Evening star., 1932-05-08
SALES TAX FIGHT
WILL Be RENEWED
ON SENATE FLOOR
Walsh of Massachusetts Win
Offer Plan as Substitute for
Many Special Levies.
| OR 1Ta PER CENT
RATE WOULD BE FIXED
Watson Foresees Passage Of Reve-
nue. Bill After Two Weeks
Consideration.
BY G. GOULD LINCOLN.

On the eve of the report of the
revenue bill to the Senate by its Finance
Committee, Senator David I. Walsh Of
Massachusetts,, a member of that COM
mtttee, announced yesterday he was
preparing an amendment for a general
manufacturers excise or sales tax which
he would offer from the floor Of the
Senate.
The Massachusetts, Senator is to take
the lead in the fight to substitute such
tax for many Of the excise or sales
taxes. on individual industries, still re-
tained in the bill as approved by the
Senate Committee.
Senator David A. Reed of Pennsyl-
vania, it developed yesterday, agreed in
Fridays meeting of the Finance Com
mittee not to present his proposed /
per cent manufacturers sales tax
amendment after Senator Thomas Of
Idaho and other opponents of the
manufacturers sales tax offered to sup
port the so-called Treasury compromise
tax plan. Senator Reed, however, re-
served the right to vote for and speak
for a manufacturers sales tax amend
ment If it is offered from the floor.
or IL Per Cent Rate.
Senator Walsh's plan looks to a
manufacturers tax of or ! u per cent.
The original manufacturers sales tax
reported to the House from the Ways
and Means Committee of that body was
q IyaI IcH mil
exempt from its operation food, cloth
ing and some other necessities.
Proponents of the manufacturers
sales tax believe a majority of the
Senate would accept such an amend
ment provided there was any assurance
the House would finally agree to it after
the bill had gone to conference.
Last night there was no assurance
whatever that the House would retreat
from its earlier position in opposition
TO manufacturers sales tax. However,
individual members Of the House al
though they would not permit them
selves to be quoted admitted the manu-
facturers' sales tax would be preferable
to the special taxes and nuisance taxes
now included in the bill. This adnlis-
sion was made by some of the members
of the House who voted against the
manufacturers tax when the bill was
DS1OIe tIldL DOuy.
House Acceptance Doubtful
Supporters of the manufacturers
sales tax are hopeful the opposition to
many Of the special taxes in the bill
will finally align a majority of the SEN
ate in favor of the Walsh proposal.
House leaders who supported the manu-
facturerS' tax, including Representative
Rainey Of Illinois, Democratic leader OF
the House, are ready to vote for that
tax again should the Senate include it
in the revenue bill. They said yester-
day, however, they doubted that the
House would accept it.
Many members of the House have
since their vote against the manufac-
turers' sales tax written letters to their
constituents in an effort to justify their
position. This, it is said, makes it diff
cult now for them to reverse their stand
1t is a fact, however, that House mem
berS have received flood of letters re-
Gently urging them to adopt a general
manufacturers sales tax as less burden
some
Senator Walsh said the amendment
ne is drafting would make it possible to
eliminate f.0fl the bill the special tax
on automobiles, trucks and accessories,
chewing gum, jewelry (the jewelry tax
was carried in the House bill, but was
eliminated from the bill by the Senate
Finance Committee), lubricating oil,
telephone and telegraph messages radio
sets, refrigerators, furs, grape Juice,
sporting goods, cameras, matches and
some Of the stamp taxes He said, too,
that it would make it possible to raise
the exemption on admissions from 10
cents to 46 cents.
Watson Promises Support.
Senator Watson of Indiana, the Re-
publican leader, said he would support
the Walsh proposal when it is offered
in the Senate. He added that he
thought the manufacturers sales tax
the fairest and most efficient method of
raising revenue needed to balance the
budget.
Discussing the revenue bill as 1t now
stands, Senator Walsh said he believes
the measure has been improved by the
Senate Committee, particularly by the
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