Evening star., 1932-04-04
A New battle-ground.

1He scene OF Jne TAX Dill nSnJ SnlItS
to the Senate, with every prospect of
desperate encounter. The revenue
measure, as it passed the House. will
be the target of many different groups
of Senators. When the House dis
carded the manufacturers sales tax
and substituted therefor a long list of
so-called excise taxes on the sales of
various commodities Pandoras box was
opened. The House, terrified because
of the uproar throughout the country
and the demand for balanced budget,
agreed to these excise taxes practically
without debate. In the Senate, how
ever, there is apt to be a different pic
ture. Senators are less easily terrified.
Moreover. they rarely permit anything
to go through without debate.
One group of Senators will seek, it
is said, to restore to the revenue bill
the general sales tax as a means of
avoiding many of these excise taxes.
The prospect of success for such
move, however seems almost negligible.
The House Democrats having scuttled
the manufacturers sales tax, 1t Is not
likely that the Democrats of the Sem
ate will seek to revive it. The group of
Republican progressives will strongly
oppose it. Under such circumstances,
only the regular Republican Senators
are left to support sales tax, and even
they will not be lined up solidly in
favor of it. And should the Senate
accomplish the unexpected and restore
the sales tax to the bill, the House
would never accept it.
The Progressive group in the Senate
wishes to place the entire burden of
taxation on wealth. Senator Borah,
for example, has in the past vocifer-
ly opposed lowering the exemptions of
the income tax and increasing the
normal income tax rates. The House
has done all of these things and the
House bill will be attacked by the Pro-
gressives for that reason. Nor will the
progressives look with favor on the in
creased rate for letter postage, esti
mated to raise S135,000,00 from the
letter writer's of this country. The ex-
else taxes on matches, radios and pho
nographs, on candy and many other
articles will likewise meet with opposi-
ton from some of these progressives.
The House went as far as it could,
in the opinion of those who have knowl-
edge of the situation, in raising the
tax rates on incomes and estates. 1t
restored the wartime rates On incomes
and placed higher levies on estates and
gifts than this country has ever seen.
The ProgresSives in the Senate, unless
they are opposed to balancing the Gov
cInments budget, will be compelled to
support some other kinds of taxation.
Wealth, after all, can bear just SO much
of the burden. Moreover, if taxation
becomes confiscation the burden can be
borne only once.
Those interests upon which the bur-
den of taxes will fall under the House
bill are girding their lons for the battle
in the Senate. The New York Stock
Exchange and the exchanges in other
cities OF the country are preparing to
oppose strenuouSly the tax of one
fourth of one per cent on transfers of
stock holding that such a tax would
result disasGously for the exchanges
and for business. Pressure will be
brought to bear on the New York Sena-
tors, the New Jersey Senators and
many others to modify this tax. The
automobile industry. aroused over the
excise taxes placed upon passenger cars,
trucks and accessories, is said TO be up
in arms
With all these conflicting interests
clamoring at the doors of the Senate
the task ahead is both perplexing and
grave. A great victory was won in the
House tor the people and their Gov
ernment when the opponents Of q bal
anced budget were Overwhelmingly de-
feated. 1t does not seem possible OF
probable that the Senate will not con-
cur or agree to the necessity of a bal
anced budget. Anything less would be
a disaster. The duty of the Senate is
to act promptly on this revenue bill
To do less would be TO retard the re-
covery Of industry and Of employment.