Evening star., 1932-03-21
FOOD AND CLOTHES
MAY Be EXEMPTED
IN SALES TAX PLAN
Committee Considers Action
as Means of Quieting
Opposition.
LEVY ON OIL IMPORTS
ALSO TO BE CONTESTED
La Guardia Willing to Cease Fight
on Manufactures Levy if Amend
ments Are Voted.
BY G. GOULD LINCOLN.

The tax problem confronting the
House today remained as tangled as
ever.
The Ways and Means Committee, au-
thor of the pending tax bill. met in
executive session today to consider fur
ther exemptions to the manufacturers
sales tax.
A proposal to eliminate from the
manufactures sales tax all foodstuffs
and wearing apparel and ethical
medicines was pending before the COM
mittee for action when the COMMITTEES
took a recess at noon until 2 pm.
Representative La Guardia Of New
York, Progressive Republican, who has
been leading the fight against the
manufacturers sales tax, said later that
if all foodstuffs, wearing apparel and
"ethical' medicines were exempt from
the manufacturers sales tax, such ac-
tion would remove his fundamental OBJ
jections to the manufacturers tax.
Rumors spread that these proposed
exemptions might ultimately be basis
upon which the warning factions OF
the House could reach an agreement on
the tax bills.
While the Ways and Means Commit
tee was meeting group OF House mem
bers from the Atlantic Coast States
met in the Office of Representative Lin
thicum of Maryland to discuss ways
and means of eliminating from the tax
bill the tax on imported crude oils and
gasoline. 1t was determined that Rep
resentative Mccormack OF MasSacnu-
sets present an amendment to the tax
bill on the floor to strike out this tax
Mills Hits La Guardia Plan.
A letter from Secretary Mills of the
Treasury Department declared that the
tax proposals offered by Representative
La Guardia of New York, Republican
Progressive. who is leading the revolt in
TIE House against the tax bill approved
BIZ the Ways and Means Committee,
would fall short by $3.50, 600, 900 OF the
re enue needed by the Government.
The Treasury Department estimate OF
the increased revenue to be derived @ars
der the La Guardia and Swing amend
ments increasing normal Surtax rates
of the income tax is only about $780,
00o, 1000, although La Guardia ana MS
supporters have claimed that these
amendments would increase the revenue
by $l50.000, 900 or more.
Speaker Garner was asked TO-DAY
whether he would take the floor and
discuss the tax bill situation in an
effort to win the Democratic opponents
back into allegiance to the Democratic
leadership of the House.
III determine that as we go along,
said the Speaker.
Both Sides Favor Exemptions.
Acting Chairman Crisp Of the House
WAYS and Means Committee declined
to reveal the source of the proposal to
exempt all foodstuffs and wearing ap-
parel from the operation Of the manu-
facturers' tax He indicated. however,
that it came from both sides.
AS the bill now stands, 1t already ex-
empts from the operation of the manu-
facturers' sales tax a great quantity OF
foodstuffs. The Treasury Department
estimates that if all foodstuffs are to
be exempt another $60,000,000 OF rev.
enue will be Topped off. The depart
ments estimate of the revenue that
will be lost by exempting all wearing
apparel from the manufacturers tax is
SIS, 1000 900. The proposal also includes
exempting all ethical medicines from
this tax This would reduce the rev.
enue by S10,00o,000. The committee
today agreed to a list of exemptions
recommended by a subcommittee, in
Guiding ice cream and matted milk,
which was made public yesterday. The
estimated loss in revenue from these
exemptions was S10000,00
Should the proposals for the eX-
emption of all foodstuffs, wearing ap-
parel and ethical medicines be adopted,
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