The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-27
BATTLE OPENS
IN SENATE FOR
TAX ON sales
Amendment Would Place
] ga Per Cent Levy on
Most Merchandise.
HOOVER IS TOLD FIRST
President Advised SentI-
ment in Upper House
Grows for Plan.
BvIriiedPrcm


eral sales tax Of ~ per cent. ex-
empung food. medicine. clothing
and some other articles, was sought
TODAY in tax bill amendment Of
fered BY Senator David l. Walsh
Dem. Mass, but surveys by the
United Press indicated the revived
movement was short of a majority
on both sides of the Capitol.
Walsh's action came after Presi-
dent Herbert Hoover had been as
sured IN carly morning conferences
with Senator Reed Smoot tRep..
Utah) and Senator Royal Copeland
IN. " that sentiment in the SEN
ate was swinging toward the sales
tax. which the house already has
rejected
Walsh said he would call the
amendment up for senate action
later.
II is understood advocates of a
general sales tax intend to wait
until the senate has disposed Of
other items in the bill before ask
ing for a reconsideration.
The senate coalition in charge of
the bill has been endeavoring for a
week 10 force the general sales tax
issue into the open.
Wrecked in House
The Walsh amendment is similar
TO the ways and means committee
bill, whith was wrecked IN the house
rebellion led by Representative F.
IL La Guardia (Reps n. "
Sales tax a,Eocates today claimed
a majority of the senate for their
measure, and said house sentiment
rapidly is changing.
Walsh's amendment would ex-
empt from the tax foods, medicines,
clothing-except shoes costing more
than IS. and other articles costing
more than S35: all agricultural prod
ucts: fertilizer, fertilizer ingredients.
agricultural machinery: implements
and workmen's hand tools; tobacco,
cigarets, newspapers. periodicals.,
books for the blind. Bibles and other
articles identified with religion.
Provides Vast Revenue
The general sales tax is estimated
by the treasury 10 offer 335000000
of revenue. Walsh would substitute
that sum for the revenue to be real
lied from so-called special. luxury
and nuisance taxes, the taxes on su-
tomobiles, trucks and accessories
including tires and tubes and other
levies.
Leaders of opposing parties and
tax factions in the senate joined
today in giving the nation emphatic
assurance that. regardless Of pres
ent delays and disagrements. con-
gress will pass a revenue bill that
will balance the budget, and pro-
tect the gold standard.
A direct declaration to that effect
was signed by Republican Leader
James r. Watson and Democratic
Leader Joseph T. Robinson; by Sem
ators Smoot CRep. Utah) and
Pat Harrison Dem. Miss). directors
Of the fight for adoption of finance
committee tax rates. and by Sena-
tors David A. Reed rep. Pa and
Walsh Dem. Mass. who hope to
substitute the general sales tax.
Statement Is Issued
Their statement said:
ALTHOUGH We have not as vet
been able to reconcile our differences
on the details of the pending tax
bill. the undersigned firmly are de-
termined that the tax bill will be
passed in such form as eventually
to balance the budget Of the ma
tional government and to preserve
the integrity OF our currency.
And We can assure the country
that that is practically the unani-
nous sentiment of the senate re-
CARELESS Of party
Reed issued the statement. he
= accompanied it with the explana-
ton that there had been rumors
among Wall Street brokerage houses
that congressional leaders were re-
conciled to default of the gold
standard, and would not balance the
budget.
AT the time the statement was is
sued the senate had voted s66e. 500
900 into the sl,o0O.0O0.0 600 revenue
bill
Speed Through Bill
Speeding through the bin in con-
trast TO its dilatory oratory Of the
first days OF tax bill debate. the
senate Thursday voted $4,000 900
OF new luxury and nuisance taxes.
To this they added $4,000. 900 OF ex-
else taxes and ss5.0O0,oOO of special
taxes.
The communications taxes we're
voted into the bill with transmission
Of news exempted. Radio broad
casters leased wires also were
exempted from tax for such times
as they are devoted 10 non-com-
mercial programs
The 10 per cent admissions tax
! exemption was increased from 10
cents 70 40 cents with a decrease OF
revenue from sll0.0O0.0 900 to s44,-
600 900.
The aggregate Of taxes adopted
Thursday was sl76.0O0.O00 Previous
reductions Of committee rates had
f.knr ems nm mn from The hin