Evening star., 1932-05-05
Senate Committee Called
Back to Hunt New Reve-
nue. Sources.
FURTHER REVERSALS
IN RATES RIDICULED
Even Higher Increases in Income
Tax Suggested After Survey
of Legislation.
By the Associated Press.

BY the Associated Press.
The revised revenue bill today was
declared 100000 900 short of the goal
OF balancing the budget by Chairman
Smoot of the Senate Finance Commit
tee and the committe was called back to
look for new taxes
Smoot made his estimate after the
committee had applied the brakes To
further reversals in rates and had set
| tied back to learn from the Treasury
just what the bill did.
Income Tax Boost Seen.
He pointed to even higher increases
in the income taxes as one way of
finding the additional 100000 600
which appeared to be necessary after
the first survey of the rewritten legis-
| lation
Undersecretary Of the Treasury Bal
lantine emerged from the executive
! session Of the committee cautious about
/ making an estimate, but he intimated
more revenue would have to be found.
He agreed the Senate Committee bill
raised about a billion dollars. prac-
tlcally the amount provided by the
House, but said even more money was
required.
At the outset of today's session. the
committee put an end to its merry-go-
round on the tax bill. laughed down
| further proposals for reversals of previ-
Gus decisions and prepared TO report
out the measure.
Then, with the bill apparently fin
ished, the committee listened to an ex-
planation from Ballantine of what the
bill would yield in revenue.
Sponsors Lacking.
The bill was in such shape that no
one apparently sponsored or favored it.
Senator Walsh, Democrat, of Mas
sachusetts, summed up the situation,
saying Action forced the tariff coali-
ton to assume responsibility for the
measure.
There is some heavy politics going
on now" he said. mo one wants to be
blamed for the tax-increasing legisla-
ton. Every one wants to see it enacted.
There are three groups Of thought
in the committee and in the Senate.
First, those who think the revenue
necessary to balance the budget, in ad-
ditlon to income taxes, corporate taxes
and gift and estate taxes. should come
from widespread distribution of So
called nuisance, admission and luxury
taxes.
Second, those who favor instead of
nuisance and luxury taxes a manu-
facturers sales tax, and third, those
who support combination of tariff
duties and luxury taxes"
Leadership Needed.
"It is becoming apparent that g.
situation may arise where no tax bill
may pass the Senate unless one of
these groups assumes leadership"
Walsh said. up to the present time
the leadership has been directed by
those who sought to draft the bill along
the lines of the House BILL which
made up the balance of the deficit
through nuisance and luxury taxes.
THE action of the Senate Finance
Committee in including tariff duties has
shifted the leadership from the first
group to the so-called tariff group
1T looks to me now as if the fate of
the bill depends upon shaping the bill
by the tariff protectionist group and
that they will have to pick up the nee
essary votes and assume the leadership"
Tariff Levies Restored.
The committee yesterday put back
into the measure four tariff levies and
reversed its decision on a siZable list
of other items. Then the bill was
turned over to Treasury experts for re-
figuring.
Earlier at yesterdays session the
committee had voted to make all the
excise taxes permanent.
The tariffs written into the bill COW
cred lumber, copper, coal and OIL Cop
per imports will be taxed 4 cents a
pound: lumber, So thousand feet; oil,
one-half cent gallon, with propor-
tionate levies on refined and by-prod-
ucts, while the coal tax was set at 81.
The other changes included elimina-
tion of the jewelry tax; restoration OF
an extra ~ per cent on consolidated
corporation returns; reductions in the
rates on grape concentrates, grape juice,
fountain sirups and oil pipe line taxes,
and extension of 2-cent tax to all
bank checks
The oil duty was cut down from the
cent a gallon provided by the House
to y cent. The coal tax provided by
the House was retained, II to 8.
Senator La Toilette of Wisconsin, Re
publican independent. voted against all
the import duties. Senator Connally,
Democrat, of Texas voted for all.
Senator Reed last night estimated
the Senate bill now provides S300,0O0,-
900 less than the billion dollars carried
by the House measure. This estimate
was disputed