Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-23
VOTE TOMORROW
DECIDES SALES TAX
Rainey Confident of Victory,
in View of Exemptions,
He Says.
Continued From First Page)

Continued From First Page)
per cent but 1t does lower the exemp-
ton from 100000 to $4,000"
Rainey explained the impression was
gathered because the amendment pro-
posed by Representative Ramseyer, Re-
publican, of Iowa, said the levies pro-
posed were to be lin addition to the
estate tax imposed" by the revenue act
of 1926.
The committee had proposed an in
crease from 20 to 40 per cent in the
maximum rate, the additional 20 per
cent to be supertax, and not shared in
by the States on an 1920 per cent basis
Rainey also said many members
thought the Ramseyer amendment was
As per cent above the 20 per cent in ex-
listing law in view of the Iowan's ex-
PLANTATION that the amendment I offer
does not affect the existing law"
Despite victories by the anti-sales
tax forces on amendments to the meas
ure, the outcome Of the vote is uncer-
tain, with both sides claiming sufficient
strength to win.
When the bill is taken up tomorrow
several votes must intervene before the
choice for or against the sales tax is
exempting food, clothing, medicines,
farm implements and some other classes
OF manufactures on the taxed list as
the bill now stands-are to be passed
upon first. This is the bid OF Acting
Chairman Crisp to square the bill with
as many members as possible by freeing
from the tax burden the necessities OF
life and the poor who must have them.
There will be a decision also on the
amendment of Representative Cullen
Democrat. of New York, to tax 275
beer at the rate of cents a pint. A
point Of order to bar it has been made
by Representative Blanton, Democrat
of Texas, which will have to be ruled
on by Representative Bankhead, Demo-
crat, of Alabama. He, instead OF
Speaker Garner, is occupying the chair
while the House Is considering the BILL
as 1t sits in Committee of the Whole
through the amendment stage.
Sales Tax Foes Stubborn.
It was only after prolonged discus
sion that the opponents Of the sales
levy. led by Representative Rankin,
acceded yesterday to the plea of Acting
Chairman Crisp to bring up the estate
tax and the manufacturers levy for
quick decision.
Crisp had been instructed by the
committee to seek right of way for
determination in order that it might
recommend additional tax levies in
the event the sales levy was rejected.
By agreeing to eliminate the neceSSa-
ries of life, the committee had reduced
from $685. 900, 900 to $460, 900, 900 the
probable yield of the proposal.
1T is to the interest of the country
and to the House that action on these
controversial items be expedited"
Crisp said in explaining that com
promise is impossible" and the issue
could be settled only by a vote.
Rankin insisted estate taxes be re-
considered first. Debate got under
way with Representative Lewis, Demo-
crat, of Maryland, offering his amend
ment, which he said, would return
$6l1 100000 annually. OF this, the
States would get $1O2 OOO, 900: HOW
ever, they would not participate IN
his super-taX rates. -,
Representative Ramseyer, (Repuon-
can. Iowa., explained the inheritance
taxes in England netted $50, 000,O 900 an
nually and were heavier than those
proposed in his amendment. When II
became evident the House was deter
mined upon higher rates than provided
in the bill, the Ways and Means Com
mittee members, including Crisp, voted
for the Ramseyer amendment IN prefer
ence to the Lewis proposal.
Wealth Behind Industry.
In opposing the higher rates, Crisp
said
"Oh. gentlemen, I have no wealth
and neither do I hold brief for the
wealthy, but wealth provides industry
and industry furnishes employment 10
many hundreds of thousands. nope
both amendments will be rejected ana
the committee recommendations De
agreed to-"
Rankin declared the concentration
Of wealth in this country is its great
est menace" and urged adoption OF the
Lewis amendment as a means OF dis
tributing big estates.
In a speech over the radio last hlent'
Representative Dougfton, Democrat
of North Carolina, said the sales TAX
was contrary to, or sins against every
sound principle" Of taxation.
1T is a tax on consumption, tax on
what we spend for the necesSarles OF
life, 1t Is q tax imposed without any
regard or consideration whatever ior
the principle of ability to pay he as
serted "One Of the chief reasons
have always been a Democrat IS pc
cause of the traditional theory oil that
party that taxes should be levied n &C
cordance with this principle.
$50 far as am informed, no Demo
cratic convention, either State or ma
tional, has ever declared In its Pat
F1, ~