Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-05
TAX BILL BEFORE
HOUSE MONDAY IS
COMMITTEE AIM
Excise Schedule and Estate
Provisions Changes Re-
main to Be Settled.

The House Ways and Means Com
mittee today approved tax on oil
importations, but the rate was not
disclosed.
BY the Associated Press
A final drive was undertaken today
in the Ways and Means Committee to
get the big new tax bill in shape for
presentation to the House Monday.
Just two Portions of the revenue
measure remained to be settled; the
excise tax schedule from which about
SOC, 900 900 is to be derived, and ad-
ministrAtive provisions of the estate
tax which are to be changed. The
excke tax decision choosing the indus
tries to be taxed is highly controver-
sial subject.
AS now shaped, the measure centers
around manufacturers sales tax OF
2.25 per cent, to be levied on virtually
every finished product not definitely
claSSed as necessity Of life. Provision
has been made not to pyramid the tax
| on products made up through repeated
manufacturing processes. The amount
| to be produced from this source is esti-
mated at S625, 100000.
Increases on Incomes.
For the rest the bill will carry in
creases in the individual and corporated
income taxes, a gift tax and higher es-
tate taxes The rates for these all have
been approved together with new adj
ministrative provisions to yield more
revenue from existing taxes, but the
committee has not made them public.
An estimated 100000 is to come
from the income and estate taxes, and
half that much from the administrative
changes.
The sales tax would become effective
80 days after passage Of the law, and
will be collected through licensing of
the manufacturers of finished products
with a turnover above $4,000 a year
The administration will express its
opinion in a formal statement as soon
as the program is completed. This
may be done today.
Secretary of the Treasury Mills con-
ferred at length this morning with
President Hoover. Later, he said he
had information that the committee
| expected to finish its tax program to-
| day and that he would issue formal
statement Immediately thereafter.
Although the TreasuryS anticipated
deficit in 1888 under present revenue
| is 81 ,24l 100000, the total yield of the
| new bill is expected to reach but ST.
loo, 600. 1t is being drawn in the
expectation that Congress will reduce
| President Hoover's budget estimates BY
! S150,000, 000
The committee was to consider today
! the levying of tax on petroleum i'm"
| ports along with other recommended
! excise levies on electricity, gasoline and
| industrial alcohol. Proponents of the
| tax are advocating levies from Is to 81
/ cents barrel
Bonds to Be Issued.
In connection with his announce
| ment that the bill would be ready fol
| House action next week, Acting Chair
man Crisp said Secretary Mills was
| planning to issue bonds soon for re-
! financing purposes.
The people of the country ought tc
/ know that We are planning a tax bill
| that will balance the budget" the
| ing of the budget through this revenue
/ bill will do more to restore confidence
| and normal business conditions ano
provide employment than any one
! thing Congress can do"
| The first attack on the new sale.
! tax in the House was made YESTERDAY
! by Representative Cannon, Democrat
of Missouri, who said it puts it or
the poor man, laborer and consumer
y 1t is tax on prosperity" he said
Whenever you increase the cost o
articles you decrease consumption Tit
sales tax will slow down economic re.
| covery of the country"
! of Kansas. said in reply that ''if yol
put on a per cent sales tax you will
raise immense revenue and the MAJ
who has the most money to spend vii
| pay the most money in taxes"
Many people would not even know
| there was a tax he said