Evening star., 1932-03-12
GENERAL SALES TAX
PASSAGE ASSURED
BY HOUSE LEADERS
No Material Change Is Ex-
pected in Amendment
to Revenue Bill.
INJURY TO BUSINESS
SEEN IN OTHER PLAN
Substitute Measure Being Prepared
for Special Levies on Luxuries
and Selected Industries.
By the Associated Press.

By the Associated Press.
Now that they have had chance to
size up the turbulent opposition to the
sales tax provision in the revenue bill
House leaders are predicting the meas
ure will be passed substantially un-
changed.
They have not yet completed a poll
of the membership, but it has gone far
enough to convince them, they say
that the hue and cry against this
widely-spread impost on virtually all
manufactured products has not ennsoeo
enough Representatives to wage WIN
ming fight.
Meanwhile, Secretary Mills said the
tax bill was wholly acceptable" to the
Treasury and that he would speak TO-
night over the radio IN support OF the
measure.
balancing the budget is the most i'm
portant matter before the country,
Mills said. THE bill as reported by the
Ways and Means Committee will bal
ance the budget"
After conferring this morning with
Speaker Garner, the Secretary went on
the floor of the House and discussed
the situation with Acting Chairman
Crisp of the Ways and Means Com
nittee. .,-
House leaders are baSing their
chances of success on the appeal 70
reason in their argument that any al
tentative taxation scheme capap!e OF
raising enough money would hurt tne
country's business structure far more
than the general sales tax, and woulo
be more troublesome to more people
and that any not too obnoxious scheme
would fall far short Of balancing the
budget.
Progressive Support Claimed.
However, Representative La Guardia
of New York, a leader among the inde-
nsndents of both parties who style
themselves Frogressives, claims support
of the entire group for the amendment
Nilich will be offered to shift this part
of Tie tax burden to luXurieS, higher
in .crnes and generally to the classes
hc. ing considerably more than the
av--cge wealth
.lps on checks and drafts, con-
t. 5 and deeds ana taxes-on stocGvaao
boaI rfLnsfers and sales, automobiles,
radios monographs, jewelry, perfumes
regis,.e...on Of corporations and incomes
under this amendment, approximately
S518,o0o,o 900 more than drawn from
them by present taxation or by the
pending bill. This would take the place
Of the general sales tax yield OF $685.
600, ,000
The proposal to legalize and tax 2.75
beer is not considered in the running
1t may yield vote along wet-dry lines
but not even its enthusiastic sponsors
are under any illusion that they can
put it across.
Another substitute plan has been pre-
pared by Representative Doughton,
Democrat of North Carolina, and this
Is to be offered soon. 1t involves spe-
cial levies on luxuries and selected in
duStries.
Big Industries Threatened.
Representative Rainey Of Illinois, the
Democratic leader, said today at con-
ference with newspaper men that II
the manufacturers excise tax IS not
accepted by the House direct excise
taxes on big industries will be forced to
enactment"
Every time one of these so-called
patriots make a speech On the foor
against the broad and just manufac-
turers sales tax he burns his bridge
behind him and commits himself to
higher sales tax that will be felt, and
felt keenly, by the people" Rainey said
Whatever happens, the people Of the
country can be assured that this Con-
gress is not going to adjourn until a
revenue bill is passed that will balance
the budget. We know that the manu-
facturerS' sales tax, with the soak the
rich rates on incomes, is the best way.
If the people don't accept that, then
they will have to take the Treasury
proposals, which will be far more bur-
densome"
White House approval of the 81 096,-
100000 measure as drafted by the Ways
and Means Committee was predicted
yesterday by Representative Smell OF
New York, the Republican floor leader
He said the sales tax provision was
more equitable than any substitute
proposition suggested and that it would