The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-07


The bill will balance the
budget in the fiscal year 1888,
if congress reduces govern
mental expenditures by $231,-
100000 to $25O,OO0,OOO, it is
claimed.
While a large majority of the
finance committee accepted Mills
program, variously called a com
promise" and his peace offering, Z"
four members-two progressive Re-
publicans and two Democrats-voted
against it.
Around this nucleus Of four, led
by Senator Robert La Toilette,
there probably will be built plans
for a bitter fight.
And this fight against the adj
ministration's tax program will be
complicated, and probably length
ened, by the inevitable row over
the tax-tariffs included in the
revenue bill.
Reversed Numerous Times
The committee, after long weeks
OF hearings, weary days OF execu-
tive sessions during which it re-
versed itself innumerable times, quit
Thursday night with a tax bill that
probably would have balanced the
budget. It included the highest in
come taxes since 1922. numerous
special excise taxes, and four tax
tariffs.
Friday morning, Mills came be-
fore the committee, and within
three hours it again rewrote the
bill, accepting almost all of the
treasury's new, compromise tax pro-
gram.
The confusion within the commit
tee room was greater than it had
been before. Even senators. emery
ing from their room into the ante
room where lobbyists crowded
against newspaper correspondents,
were note quite clear as to what
they had done.
The most unusual Of the ac-
cepted Mills proposals was for S
cents a pound import tax on crude
rubber. Senator David Reed (Rep.,
Pa originally sponsored this. but
he apparently dropped his proposal
when it was reported that many
firms had years supply OF rubber
on hand, and hence that the tariff
would yield no revenue. The treas
ury now estimates it will raise $751;
100000 annually. This point was
holly contested by some members,
including Senator Tom Connally
Dem, Tex.
-Four Oppose Program
No new estimate was given fol
the four other tariffs, which we're
kept in the bill-thoSe on oil. lum-
Der. coal and copper. Elsewhere, it
is said. these four tariffs would
yield only about 100000 a year.
A capitol tax expert said the
treasury estimate of yield from the
rubber tax was high, as we're the
treasury estimates on yield from the
excise taxes on lubricating oil, and
UOl1t-UIGW4AlE NAA1AAAos
All other treasury estimates, this
expert declared, we're very con-
sentative"
The four who opposed the Mills
Recommendations James Couzens
rep, Mich, La Toilette rep,
Wis, Cordell Hull Dem, Tenn
and Connally-take the attitude
that the Thursday tax bill, as writ
ten before Mills attacked what he
called its atrocities had been
adopted by a majority vote on all
items. that It would have balanced
the federal budget next fiscal year.
and that il should not have been
ditched for the administrators
proposals.
Mills Is Well Pleased
Mills. himself, however. was well
pleased.
The action by the senate finance
committee he said in statement,
lin reporting out by large ma
jority, on a strictly nonpartisan
basis, a revenue bill which will pro-
duce in excess Of $1,000. 100000 is
another definite step in the prog
ress toward restoring government
finances to a sound condition.
The bill IS. Of course, not perfect;
but most Of the Objectionable fea-
lures, such as the double taxation
involved in the application Of the
normal tax to dividends. the denial
Of any carry-oyer of net losses, the
penalty rates applicable to the filing
Of consolidated returns. and the
drastic provisions relating to losses
on security transactions, have either
been eliminated or modified"
Here IS a resume OF the bill, final
action upon which Is to be taken by