The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-03-12
POLL IN HOUSE
HINTS DEFEAT
OF SALES TAX
Leaders Decide to Let De-
bate Run On Until Things
Simmer Down.
PROTESTS FLOOD MAIL
Scores of LoophoIeS Found
by Manufacturers; Offer
Alternate Proposals.
BY PAUL r. MALLON
United Press staff Correspondent

WASHINGTON, March H.
Democratic Floor Leader Henry T..
Rainey announced today that his
poll of the house indicates defeat
of the sales tax.
The situation disclosed by the
poll caused house leaders to decide
against closing general debate to-
day on the $1,O96,OOO, 900 tax bill.
The sales tax of "a per cent on
manufactured goods is the heart of
the measure as drafted, and is eS-
timated to raise 595,000000.
Leaders decided to let debate run
On into next week until things SIM
mer down. They are still hopeful
that the opposition will exhaust it
self in exploring alternative taxes,
and finally will return to the sales
tax as the most practical means of
balancing the budget.
Leaders Are Downcast
Rainey did not tabulate any
numerical standing on the sales tax,
but the results of his survey we're
definite enough to make all the
house leaders downcast-Speaker
Garner, Rainey, Acting Chairman
Crisp of the ways and means COM
mittee and Republican Floor Chief
Smell.
Crisp said there are apparently
more Republicans for the sales tax
now than Democrats.
1.-THE opposition has exceeded our
expectations" he said.
The opposition was being Stimu-
lated by protests coming in with
every mail. These influential. no
tees from constituents were chang
ing votes each hour while routine
debate proceeded into its third day
on the floor.
The leaders are making no effort
to whip their forces into line. The
unusual contest has passed that
stage. They merely are trying to
find out whether a majority of the
house will stand for the imposition
of the "a per cent levy on practi-
cally all manufactured products.
Manufacturers Find LOophOleS
Manufacturers have discovered
scores of loopholeS.
Big lumber men contend it will
let their small competitors who do
a business of less than $4,000 a
year escape the tax, thereby per-
hitting them to undersell.
Gamers claim there is no way for
them to absorb the tax.
Irrigation farmers, who use cleo
tricity to pump water, protest it will
do them unjust damage.
Livestock men say that while
meat is exempt, lard, hides and 9TH
er by-products are not, which will
still influence the price of beeves.
Three alternate plans have been
offered by the opposition.
Three Alternative Plans
The first, by Representative Flo
relic H. La Guardia (Rep., N. ",
proposes to raise $400 100000 by
heavy taxes on luxurieS. The
amount, he agrees, is insufficient
to balance the budget. He con-
tends it is not necessary to balance
to a dollar.
The second plan would contem-
plate an increase of income surtaxes
to the so per cent maximum of
wartime, and heavy luxury taxes.
This was proposed by Representative
Thomas r. Anllie (Rep, Wis.,, and
Paul j. Kvale, (Farmer-Labor,
Mimi
The third plan, by Representative
Robert L. Doughton Dem., N. c.
calls for an excess profits tax to
raise $168,OO0,OO0, luxury taxes to
bring 100000, and increase of
postal rates. He would tax furs.
jewelry, cosmetics, suits costing more
than $40 and shoes and hats over SIS.