Imperial Valley press., 1932-03-21
WARFARE
RESUMED
IN HOUSE
Leaders Make Desperate
Effort To Beat Revenue
Bill Opposition.
GRANT EXEMPTIONS
Foodstuffs, Wearing Ap-
parel And Medicine Off
Sales Tax.
BY PAUL X. MALLON
United Press Staff Correspondent

lDnlteu freSS Stai1 tOTTtSpOnutntl
WASHINGTON, March 81. "A
new proposal to exempt all foods,
wearing apparel and medicine from
the "a per cent sales tax was put
forward today by the leaders in a
desperate effort to overcome oppo-
sition to the new revenue bill.
The offer was made at an eXecu-
tive session of the house ways and
means committee. No definite ac-
ton was taken.
The new exemptions may become
the basis of compromise that will
bring about acceptance of the sales
tax. it was indicated later when
Representative LaGuardia, (RepD
New York, said they would meet his
objections to the bill.
IF they exempt the necessities
of life that would satisfy me, for it
is what 7 have been fighting for"
LaGuardia said after a conference
with Acting Chairman Crisp of the
committee.
The committee was called to meet
again later in the day to decide
whether the latest peace offering
should be adopted and presented to
the house with committee approval.
Other exemptions were adopted
in accordance with the recommend
ations of the Crisp -Hawley- -Rainey
coalition leadership. The committee
agreed tc make amendments which
would spare lard, sausages, dried
fruits, matted milk, ice cream, malt
syrups for bread, radio leased wires,
and materials for spraying trees.
Another approved amendment
would exempt grape juices for nom
alcoholic purposes from the 40 per
cent tax on materials used in home
brewing and home wine making.
That product would still be subject
to the sales tax.
Acting Chairman Crisp of the
sions would cost $10,0O0,000 in an
nual revenue. Canned goods exemp-
tions already agreed upon would
cost $12,000,000 making S22, 100000
already cut from the sales tax total
of $685., 100000, since the bill was
reported to the house.
Threatens New Taxes
Crisp estimated the new idea of
exempting foods, wearing apparel
and medicines would cost $145, ,000,-
900 in revenue. He estimated addi-
tional food exemptions at $80,000,-
600, wearing apparel at $4,000, 900
and medicines S10,000,000.
Crisp announced that if all these
concessions were agreed upon, he
will advocate new taxes not pro-
posed in the bill to raise the lost
revenue. He said the committee
would be compelled to consider in
creased postal rates, a tax on bank
checks, an automobile tax, and pos
sibly increased taxes on cosmetics.
He said the insurgent amendments
already agreed to by the house over
his protest would not yield anything
like the $780, 100000 which their pro-
ponents claim.
He said he had received estimates
from the treasury department indi-
eating that the whole LaGuardia
plan would fall $530,000 900 short OF
furnishing the necessary revnue.
At his regular conference today
Speaker Garner declined to say
whether he would personally take
the floor to speak for the sales tax
when it is brought up for considera-
ton.
That is matter to be decided
when the time comes" Garner said.
In the past, when the house lead
ership has been threatened with q
serious defeat speakers have occa-
sionally abandoned the rostrum to
make a personal appeal. Reports
have said that Garner contemplated
such a step.