Evening star., 1932-04-11
FARM FEDERATION
URGES SIS PER CENT
SURTAX ON WEALTHY

Continued From First Page)
posed a 3 per cent tax on the total rev.
enues of electric power companies and
on the value of natural and manufac-
tured gas produced. He opposed the
motor vehicle tax in the bill, as had
Gray.
Brenckman approved the increased
income and inheritance taxes and the
gift impost voted by the House.
Favors Wartime Gift Tax.
John A. Simpson of the Farmers
Union advocated estate and gift taxes
that will redistribute the wealth of TIE
Nation, urging that they be placed "at
least as high as in the war days"
The 65 per cent SurtaX proposal ad-
vanced by Gray would apply on in
comes of more than S5,000,000
His suggestion on securities promptly
drew criticism from Chairman Smoot
and Senators Reed, Republican. of
Pennsylvania, and Bingham. Republic
an. of Connecticut. Reed said it would
be breaking faith to issue tax-exempt
bonds and then tax the income from
them
Gray replied the action could be
justified only by the necessity of bal
ancing the budget. He contended it
would tend to prevent great wealth
from fleeing into tax-exempt securities
TO escape the increased SurtaXeS.
Legality Questioned.
Smoot questioned whether the Su-
preme Court would uphold such tax
on income of tax-exempt securities
Gray said he thought it might. His
plan. he said, would apply only to Fed
eral tax-exempt securities.
Its opposition also was expressed to
a general sale tax, manufacturers excise
tax, gasoline tax and tax on bank
checks, all of which have been pro-
posed but not Incorporated in the House
measure.
Import taxes were proposed by the
federation on coffee. tea. spices, tapioca,
Jute, sugar and bananas.
Doubling the second class postage
rates was advocated to yield an esti-
mated $25,000000
Wants Swing Plan Restored.
Gray said the federation hoped the
Swing SurtaN amendment. once written
into the tax bill by the House but
stricken out ON reconsideration, would
be put back into the bill by the Senate
This called for a maximum surtaX OF
65 per cent The SurtaxeS now in the
bill range upward to As per cent.
Gray advocated changing the cor
poration income tax TO a graduated
basis with rates at 10 per cent to 10
per cent Income from the increased
corporation tax thus provided, he estl-
mated would WELD $50,000 600
Regarding this recommendation, he
said
Figures show fairly representative
percentage of the industrial groups in
the United states in 1891 were making
dividends and consequently could stand
Increased taxation"
Meanwhile, Senate Democrats ar
ranged To confer tonight upon the gen.
eral legislative outlook with their dis
ctisSions expected 10 center around the
pending revenue bill and economy
measures
Senator Robinson of Arkansas, the
minority leader, said he might have
statement 60 issue after the conference.
Despite the great number OF spokes-
men to be heard in opposition to the
bills numerous severe imposts, the conf
mittee has agreed definitely to end
hearings IN two weeks. With possibility
Of serious delay in the Senate Chamber
over threatened tariff struggle, the
leaders are desperately anxious to make
possible passage OF this bill before July,
when the aScal year begins.