Evening star., 1932-03-18
La Guardia Amendment Ac-
cepted to Boost Rates of
$4,000 Earnings.
COMMITTEE TURNS DOWN
PROPOSED COPPER TARIFF
Change Leaves $11,Ooo,ooo in
Revenue to Be Raised From
Some Other Source.

BY the Associated Press.
The wartime surtax rates on in
comes of 100000 and over were
forced into the new revenue bill to-
day in the House
Opponents of the sales tax succeeded
today in putting into the new revenue
raising bill a proposal to dig more deep
1y into the incomes of the wealthy thar
the House Ways and Means COMMITTEES
had proposed.
The House accepted amendments BY
Representative La Guardia, Republican
of New York, leader of the independ.
ents opposing the sales tax, which
would increase the rates upon incomes
of more than $4,000 year to per cent
from the present per cent. The com.
mittee had recommended that these b;
taxed per cent.
The House also approved increase.
from II per cent to per cen. on in.
comes of $4,000, and an increase from
3 per cent to per cent on the Seconc
$4,000, as recommended by the com.
Inittee.
Acting Chairman Crisp estimated i
would raise 100000 900 in a full cal
endar year.
Drop Tax on Copper.
The action was taken shortly aftel
the House began reading the bill fol
amendment.
A little earlier the Ways and Mean,
Committee had decided not to impose
tax on copper imports as agreed upor
yesterday, because such a tax woulc
necessitate the revision of number
of tariff schedules This decision
leaves s11 .000, 900, of revenue yet to be
provided for If the bill is to raise the
amount the committee estimates viii
be necessary to balance the budget
After the rapid-fire debate which led
to House acceptance of the La Guardia
amendments increasing rates on in
comes above $1,000 from to Z per
cent instead of to per cent as pro-
posed by the committee, the House
moved into the surtax section of the
measure.
Representative Swing, Republican,
California, proposed an amendment to
restore the War-tinae surtax rates on in
comes exceeding 100000, ranging as
high as IS per cent on incomes of $5,-
000,000 and over.
The committee proposed an increase
in surtax rates from 20 to 40 per cent
on incomes in excess Of 100000.
Swings amendment would begin
with 40 per cent on 100000 incomes
and is graduated up to SO per cent on
$500, 900.
Liquor Tax Rejected.
The committee earlier turned down a
proposal of Representative Dickinson
Democrat, Missouri. to increase the taS
on barrel of medicinal liquor by S.
Crisp said the committee did not wan
to get into any more prohibition prob
lens.
Representative Rainey told the House
late yesterday if the budget is not bal
anced this country will experience the
worst panic in the history of the world
THE Governments credit is de.
stroyed," he said. "At the present tint
this great corporation, with almost un-
limited wealth, depleted, but artificially
depleted. is bankrupt"
He added that the manufacturers
sales tax was the fair and just way II
meet the situation,
Rainey assailed those whom he termed
''inyisible lobbyists" He mentioned ir
this connection J. A. Arnold of this city
head Of the American Taxpayers
League, adding that their methods were
10 SEND letters 10 constituents OF Con-
gressmen urging them to protest certain
taxes or tariffs.
Arnold was scored by the Senat'
Lobby Committee in an investigation il
1880.
Hits Illinois Group.
Rainey charged that the Illinois
Manufacturers Association was lobby
ing against the sales tax, while Edward
N. Hurley of Chicago was in favor of 1t
Rainey, asked whether it was neces
sary to balance the budget or whethe
a substitute could not be found, replies
that Chicago had found way" to ge
along without forcing the payment O
taxes. AS a result, that city owes tn
State $4,000, ,000 he said, which "likel
will never be collected"
The Illinois Manufacturers Associa
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