Evening star., 1932-05-10

bring s375, ,o00, 900 revenue flowing into
the Treasury and the total might run
rs high as $500, 900, 900.
A: the same time it was learned
list of IA members Of the House who
voted against the manufacturers sales
tax when the revenue bill was before
the House, but vho now regret that
vote, has been shown to leaders OF the
fight to restore the manufacturers tax
in the Senate. While the names of the
House members who apparently now
stand ready to accept a general sales
levy have not been revealed, it was said
on high authority that one OF the
House members so listed was leader
in the fight to defeat the tax when the
bill was before that body.
II the Senate gets into nm ove-
the revenue bill it is believed the Ell
forts to substitute a general manu-
facturers' Excise" tax will be re-
doubled. The Senate supporters OF
this plan declare 1t is no more sales
taY than any of the individual levies
included in the pending bill and Ia
belled Excise" taxes.
Object TO Name Of Tax.
They are Xious TO get away from
the name "sales tax" which they In
sist is a different thing from their
proposed excise tax, since sales tax
could be pyramided and an excise tax
could not. Senator David I. Walsh OF
Massachusetts, who Is to LEAD In the
fight for the substitution OF the gen
eral manufacturers excise tax, Is at
work on the amendment ne VIII pro-
pose for that purpose.
AS the time for opening debate on
the revenue bill approaches, the feeling
of some of the Senators against the
measure as it was finally agreed 10
in the Committee CT Finance, Is run
ming high. Senator Couzens OF Micni-
gan, 1t was reported, was ready TO m
sist that the bill be read from cover
to cover, a long process that is usually
dispensed with by unanimous consent
when the Senate begins consideration
of a bill The first reading, having
been dispensed with, the bill Is then
ready for ame-' ment. The hope was
expressed that the Michigan Senator
would relent and not press his de-
mand for a first reading OF the meas
ure.
Would Amend Dry Law.
Senator Bingham's beer tax proposal
took the form of an amendment to the
yolstead act, changing the alcoholic
content of permissible beverages from
not more than one-half of l per cent
to 4 per cent He pointed out that
tax of S6 a barrel on beer already Is
on the statute books, although 1t Is
in operative because beer Is not per-
nitted. To make this tax effective, he
proposes to amend the dry enforce
ment laws.
The adoption of the beer tax, Sena-
tor Bingham says, would make 1t pos
~ii1 10 o1ir1,irofa from the TpVHY1llA hill
the following taxes now carried in that
measure: All postal increases, first and
second class; taxes on telephone and
telegraph messages; taxes on radio
sets and monographs; to restore the
House normal income tax rates, which
are 2, and per cent as compared
to the 8, 6 and 8 per cent rates of the
Senate committee bill, and to restore
the House rates on automobiles sales.
Tariff Taxes Remain.
A combination Of votes from oil, coal,
lumber and copper producing sections
of the country, in the Senate Finance
Committee, made It possible to retain
In the bill as reported out the so-called
tariff" taxes, levying import duties on
those commodities. Such combi-
nation. If it extends to the entire Sen
ate, may make 1t possible for the re-
tention of these items in the bill as 1t
finally passes. 1t Is to such o compi-
nation Of votes in the Senat that pas
sage of the revenue in the form It has
come from the committee may yet be
due. Supporters of those import taxes
fear II the measure Is tinkered with in
any major particular, their import taxes
may be lost.
Senator Hull, who will take q
leading part In the fight against
the tariff taxes. said he was preparing
a statement which would be submitted
to the Senate either as a minority
report or as an address by himself.
These tariff taxes" said Senator
Hull, will result IN raising the costs
to American consumers by from $780,
600 900 to $500, ,o00, 900. The Govern
from them for they will act as EN-
bargoes. But the American people will
find the cost Of living greatly increased.
These taxes are outrageous and have
been put in the bill by log rolling OF
the worst kind"
The report of the Finance Committee
on the whole bill will be completed and
printed for use Of the Senate by to-
morrow. The committee held hearings
yesterday afternoon and this morning
on the rubber import tax inserted in
tilc JUST DS1OI6 IL WAS w
the Senate. Manufacturers Of rubber
goods protested strongly against the tax.
They will be given a further hearing
tomorrow. Members of the committee
suggested to the manufacturers that an
excise tax on the sales Of rubber goods
might be substituted. To this the man
ufacturers replied they saw no reason
why their industry should be singled
out for such a tax. They said q gen.
eral manufacturers excise or sales tax
would be far preferable.
Oil Tax Termed Crux.
Opponents of the tariff taxes say the
tax on imports of petroleum Is the core
of the situation and that its proponents
obtained aid for the tax from friends
of the coal, copper and lumber import
taxes. The tax on petroleum, they say,
will raise no revenue, and 1t was not
designed TO do so, but merely to act as
an embargo This was made clear by
testimony given by Secretary Mills of
the Treasury when he told the Senate
Finance Committee that the tax would
not raise car fare"
1t is charged, too, that one reason for
backing the tariff items is to destroy
the tariff as an issue in the coming
national campaign, since with Demo-
Gratis supporting such items in the reve-
nue. bill the Democratic party would be
In no position to attack the Republican
tariff laws. Also Republican support of
the import taxes on oil would be calcu-
lated to obtain votes for their ticket in
Kansas, Oklahoma, Texas, California
and other oil-producing States.
Would Raise Oil Prices.
The financial effects of the import tax
on oil. 1t was said, will be merely to
increase the cost to the consumer of
petroleum and its by-products, includ-
ing gasoline, and at the same time
enrich the oil industry. The great cor
porations will be the chief beneficiaries