Evening star., 1932-01-24
POWER TAX PLEA
ST|RS HOUSE BODY
Proposal Discussed Widely as
Revenue Bill Nears Draft
ing Stage.
BY G. GOULD LINCOLN.

The House Ways and Means Commit
tee this week begins actual work draft
ing Federal tax bill designed to raise
revenue much needed to aid in balanc-
ing the Government budget.
AS the committeeman were prepar-
ing to get under way with the bill
there was wide discussion of a newly
suggested proposal that tax be levied
on electric power. In some quarters
it is believed that such a tax would
materially increase the revenues. Rep
resentative Crisp of Georgia advanced
the suggestion first at hearing before
the committee.
If such plan OF taxation were
adopted, 1t was said, it might be wild
ened to cover other public utilities, in
cluding gas, telephones, etc.
Everything possible, it was said last
night. would be done to expedite the
revenue measure in committee. The
hearings, scheduled to close tomorrow
may run through Tuesday because Of
the large number of witnesses still
waiting to be heard. But as soon as
they have been completed, it is the pur-
pose of Chairman Collier to begin the
consideration of the bill
Speed Held Essential.
Doubt still remains as to whether
the changes in the income tax law,
which are to be made in the tax re-
vision bill, are to be retroactive. If
they are, speed is particularly neces-
sary, for tax returns must be filed
under the law by March IS. After the
House has dealt with the tax bill it
must run the gauntlet of the Senate
and the conference between the two
houses. Some of TIE Democratic
leaders have scored the retroactive fea-
ture Of the tax program advanced by
the administration.
The Republican members of the
Ways and Means Committee who have
been sitting with the committee dur
ing the hearings now closing will be
invited to sit with the Democrats in
drafting the bill. 1t is not unusual
to have representatives of the minority
party take part in the committee wor4
on a revenue bill. Indeed, it has been
a custom to do so. With a bill to in
crease the taxes being drafted, the
Democrats may we'll desire to have the
Republicans take part of the RESPONSE
bility. And with Republican admin
istration in office, this is responsible
ity that the Republicans could not
dodge if they wished to.
Accept MELONS Plan.
1t looks now as though the Demo-
Gratis of the Ways and Means Com
mittee would undertake to draft bill
which would raise the whole amount of
additional revenue recommended by
Secretary Mellon of the Treasury De-
partment At first some of the Demo-
cratic leaders were inclined not to pro-
pose additional taxes, raising only part of
the $500, 100000 which the Mellon plan
would raise during the remainder of
the present fiscal year and of the $920,-
100000 which the plan would bring in
during the next year. They saw no
reason, they said, why the Government
should not borrow a considerable por-
ton of the money needed to meet the
Treasury deficit. But there has been
a change in sentiment. 1t is obvious
that if the Democrats do not give the
Secretary Of the Treasury the addi-
tional amount of taxes he has recon-
mended and the fiscal affairs of the
Nation go wrong, there would be Loo
hole through which to attack ti:e
Democrats.
TIE administration has proposed
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