The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-18
BOOST TAX ON
Big INCOMES,
PLEA IN HOUSE
Efforts Will Be Made to In
crease Levy to Level of
War Time.
FURRY OF ORAT0RY
Fight to Defeat Sales Reve-
nue. Proposal Grows;
Leaders Hopeful.
BY MARSHALL M'NEIL
Times staff Writer


Times staff Writer
WASHINGTON, March 18.-In.
comes of the rich, only mildly taxed
by the $1,1O0,o 100000 revenue bill
were the object of attack in The
house today.
The sales tax opposition won ar
unexpected victory in the first test
today.
The first income tax amendment
proposed by Representative FiorellC
H. La Guardia Rep., N. W was
adopted. 1t boosted the rate or
incomes above $4,000 to 7 per CEN
from per cent proposed by the
leaders. The present rate is pei
cent. The vote was 121 to 81.
The action was a blow to ths
coalition leadership on the tax bill
1t took the bill out of their hand;
and provided the first step in build.
ing up a substitute.
Want War; time Taxes
At the same time it can not b.
considered as direct indication Of
how the house will go on the 21z
per cent sales provision. It merely
meant the leaders had been out
Unanswered and the opposition
considerably heartened.
Efforts will be made to increase
to wartime levels the surfaces or
large incomes.
General debate closed in a furry
of oratory Thursday night, oppo-
nents of the bill and its advocate;
holding the floor until after 10 D. m
The former pointed out again the
inequalities of the proposed sale.
tax, which will levy from 600 mil
lion to a billion dollars on con-
Sumers.
The latter reiterated their claim
that the federal budget must be
balanced, and that the sales tax is
the way to do it.
Increase on Moderate Incomes
The bill increases income taxes
of the persons of modest means
and the rates progress upward tt
500 900, where a 40 per cent sur.
tax is imposed. But there the!
stop short, the income over mil
lion dollars, for instance, paying nj
higher rate than that over 100000
Representative Phil Swing (Rep.
CALI, Representative La Guardif
(Rep., N. " and others will endea.
vor to change this, the former sug.
costing a maximum rate of IS PEE
cent-the war time levy-and TIT
latter. 40 per cent.
The house ways and means com
mittee is charged with violating the
whole theory of income tax legisIa.
ton by stopping the surtax in
creases at 40 per cent.
Leaders Still Confident
Proponents of the war time levie:
are convinced they will bring II
more than $200,000,000 additions
revenue.
The committees argument is tina
it actually has soaked the rich" by
levying the 40 per cent surtax or
incomes of 100000 and over, plus
the per cent ordinary tax, anc
that higher taxes will yield little il
any more money. and probably
cause the wealthy to sink more OF
their money in tax exempt securi-
ties.
Democratic leaders still are con-
fident that the sales tax would be
approved when it is voted on next
week, played their ace as genera
debate closed.
Rainey Predicts Panic"
They called on Majority Leader
Henry T. Rainey of Illinois, who
addressed the house for more thar
an hour Thursday, using threaten
ing, conclliatory, cynical, politica
and economic arguments 10 con-
vince the membership /. should
support the $1,100, 100000 bill as is
He followed this with radio speech
Thursday night, delivered under
| the auspices of the Democratic ma
tional committee.
In his radio speech, Rainey made
the bald statement that the gov
ernment'S credit is destroyed" as al
answer to those who contend tina
tax increases be curbed and gov
eminent borrowing maintained ant
/ widened.
He predicted the biggest PAM,
any nation ever had" unless con
gress passes the tax bill and bal
ances the budget.