Evening star., 1932-03-13
TAX BILL BREAKS
OLD PARTY LINES
Far-Reaching Act Arouses
Turmoil and Tests
Leadership.
BY the Associated Press.

BY the Associated Press
The most far-reaching peace time
revenue bill in American history has
thrown Congress into turmoil, broken
party lines and Sorely tested Demo-
cratic and Republican leadership in
both branches.
The fate of the controversial manu-
factures sales levy that the ST.
096,OO0,000 measure Is built around
and the proposed beer tax, will be de.
termlned this week, so far as the House
is concerned. How far either might go
IN the Senate remains uncertain. but
bitter preliminary jousting. heavy with
political significance, Is indicative of
ruthless battles to come.
Throw Down Challenge.
Deeply entrenched opposition to the
sales tax in the House has been met
by its proponents in three days of
House debate, with questions on how
else to get the money necessary to
balance the 1888 budget and stop the
Government from issuing more bonds.
Although weary, the party leaders
determinedly are carrying on their dis
agreeable task of seeking to place the
bipartisan bill on the statute books in
the belief the immediate burden It
might impose on the people will react
TO good purpose through quick eco
nomic recovery of the Nation.
They have not receded from their
position that the sales tax Is the most
Just and least burdensome of any that
might provide the bulk Of revenue
needed to meet the anticipated Treas
ury deficit Of s1,24l ,0oo, 900.
But both Democratic and Republi-
can sponsors Of the bill have asked its
opponents to choose between the heavy
posed by the Treasury and the Ways
and Means Committee program. No
choice has yet been made.
Vets Press for Vote.
-prohibitionists virtually are
certain to get a vote on the amend
ment to be offered by Representative
Cullen, Democrat. New York, for
s5-a-barrel tax on beer of 2.75 per
tionists are confident it will be de-
feated If put to a vote. although
number Of drys have indicated they
prefer its estimated yield of $780,
100000 to the sales levy.
The Democratic leadership, includ-
ing Speaker Garner and Acting Chair
man Crisp of the Ways and Means
Committee that rejected the amend
ment, have expressed the view that it
could be included in the bill If the
text is such that it does not affect ex-
isting dry laws.
Representative Bankhead, Democrat
of Alabama, selected by Speaker Gar
ner to preside during consideration of
hn hi JvN l,n 1F
House, undoubtedly will be called upon
to rule on whether the proposal can
be inserted in the bill under House
rules.
Speaker Garner and Representative
Smell of New York. the Republican
leader, believe they can muster enough
bipartisan strength to put the bill
through without drastic changes, How
ever, the independents and a eroIn
OF both parties from rural districts
have declared against the sales lew
while others avowedly are against some
phases of the legislation.
Fight Tax on Oil Imports,
New England and Atlantic Seaboard
members are fighting the one-cent-a-
gallon tax on petroleum imports. 9th
ers from California and the Mid-Con-
tlnent petroleum producing States are
opposing the four r-cents-a-gallon lew
on lubricating Oil. '
Efforts are to be made by indenend-
ents to boost the income and sIIrtax
rates on individuals. The bill provides
maximum 40 per cent surtax rate an
incomes IN excess of $1O0, 900, which
with the normal per cent levy brings
the TOTAL 10 40 per cent, excluding eX-
eiiii,tions. They are seeking a 60 per
cent maximum on incomes of s25o nm
and above, which Is equal to the war.
time rate "1
With the surtaxes and income taxes
doubled. but s112, 200, 900 is exnected
in 1888 from the increase. while the
corporate tax boost from II to IA per
cent VIII bring only S2l, 900 oO0
BY doubling the estate tax tn An
per cent maximum and levvinp tor
80 per cent gift tmpost, S35 600 OOO Is
expected An amusement tax Of 10
per cent On admissions of 25 cents and
above is to return SOC, 900 900 on the
OASIS OF treasury estimates.
An excise tax on stock transfers
raised from to cents, is counted on
to yield S28 5000, 900; levies on malt
syrup grape concentrates and wort
$5000O, 900; telephone, telegraph and
radio message taxes, $35, 900 600. i'm
ported oil levy, $5,000,000, and lubri-
eating oil, 5000, 900.
Reductions of s125,000, 900 in the
budget estimates for 1888 and SOS. .t(,1.
900 in the postal deficit also are ex.
pected.