The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-05
TAX PROBLEM
BIGGEST ISSUE
FOR CONGRESS
Crushing Deficit Will Rule
All Legislative Steps
During Session.
SPLIT ON BEER INCOME
Three Factions to Dominate
Scene in SkirmiSheS
Over Budget.
BY MARSHALL MNEIL
Times staff Writer

WASHINGTON, Dec. 5.-Con-
fronted with a prospective five bill
lion dollar three-year treasury
deficit, congress convened today to
tussle with the tax problem and
balance the budget before it ad-
journs March 4.
No other issue is more important,
for it includes not only controlling
phases of the prohibition and all
of the economy issues, but possibly
the very credit OF the country.
The treasury deficit was approx
mately 1903, 100000 for the fiscal
year 1881. For the fiscal year 1892
it approached 50,00O,OO00. For
the present fiscal year, in the face
of much heavier taxation, the de-
felt is progressing at a 100000, 900
rate. The total represents about
one-eighth of the money cost to us
of the World war.
Beer Hearing Is Key
The tax issue, it appears now. will
take command of the legislative
scene during this first week of the
session, not only because of the i'm
pending presidential budget mes
sage and the treaSury's report, but
also because the house ways and
means committee Wednesday will
start its beer tax hearings.
Unless the committee moves in a
new course, its beer hearings will
open wide the whole. controversy of
new levies, with a sharp break be-
tween these three factions:
l. The group tht wants beer legal
lied and taxed to raise sufficient
revenue to reduce the current deficit
to bearable proportions, the diff
ference to be made up of drastic
economies and borrowings, in
anticipation of greatly increased
liquor tax receipts when the
eighteenth amendment is repealed.
This group is made up, generally, of
the "old line" vets.
FarCy Lines Are Cut
2. The group that opposes modi-
f1cation of the Volstead act, sees
little hope of getting quick repeal
of the eighteenth amendment, and
wants to levy a general manutac-
turers sales tax on everything but
necessities. This group includes
Hoover Republicans and some
Democratic standpat drys from the
south.
3. The group that wants both the
beer tax and the sales tax. arguing
the former will not raise the reve-
nue. expected, and that only the
addition of the latter will preserve
the country's credit. This group
cuts across party and prohibition
lines.
1t has been limited that the
Hoover message will advocate the
sales tax which the President in
person requested of the senate last
session..
And it also has been indicated
that some of the Democratic house
leaders who permitted the sales tax
to come from the ways and means
committee last session favor the
beer-sales tax plan.
Roosevelt Support Seen
The first group, at least now, is
regarded as having the support of
President-E Elect Roosevelt, for it was
after a conference with him that
Senator Joseph T. Robinson of
Arkansas, the Democratic leader,
voiced the hope that taxes other
than on beer could be avoided this
session.
Although Democrats actually will
control the house, and will be re-
garded as responsible for legislation
in the senate, they have not yet
a definite tax program.
Robinson has promised that this
will be considered by informal COM
mittees in the senate, but whether
Speaker John N. Garner and other
Democratic leaders of the house will
join in a co-ordinated program still
is in doubt.