Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
DEMOCRATS FIGHT
TO SAVE TAX BILL
House Adjourns After Stormy
Session-Garner Doubt
full of ReCommittal.

SeSSIOn-Gdrner UOuDt-
full of Recommittal.
Continued From First Page)
, Crisp and Mr.. Rainey yesterday after
noon it was apparent that the House
membership was entirely out OF nano'
| It ran roughshod over provision In
the bill dealing with foreign tax creoitS.
Without committing himself or the
Republicans to the plan of Mr.. Crisp
! to bring the manufacturers sales TAX
before the House Tuesday for a vote,
Representative Smell of New York said a
majority of the Republicans OF the
! House would support the sales tax. He
declined to give any definite figures,
however.
Predicts Republican Majority.
1--WE will support this tax BILL said
Mr.. Smell. I'VE will have more tnan
| a majority of the Republicans voting
| in favor of the manufacturers TAX
Beyond that, am not prepared to go,
| The responsibility for hanollng TINS Dill
! lies with the Democrats who are In
the majority"
Mr. Crisp said a subcommittee Of the
| WAYS and Means Committee had COM
pleted recommendations for further
exemptions In the manufacturers tax.
These exemptions, he said, together
with the original provisions Of the bill
eliminate from the tax practically all
| foodstuffs. The list of new exemptions
is as follows: Canned fruits, canned
vegetables. canned fish, canned meat
and smoked fish. malt syrup used in
i bread making, grape juices used by
soda fountains and in non-alcoholic
| beverages, ice cream and matted milk,
| lard and lard substitutes, sausageS,
radio leased wires and liquids used in
spraying fruit trees. These exemptions,
| Mr.. Crisp said, would be taken up by
| the full Ways and Means Committee
| tomorrow.
If they are adopted by the commit
| tee, as Is probable, Mr. Crisp will ask
| the House to permit them to be in
cluded In the manufacturers tax pro-
vision before a vote is taken on
| that tax.
Adjournment Comes Suddenly.
The close of the consideration Of the
| tax bill in committee as a whole yester-
| day afternoon came with dramatic sud-
| denness. Mr.. Crisp asked consent to
address the House for 10 minutes
| which was granted. During that 10
minutes he told the House emphatical-
ly that it was its duty to balance the
| budget. The way to balance the bud
get, he said, was provided in the Ways
and Means Committee tax bill. II this
bill Is not to be adopted, some other
form of taxation must be substituted
he lafnofol ociI ~ ~
but I am not a gutter, and intend
to stand by the committee bill"
Mr.. Rainey Of Illinois, the Democratic
floor leader, who followed Mr.. Crisp,
referred to the House as "a runaway
House"
Cries Of mo! MOI" from the Demo-
Gratis who were opposing the manufac-
turers' tax rang through the House.
II stand right behind the gentleman
from Georgia, Mr.. Crisp" said Mr..
Rainey. IT want to talk plainly. 1t
is a small matter what happens to me
in the next election or to any of the
other members of this House But I
want to call your attention to the dan
gers into which you are drifting.
THE crucial hour of this Republic
has struck and many Of you do not
Geem to realize it. We must balance
the budget and we must balance it with
real money and real taxes. The COM
mittee as whole House considering the
tax bill has been asked to rise to give
you chance for further consideration. "
Mr.. Rainey referred to the La Guardia
and Swing amendment adopted Friday
increasing the tax rates on incomes.
These are the rates, he said, which
were adopted by Congress during the
World War.
Emphasizes Changing Rates.
These rates were written into law
during the period of rising markets,
when the industries of this country
we're yielding great returns and when
the country was responding to the needs
OF war. You could do it then. Now,
when business is declining, these in
come tax rates will not yield you the
results that you expect and desire You
are driving men of wealth to the pur-
i chase of tax-exempt securities issued by
the States and by the Federal Govern
ment. Furthermore, many of the States
have high income tax rates themselves.
1t Is time that you found out what those
rates we're.
You are opposed to Communism,
and SO am I, but ] want to say that
this Government has gone further on
the path toward Communism in this
session Of Congress than any other gov
eminent except that of Russia"
Mr.. Rainey referred to the establish
ment Of the Reconstruction Finance
Corporation, set up to help the rail-
| roads, banks and the industries. He
warned the House that unless steps were
taken to balance the budget and to
make good the credit of the country
| the Government itself would have tc
take over the railroads and the banks
and the lands themselves He said
that was the only one step left to elimi-
nate all parts that wealth plays In the
economic life of the country.
You're right up against Communism
now" said the Democratic leader. He
urged members of Congress to be frank,
to do it courageously and openly.
In a more conciliatory tone Mr.
Rainey said he had no fault to find
with his colleagues; that they all had
right to their own opinions, and that
he was merely expressing his own views.
But I am worrying now more than ]
did during the war when American
boys died in the poppy-strewn fields of
France" said Mr.. Rainey.
Warns Of Defeat.
Mr.. Crisp in his appeal to the House
warned the opponents of the manufac-
turers tax that if that tax were de-
feated it would be necessary to return
to the original plan advanced by the
Treasury Departm ent, which proposed
excise taxes on automobiles, bank
checks, real estate transfers, increased
taxes on tobacco and many other in
dividual taxes. He said that the pro-
posed increases IN the income tax rates
under the La Guardia and Swing amend
ments would fail to raise anywhere near
enough money to balance the budget.
"The Treasury Department was op-
posed to q manufacturers sales tax and
III Bigger and Better Funerals
At Half the Usual Cost Are Done by