Evening star., 1932-01-24
POWER TAX PLEA
sTIRS HOUSE BODY
SET TO DRAFT BILL
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lowering the income tax exemptions to
take in about TOO, 900 additional poten-
tial tax payers, bringing the exemption
for married men from $4,000 and heads
of families to s2,50O, and for single
persons from $500 to $1,000. This
Recommendation has been resisted
strongly by many of the Democrats and
some of the Republicans, who have in
sisted that TIE increase in income taxes
shall fall only on those better able to
pay.
Exemptions Cut Likely.
But 1t Is now reported that some re-
ductien in exemptions may yet be mace
In the bill; that some of the Demo-
Gratis as we'll as the Republicans are
considering the proposal more favor
ably. Certainly there will be. strong
effort in the committee to bring ABOUT
such legislation, even though 1t talIs.
The administration tax plan con-
templates additional levies on TOBACCO
manufactures and products, except on
cigars; stamp taxes on transfers OF
sales of capital stock; extension OF tne
present tax on admissions; manuiac-
f,lrers tax on sales of automoDiles'
trucks and accessories; stamp TAX On
convevance5 of realty; a manufactures
sales tax on radio and phonograpn
equipment; a stamp tax on checks, ana
a tax on telephone, telegraph, raolo
and cable messages.
Speaker Garner indicated yesterday
to representatives of the automoplle
industry that the Democrats preferred,
If possible, to raise the revenue neeoed,
aside from the increased income taxes,
on a few industries, perhaps TWO or
three, rather than to spread them over
a large number. He pointed out that
in this wsv the revenues could be more
easily collected and at less expense to
the Government The automobile rep
resentatives protested at the committee
hearings strongly against the proposed
sales tax en- automobiles and trucks.
Electricity Tax Urged.
The Democrats. in addition to tax
on electricity, also are considering a
gasoline tax and increased taxes on
sales of stock. 1t was admitted yester-
day that the proposed tax on electricity
would have to be worked out carefully
SO as not to interfere with the rate
schedules set up by public utility COM
missions throughout the country. Un-
doubtedly, it was said, it would be
passed on to the consumer in some
way Representative Crisp has estimat-
ed that revenue amounting to $3.50, ,000,-
600 year could be raised from a tax
on electricity and that another $780,
600 900 could be raised by one-cent-
a-gallon tax on gasoline.
The Democratic leaders of the House
are intent upon keeping down govern
mental expenditures to a minimum as
one means of meeting the Government
deficit. Already, in round figures. $10,-
600, 900 has been Topped off of the two
appropriation bills that have been pre-
sented to the House, as compared TO
the budgetary estimates submitted to
Congress. An effort is to be made to
scale down all the appropriations on
all the bills that come before the House.
The witnesses appearing before the
Ways and Means Committee have pro-
tested vigorously against increased
levies on the industries they represent.
Tomorrow the hearings will deal with
the administrative features of the law
proposed, taxes on tobacco, motor busses
and kilograms.