Evening star., 1932-03-13
NEW REVENUE BILL
IS URGED BY MILLS
Secretary Announces Full
Approval of Measure, In
cIuding Sales Tax.
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excise taxes on certain industries La
Guardia asked:
Would it net be possible to have &
vote on that section and if the manu-,
features tax Is voted out of the bill
the Committee on Ways and Means
then will take the bill into committee
and bring back a substitute?"
Acting Chairman Crisp replied:
'T do not think it would be advisable
10 vote on the proposition Of elm n T.
ing the manufacturers tax until pos
sibly it may have been perfected. II
may be amended in such way that the
House may desire to retain it or the
House may not desire to retain it. but
will say that 1t is my intention, should
that tax be eliminated, to have the
WAYS and Means Committee consider
O plan to offer in substitution for it.
For Balanced Budget.
IT will further say for myself, 1t is
irnmaterial to me what plan is adopted
that will raise sufficient money to bal
ance the budget 1 firmly believe it
is essential to do that.
IT am supporting and will support to
the extent of my ability, the bill Wnlch
the committee has brought out, because
we believe it is the most equitable, just
and fair way to accomplish the pur-
pose"
Representative Rainey of Illinois, the
Democratic leader, said he intended to
tell the House that if the manufac-
lures sales tax was not accepted, big
direct taxes on industries would be
forced through because the opposition
wuUld be compelled by their stand to
vote for them.
Whatever happens, the people OF the
country can be assured that this Con-
gress is not going to adjourn until a
revenue bill is passed that will balance
the budget" he affirmed.
Smell Sees Passage.
Rainey was skeptical about fun
Democratic support, indicating that
only about 40 per cent of his party
would hew to the line. However, Rep
resentative Smell of New York, the Re-
publican leader, predicted that "A ma
jority of the Republicans will support
the bill" which would be enough to
assure passage of the legislation by a
bipartisan vote.
Secretary Mills told Speaker Garner
at a conference at the Capitol that the
bill was wholly acceptable" to the
Treasury. He also discussed the Sit
uation with Smell and Crisp and then
told newspaper men that balancing
the budget is the most important mat
ter before the country" and added, "it
will balance the budget"
Secretary Cites Deficit.
In his radio address Secretary Mills
said the Treasury would end the fiscal
year 1882 on June 80 with deficit
of about S2,500 000,0 900 and that the
prospective deficit for next year was
$1,241 100000 unless Congress in
creased taxes.
"Our private credit structure is in
extricably bound to the credit of the
United States Government" Mills said.
s'Olr currency rests predominantly
upon the credit of the United States.
Impair that credit and every dollar you
handle will be tainted with suspicion.
"The foundation Of our CONNER
cial credit system, the Federal Reserve
banks and all other banks which de-
pend upon them is tied into and de-
pendent upon the credit of the United
States Government. Impair that credit
today and the day after thousands of
development projects-they are still
going on-will stop; thousands of
business men dependent upon credit
renewals will get refusals from their
bankers; thousands of mortgages that
would otherwise be renewed or ex-
tended will be foreclosed; merchants
who would buy on credit will cancel
orders; factories that would manufac-
ture on part-time capacity at least
will close down.
Urges Unimpaired Credit.
Impair the credit of the United
States Government and all that we
have sought to accomplish in the
course of the last few months is to
q large extent nullified. The renewed
courage and confidence that have re-
placed the fear and uncertainty which
prevailed almost universally, will once
more grow weak and hesitant.
You cannot climb a hill without
effort. You cannot throw off the burden
of depression without feeling some
weight. The country's Representatives
In Congress are facing a most exacting
duty. Let the united voice of the de-
termined and courageous assure them
of full cooperation and support in car
rying out this essential task"
Huddleston took his colleagues by
surprise when he advocated the sales
tax and the necessity for balancing the
budget and warned of serious con-
sequences unless the deficit is wiped
out.
Il suppose men will say, oh, we can
repudiate the public debt" he said
Eyes, we can demolish the Constitution
We can have political revolution. We
can play hell generally, but show me
the man who is willing to contemplate
the full consequences which I have
pointed out without taking some toll
I'VE have to balance the budget. The
deficit, although a Republican deficit
Is our deficit, too. I have heard in the
demagogues' club this talk about il
being q Republican deficit and let the
Republicans worry about it; and 1t il
a Republican deficit, but this is not q
Republican country. 1t is my country
and it is yours.
Admits Sales Tax Is Bad.
''TaXes are bad, and sales taxes are
particularly bad. They are levied upor
poverty and not upon wealth. They are
levied upon mans needs and not upon
his ability to pay. They violate every
fundamental of taxation, but there is
nothing new in the proposal to levy a
sales tax We have had a sales tax
ever since 1867; sales tax on tobacco
o necessity Of life, thing which every
the commonest and most ignorant man
uses
Representative Garfield Oemocrat)
missouri. a member of the Ways and
Means Committee, served notice that
he would offer an amendment to make
the sales tax 2 instead Of 225 per cent
but that he would support the higher
rate If the lower was not accepted
Forecasting that the revenue to b.
obtained from the bill would be in.
adequate to wipe out the deficit, Repre-.
sentative Andrew Republican,, Mas
canl1iISatfc advocated a fox
beverages.
Representative Ketcham (Republi.
cam, Michigan. said the adoption Of
the sales tax might lead to revision
of the revenue-raiSing system, with
corporation and income levies replaced
by a sales tax.
Representatives Hope of Kansas