Evening star., 1932-12-14

lHE ~ v EN lNu -
just finished reading made - sugges-
calling for one in SO much language.
well, let me make myself clear"
said Mills, pounding his palm with his
fist. II recommend manufacturers
sales tax now to balance the budget.
I think it is the duty Of this committee
to recommend it. hope the commit
tee understands that"
Treadway then said that the manu-
facturers' sales tax, opposed as late
as last March 20 by Speaker Garner"
was defeated by Democratic vote.
There ensued a hot exchange between
Vinson and Treadway on the accuracy
Of dates, and then the questioning
swung back to Mills, but he brushed
aside further queries to declare We
hemently II am working for you, not for
a political party: l want to see sn,s
With a budget that is balanced, or on
the way to be balanced soon."
Cites Dwindllng Incomes.
Mills told the committee he felt the
limit had been reached in taxes on
higher incomes, for "as you know. the
higher incomes are rapidly dlsap-
Il therefore don't think there is any
further faith to be placed in the IN
come tax as a revenue raiser"
He said he believed that If you ADOPT
INV recommendations" there is pos
sibility Of lowering income taxes.
Representative Mccormack, Demo
crat. of Massachusetts, asked now
much have We got to raise to balance
the budget In the fiscal year 1934?"
about 1907, 600, 600 plus what amount
our foreign debtors do not pay" Mills
replied. "The 1907 100000 is based. OF
course, on the continuation OF the i
cent gasoline tax"
why do you recommend the sales
tax and DO not recommend the beer
taxi" asked Representative Doughton.
Explains Beer Tax Stand.
Assuming that the judiciary Com
mittee reports out bill amending the
Volstead law, which is within Its lurls-
dict!on, and it is passed by Congress and
then you ask me how much tax would
place on beer then I would say tnaI
as q revenue measure it Is desirable,
Mills said. -,
but I don't know whether this bill
is constitutional or not. ] don't know
what 2.75 per cent means. don't know
whether it's Intoxicating or not. am
not qualified to pass on social ques-
ton like this, and as Secretary OF the
Treasury have no right to say whether
it is constitutional. In fact, think It's
none of my business"
Representative Estep. Republican. OF
Pennsylvania, asked whether furtner
savings could be made In Government
expenditures.
II think It would be difficult to cut
expenditures any more below the Presl-
dents budget estimates" Mills replied.
Mills said he would recommend the
sales tax as a temporary measure.
Questioned on Malt Tax.
REPRESENTATIVE Ragon, Democrat, OF
Arkansas. requested Mills to make
be put on malt. However, the Treasury
chief said he would rather not make
a fat recommendation. but II the COM
mittee insisted he would.
Treadway asked If the Treasury would
object to placing continuation OF the
1-cent-a gallon gasoline tax on the
! beer bill The gasoline tax expires next
June 80.
THE Treasury" Mills said. sis not
irving to tell this committee how to
write its tax bills, but I think the
whole tax program should be wrapped
up into one bill. think it should all
be Jumped together. I think that the
partys pledge to balance the budget
should go hand in hand with the peer
pledge"
Discusses Sales Tax.
Representative Cullen. Democrat, OF
New York. head of the Tammany dele
CATION. asked Mills what sales tax he
proposed.
"On the basis of present business"
Mills replied. "a 2.25 per cent tax
exempting foods and clothing would
produce S355000,00O.'
Mills said an imposing list OF spe-
cial taxes now in effect could be re-
pealed with the enactment of the gen.
eral sales tax.
He said he opposed the setting up OF
special budget" through the issue OF
bonds and removing from the regular
budget items for public construction.
There were reports recently that
President-elect Roosevelt was giving
considerable study to a proposal under
which self liqhidating construction
projects would be financed by bond
issues.
Drys Heard Yesterday.
Chieftains in the dry cause smashed
| their full force against the Collier beer
bill yesterday before the committee.
They were led by Bishop James Can
non. jr, of the Methodist Episcopal
Church South. who asserted Congress
is without authority to fix the alcoholic
| content of beverages, and they en-
Enthusiastically battered their argument
at the committee despite close question
ing from its members.
Drawing the largest crowd that had
| jammed the big chamber since the
| hearings began last Wednesday with
the vets testifying, the drys put for
! ward Deets Pickett. research secretary
| of the Methodist Board of Temperance,
Prohibition and Public Morals Mrs.
Ella A. Boole. president of the National
! Women's Christian Temperance Union.
and Canon William Sheaffe Chase of
| the International Reform Federation.
Three women were fined $500 at
Gateshead, England. recently for con-
l