The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-28
SHOWDOWN TO
COME ON SALES
TAX NEXT WEEK
Open Debate on Proposal
May Be Begun in
Senate Today.

BIZ Scripps-Hotcard Newspaper Alliance
WASHINGTON, May 28.-The
sales tax fight moved on under cover
in the senate today, with the pros
pect that the showdown vote would
come early next week.
The open debate on this proposal
to levy a general consumption tax
may begin today, but its sponsor,
Senator David I. Walsh Dem,
Mass.), does not intend to bring up
his amendment until all the special
excise taxes have been disposed Of.
Meanwhile, proponents and OPP
ponents of the proposed Ia per cent
general sales tax worked avidly for
/ votes.
Fair estimates are that from 38 TO
40 votes for the sales tax now are
available. This is less than enough
to pass it.
other support may be obtained in
the suggested compromise for reim-
position Of high 1922 income tax
rates, along with l per cent sales
tax.
Deficit Still Is Left
The four-way tariff trade, which
wrote four protective duties on cop
per, coal, lumber and oil into the
bill, also may bring some support
to the sales tax.
Possibility Of the administration
indirectly taking hand to support
the sales tax still is discussed. This
support may come by a treasury
announcement that an additional
deficit is in prospect.
But this deficit would have to at
tain large proportions-say as much
as $500, O0o, 900 to $500, 900, O00-before
insertion of the sales tax into the
revenue bill is assured.
The senate bill today still leaves a
deficit Of approximately S60000,0O0.
This was caused by the reductions
in the taxes on passenger automo-
biles and trucks, and the raising OF
the exemptions to the theater adj
missions tax.
This deficit, while pleasing to
sales tax advocates, can be more
than met by reimposition Of the
1922 income taxes, which are
estimated to yield from 100000, 600
to SI3c, 100000 additional revenue.
Job Not Nearly Done
The senate Friday approved: An
increase in first and second class
postage rates, the 10 per cent tax
on furs, and the elimination Of the
provision permitting devaluation OF
estates of persons who died during
the boom years. It also agreed to
the cent tax on all checks. A S.
exemption to this tax was defeated
by a tie vote, 1899.
But despite its fast pace Of the
last two days, the senate is nowhere
near completion Of the bill.
It still must consider the tax on
salaries and bonuses to officers OF
corporations in excess of $4,000 an
nually; the limitation of credits for
stock losses to the amount of stock
gains; the credit against gross in
come in the case of life insurance
companies for legal reserve; the ex-
emption from the corporation tax Of
panies of various classes; the re-
duced tax on stock and bond trans
fers, and tax on transportation Of oil
by pipeline.
1t will have to dispose Of a motion
to reconsider votes whereby re-
imposition of the 1918 income taxes
was defeated; reimposition Of the
1922 income tax rates was de-
feated; the vote which included the
4 cents per gallon tax on lubricating
oil was included in the bill; the tax
on brewers wort and malt; all of
the tariffs, and the tax on COM
modify exchange transactions.
The stock transfers tax is ex-
pected to occupy the attention of
the senate at the outset today.