The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-12-14
Mills Claims Beer
Tax Will Be Short
Secretary Asserts Other Taxa.
ton Necessary For Bal
ancing of Budget
IS NEUTRAL ON PROPOSAL
Believes, However, Increased
Tax on Malt Syrup Would
Be Beneficial

washington. Dec. 14.-(R}-Secre-
tary Mills estimated Wednesday that
the Collier beer bill, If enacted, would
produce only $125, 100000 to $50, 000,-
600 IN revenue in the 1884 fiscal year
and asserted it alone will not pro-
duce the revenue needed to bring
the budget into balance"
Neither approving nor disappearing
the proposal, the treasury head told
the house ways and means commit
tee it was faulty in many particulars
but that the department believed adj
ministration Of the beer section
would be, practicable"-the wine Sec
ton impossible"
Citing the need for additional rev.
enue, Mills urged the committee "tc
take the leadership in promoting 9
non-partisan program" to balance
the budget by "the adoption OF 8
general manufacturers excise tax
He also recommended continuation
Of the one-cent-a-gallon gasoline
tax.
Hoover View Undisclosed
Questioning the secretary about the
beer bill, Representative Rainey o.
Illinois, the committees ranking
Democrat, asked will President Hoo.
yer sign this bill?"
"Oh, Mr.. Rainey," replied Mills with
a shrug, you know no one speaks fol
the president"
Rainey and Mills then launched in.
to heated argument over Mills sug.
gestions and estimates made durins
the last session regarding taxes.
Mills views before the committe,
were interpreted as rejecting thu
attitude of the administration. Pres
ident Hoover has been reported a.
opposed to the modification of tn.
Volstead act at this time and tn
treasury in its recent annual repor
urged sales tax along the lines O
the. proposal defeated in the hous,
last spring.
Democratic sponsors of the Colliel
bill, who see in it a means of cut.
ting down the deficit, have estimated
with tax of IS barrel on beer ane
20 cents gallon on wine, abou
$3.50, 000, 900 would be returned ir
revenue annually.
1.-THE department. believes" Mill.
said, that the administration of the
beer tax would be practicable though
it Is not clear why the distinction
is made between the fermented Ii.
quor covered by the bill and cerea
beverages with less than one-half OF
one percentum of alcohol by volume
the tax on the latter being retained
at the rate Of / IA cents per gal.
lon.
This seems illogical and may
give rise to difficulties of admins.
tration and I think you should con-
slider whether tax-paid beer should
not be distinctively marked by stamp
or otherwise.
Charges Bill Ambiguous
Furthermore, the bill is ambigu-
Gus on the question of whether the
license tax imposed on the whole
saler and retailer of fermented Ii.
quors under the internal revenue
laws applies to the seller of the new
beverage.
The provision, however, relating to
the taxation Of vinous liquors appears
to the treasury department as impos-
Sible OF administration in that it gives
no working definition OF what liquors
are subject to the tax.
LAS to the revenue which might be
expected from the proposed tax on
beer at the rate Of IS per barrel, the
treasury estimates the amount at
$l25. 900 900 to 10000, 900 for the fis-
cal year 1894. If, however. malt syrup
which Is taxed at relatively low rate
under the present law. is subjected to
compensatory tax, the ultimate yield
Of the tax on beer could be increased
somewhat"
States in which Mills said "the i'm
mediate sale of beer is reasonably
certain" were listed as Arizona, Cali
fornia, Maryland, Massachusetts
Michigan, Missouri, Montana, Nevada,
New Jersey, New York, North Dakota,
Oregon. Pennsylvania. Rhode Island
Washington, and Wisconsin.