Evening star., 1932-03-10

tured products are being taxed, it would
be unfair to exempt them.
IF you exempt canned goods, you
might have to have 3 per cent tax
instead OF 2.25 per cent tax"
III the bill before you is enacted into
law the budget will be balanced" Crisp
said.
1.-THE committee action in formulating
this bill was patriotic and non partisan,
ana II Is your duty as members of Con-
eress TO act likewise"
!, At about the time the House was
being urged to pass the. tax measure,
Representative Wood of Indiana, rank
Ing Republican on the House Appropria-
tions Committee, called at the White
House and told President Hoover the
tax program might have to be ex-
panded upward before Congress COM
pleted work on it.
Wood said he would not be surprised
II 1t were found necessary to enlarge
the tax SO as to meet the reduced re-
turns on incomes which will be brought
20 light March is.
Wood, an ardent supporter of the
sales tax as a means of raising revenue,
said at the White House that he has
always favored such a tax and in his
opinion, this Government would not be
in its present predicament II there had
been sales tax.
He expressed grave doubts as to the
adequacy OF the 2.25 per cent manu-
factures tax as provided In the House
bill. He predicted that when the In
come-taK returns are made known
March Is, it will be found that incomes
throughout the United States have been
SO greatly reduced that the revenue
from this source will be considerably
less than expected.
In the opinion of Representative
Wood, the sales tax will collect revenue
with little protest and disturbance to
business and Is unquestionably the
easiest tax administered. Moreover. he
believes 1t more evenly distributes tax
alton. Without attempting to speak fof
the President, Mr.. Wood intifnated Mt
Hoover appears to be favorably inclined
to the proposal.
Responsibility Of Congress.
In urging passage OF the tax measure
Crisp told the House the Constitution
required that members of Congress
raise revenue required to operate the
Government, and that it was imperative
that they accept the responsibility, re-
gardless Of partisan beliefs
He appealed to the members to ''vote
your intellectual Judgment and not re-
d sort to political exigencies"
Unless the financial stability of the
Government is maintained, tia whole
world will become frightened over its
ability to pay" the Georgia Democrat
said
THE only honest way for the Gov
ernment to get money for operation,
he declared, ais through taxes"
Crisp said the banks over the coun.
try were pursuing a policy of calling
loans and keeping in liquid state ii
- order to buy Government bonds, thu.
depriving business Of money for de-
veiopment and adding to unem
ployment."
when it goes out that the Govern
ment will not sell any more bonds
banks, insurance companies, loan com
panies and other financial institution
will begin loaning money to individual
and industry for business purposes ant
this will enable the employment o
many of the idle workers." he said.
Bill All Important.
Crisp said that ''if eyer there was
tax bill brought before the House tina
taxed the wealth until it is almos
conflscatory, 1t is this bill"
In analysng the income tax .provi
sions, he said the increases would com
pei 100000 persons to make return
and 1,7oo 900 to pay taxes.
He told the House that with maxi
mum OF 30 per cent on the surtaxes OF
incomes over 100000, plus the regula
per cent income tax, a man earninl
sl,o0o,0oo a year would pay S43e ST.
into the Federal Treasury, including
exemptions.
"'rhe Treasury estimates that unde
these unquestiofably high rates, tn
bill will bring in only sii2,ooo,o0o II
income taxes" he explained.
To-day there are thousands of mil
lionaires who pay no more incom
taxes because when they deduct thei
losses from their income they don
have any incomes, he said, adding tina
through the bills administrative pro
: yis changes this would heNsctifed.