The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-21
FOODS EXEMPT
IN NEW SALES
! TAXPROPOSAL
Party Chiefs Try Again to
AppeaSe insurgents
Save Measure.
VOTE SET THIS WEEK
Wearing Apparel, Medicine
Also May Be Free
of Levy.
BY PAUL r. MALLON
United Press STAFF Correspondent


WASHINGTON, March 21.-A
new proposal to exempt all foods.
wearing apparel and medicine from
the "a per cent sales tax was put
forward today by the leaders in a
desperate effort to overcome opposi-
ton to the new revenue bill.
The offer was made at an execu-
tive session of the house ways and
means committee. No definite ac-
ton was taken.
Acting Chairman Charles R. Grips
estimated the new idea of exempt
ing foods, wearing apparel and
medicines would cost $145, 100000 in
revenue. He estimated additional
food exemptions at $80,000,00O, wear
ing apparel at $55, OOo, 900, and medi-
cines, $1O,000,0OO.
Crisp announced that if all these
concessions are agreed upon, he will
advocate new taxes not proposed in
the bill to raise the lost revenue.
He said the committee would be
compelled to consider increased
postal rates, tax on bank checks.
an automobile tax, and possibly in
creased taxes on cosmetics. He said
the insurgent amendments already
agreed to by the house over his
protest would not yield anything
like the $2OO,OOO,OOO which their
proponents claim.
May Mean Compromise
The new exemptions may become
the basis of compromise that will
bring about acceptance of the sales
tax, it was indicated later when
Representative La Guardia (Rep.,
N. " said they would meet his
objections to the bill.
If they exempt the necessities
of life that would satisfy me, for
it is wheat I have been fighting
for" La Guardia said after a con-
ference with Crisp.
The sales tax will be taken up on
the floor Tuesday. Today leaders
brought series of minor bills be-
fore the house, hoping that delay
might cool the militant sales tax
opposition.
La Guardia issued bristling at
tack upon the leaders for inferring
that the sales tax opponents were
progressing toward Communism in
the three amendments they have
enacted, which would boost the in
come tax on the wealthy to war
time heights.
Those who make that charge
have sunk so low that aviation has
not yet discovered an altitude
which would lift them to the level
of the ground" said La Guardia, a
big shouldered five-footer.
Plans Three New Amendments
La Guardia announced he would
introduce three new amendments to
the tax measure, proposing:
l. A tax of 4 of per cent on
stock transactions, with minimum
levy of 4 cents share.
2. A graduated increase in estateS
and gift taxes up to the IS per cent
maximum fixed in the income sur
taxes already adopted.
3. Abandonment of the practice of
corporations in consolidating their
returns for Interstate branches.
In reference to the last amend
ment, La Guardia said corporations
big profits in one state de-
duct losses they may incur through
CIT prices in other states. He said
abolition of that system originally
was suggested> by Speaker John
Garner when the last tax bill was
under consideration.
The sales tax vote probably will
come late Tuesday or Wednesday.
Crisp is ready to skin minor sec
tions of the bill in order to get down
to that $500, 100000 hub of his whole
tax proposal.
IT beaten, he has announced he
will withdraw the bill from the
house, and take it back to commit
tee for mending. He has said.
furthermore, that the mending will
be done along the line suggested in
the original tax plan Of Treasury
Ogden Mills.
Not Much Impressed
Some Of the insurgents were not
greatly impressed with the new con-
cessions. Representative Doughton
(Dem., N. CO., indicated his forces
would continue to pursue the pol
icy of taking everything they can
get in the way of exemptions and
and then opposing the
tax on the final vote.
At his regular press conference
today, Speaker John N. Garner de-
clined TO say whether he would per-
sonally take the floor to speak for
the sales tax when it is brought I'D
for consideration.
THAT is a matter to be decided
when the time comes" Garner said.
In the past, when the house lead
ership has been threatened with a
serious defeat, Speakers occasional
ly have abandoned the rostrum to
make a personal appeal. Reports
have said that Garner contemplated
such a step.