Evening star., 1932-05-26
SENATE REWR|TES
TAX RATES
TO END LONG FIGHT
New levieS Put Back m
Revenue Measure in
Rapid-Fire Order.
ACTION TAKEN ON ADVICE
OF FINANCE COMMITTEE
Changes Recommended by Group
Estimated to Produce Total
of $50, 100000.
By the Associated Press.

i BY the Associated Press.
In burst of speed that signalled the
end Of the tax controversy, the Senate
| today reWrote the entire excise tax
schedule Of the billion dollar revenue
| bill.
1t placed new excise levies back into
the measure so fast that at stages no
one knew just what was going on The
heaolong action was taken upon the
recommendation Of the Finance Com
mIttee.
obviously tired of the tax contest and
willing to accept the new compromise
offered by the Finance Committee which
met early today, the Senate shouted In
the new levies in rapid-fire order.
House Taxes Restored.
The taxes on jewelry cameras. fire.
arms, matches, soft drinks. candy. boats
cosmetics and toilet preparations pro-
vided by the House measure were re-
stored TO the Senate bill along with tho
other excise rates on automobiles and
chewing gum previously agreed upon in
the Senate.
All this was done to lignten the bur-
den from automobiles resulting from re-
fusal of the Senate 10 increase the rates
on passenger cars and trucks from
TO 2 per cent to and 3 per cent, re-
spectively
The committee. in rewriting the
schedules, proposed to make the ex-
emption from the admissions tax apply
on tickets of 80 and less The compro-
mise bill previously provided a tax on
all tickets over 10 cents.
Speculation on Conference.
Meanwhile, there was considerable
speculation at the Capitol on what at
tention, if any, was given to the tax
contest at last nights White House
meeting between President Hoover and
the publishers.
1t was authoritatively stated by re
sponsible leaders that Mr.. Hoover had
no intention Of transmitting any mes
sage to the Senate, at least at this
time.
The sales tax contest is impending.
but the advocates of this disputed levy
do not see majority for their cause.
Meanwhile Representative Martin,
Republican. Massachusetts,. told news
paper men he had made a partial poll
of the House Republicans and found
that 20 who voted against the sales tax
would approve it.
Voices Optimism.
The sales tax was defeated in the
House, 223 to 1853, or by majority
of TO- 1t would require a change Of
So votes to pass it.
Il believe that if the Senate adopts
the sales tax the House will approve it
now" Martin said. Although 1 have
not discussed 1t with Democratic OPP
ponentS. l am informed that sentiment
| Tor the sales tax is growing on that
side"
However, Representative La Guardia,
Republican, of New York, who led the
bipartisan insurgents in their fight
against the sales tax, said:
We are Just as strong now as before
and we'll resist any attempt to foist
the sales tax on the people"
The Senate restored the 10 per cent
tax on cosmetics and toilet articles
without even a record vote. This added
s20,000,000 in revenue to the bill
Exemptions Shouted Down.
Quickly the 10 per cent jewelry tax
was restored to the revenue bill.
Exemptions of tooth paste and den-
tritice voted by the committee from the
toilet article tax were shouted down by
the Senate.
| 1t also voted down a recommendation
to exempt sterling silver from the jew
elry tax by a 43 to 80 vote.
Senator Connally, Democrat. Of
Texas, had voiced a demand for tax
on sterling silverware. Senators from
the Western silver producing States
argued the tax would complete the de-
struction of the silver industry.
Another $4,000. 900 was added as the
Senate restored the House tax of 5 per
cent on mechanical refrigerators.
The committee recommendation to
exempt jewelry selling for less than s3
from the 10 per cent tax was accepted.
The 10 per cent levy on sporting
goods, estimated to produce S6,50e 900,
was restored to the bill.
The Senate, without any debate, also
reinstated the 10 per cent tax on fire.
arms shells and cartridges, involving
SZ,oUU,UUU.
Match Tax Reimposed.
Aerial cameras were exempted from
the 10 per cent levy on cameras, as this
tax was revived.
Reimposing the match tax, the Sen
ate cut the rate from to cents q
thousand on wooden and fixed the rate
at one-half cent a thousand on paper
matches.
Revivlng the candy tax, the Senate
cut the rate from per cent, as pro-
vided by the House, to 2 per cent. The
lower rate was estimated to yield
SIS. 100000.
The tax on chewing gum was fixed at
2 per cent instead of the 5 per cent
rate provided by the House.
The Senate substituted license tax
on boats and yachts for the House 10
per cent levy. The new schedule Is on
graduated scale. beginning at $40 on
boats of more than 28 feet ana going
up to 5000 on boats over 200 feet.
Restoring the soft-drink tax sched-
ule, the Senate quickly approved a levy
of LIS cents gallon on cereal bev-
Continued on Page 2, Column 81