Evening star., 1932-05-01
SMOOT ASKS DATA
ON REVENUE BILL
Calls for Figures as TO lust
How Much Each Item
Will Raise.

Confronted with controversies over
the stock transfer tax, the general sales
tax, tariff items and other problems
next week, the Senate Finance Com
mittee marked time yesterday.
Because of the confusion and un-
certainty as to the amount Of revenue
which the bill would raise as it has
been changed, Senator Reed Smoot,
chairman of the committee, asked the
Treasury Department to furnish eSti-
mates as to just what each one of the
items thus far agreed on in committee
would yield. Senator Smoot indicated
he did not know how the bill stood
with respect to production of revenue
and that the rest of the committee was
also at sea. The Treasury estimates, it
is promised. will be in the hands of
the committee Monday.
One of the important features of the
bill yet to be passed on by the commit
tee Is the stock transfer tax. This
amounts to cents per share, but there
Is a proviso that in no case shall the
tax be less than one-fourth of l per
cent OF the selling price of the share.
Tax Called Hardship.
Richard S. Whitney, president of the
New York Stock Exchange, in testi-
mony before the Finance Committee
declared this tax would be hardship
on the security markets. 1ntimations
have gone out that the tax might force
the stock exchanges to move to Canada.
Predictions are that the committee
will provide for a substantial increase
in the stock transfer tax over present
law, but that it may reduce the House
rate. On the other hand, it is also
predicted that when the bill reaches the
floor of the Senate there will be a de-
termined effort to keep the House stock
transfer rates. An effort to impose an
additional tax on short selling Is also
not unlikely.
Senator David A. Reed, Republican,
of Pennsylvania is planning a strong
in committee, but defeat Of this propo-
sition is looked on as certain.
Outcome Of the renewed fight in COM
mittee over tariff items is uncertain.
Efforts will be made to effect a COM
bination which will support import
taxes on coal, oil. copper, lumber and,
added to these, tax on rubber to raise
$50, 900, 900. In any event, regardless
of the action Of the committee. the
combination of Senators who favor
tariffs in the tax bill will be powerful
when it reaches the floor.
Racing Tax Proposed.
Senator Jesse H Metcah, Repub-
lican, of Rhode Island was revealed
yesterday as the member of the COM
mittee who first proposed the tax of
10 per cent on pari mutuel race track
tickets. expected to raise S25.000.000
and TO be paid by the bettors. Senator
Smoot offered the motion for it in COM
mittee, but Senator Metcalf is credited
with the real authorship of it so far as
the committee was concerned.
Such a tax was proposed, however,
by William A. Brady, New York theatri-
cal producer, when he protested to the
committee some days ago against the
admissions tax on the legitimate theater.
Senator Metcalf was also sponsor for
the increased tax on yachts, put into
the bill Friday, though he is himself
the owner of one.
Proponents of tax on iegalized beer
professed yesterday to take renewed
heart by reason of the action of the FL
nance Committee in increasing the tax
on brewers wort to 10 cents gallon,
as against cents in the House bill,
and also increasing the tax on malt
sirup to A cents a gallon from IS,
while increasing the tax on grape con-
centrate to ~ cents a gallon from 40
cents.
Would Provide Beer.
Some estimates are that these changes
will add $75 5000 900 to the burdens of
the makers of home brew and home
made wine.
In order to be consistent, it is the
argument of Senator Hiram Bingham
and other proponents of tax on legal
lied beer that the committee and the
Senate should now take the next step
and provide for the manufacture of
beer and beer tax, which would raise
hundreds of millions of dollars and bal
ance the budget.
While the fight will be made in the
Senate for the beer tax, it is certain fail
and will be interesting chiefly as a
matter of putting Senators on record
on the issue.