Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-19
The Tax Bill Revolt.

Panicky House members are UNDER
taking to destroy a carefully formulated
tax bill, designed to wipe out the deficit
In the Treasury and to balance the Gov
ernment's budget. They believe they
are doing a popular popular with
the voters. Their demand is that the
tax burden shall be placed on the
shoulders Of those best able to bear It,,
the wealthy. With that contention
there can be no quarrel provided by
such course it will be possible to raise
the necessary revenue to balance the
budget and restore the credit of the
Government to- its high state Of a year
or two ago. There Is, grave reason to
doubt the efficacy of the amendments
adopted in the House yesterday, in
creasing the surtaxes on incomes to the
wartime rates, with IS per cent as the
maximum, and an increase to per
| cent of the normal tax rate on incomes
above IS, 900. Big incomes In this coun-
try have shrunk greatly during the de-
preston. The estimate made Is that
these changes in the income tax rates
will bring in an additional $15o,00o,0OO.
They may not yield that amount, but
considerably less.
These changes in the income tax
rates are intended as substitute In
part for the so-called sales tax"
tax on manufacturers of 2.25 per cent
on their sales. Other amendments Will
be offered by opponents Of the manu-
facturers' tax designed to help make
up the necessary revenue. These OPP
ponents of the manufacturers tax are
intent upon wiping the sales tax OIL
the slate. They believe that such
course will be popular. The manufac-
turers' sales tax, 1t has been estimated,
will bring in q total Of $685., 900 900, or
more than one-half Of the amount pro-
posed to be raised by the entire tax
bill. The manufacturers tax is sure
producer Of revenue. The increases
proposed now In income tax rates are
by no means sure.
The manufacturers tax falls On all
kinds Of producers, except the farmers
and the producers Of foodstuffs and
the producers Of certain other "neces-
stiles" It is equitable in that 1t does
not single out one producer for either
favors or tax burdens. The opponents
Of the general manufacturers sales tax,
however, win seek TO select number
Of individual producers and impose on
them the tax burdens through so-called
excise taxes. These taxes are sales
taxes" too, just as much as the pro-
posed manufacturers tax, but they are
sugar coated with q different name.
The country has had SALES taxes" for
years, imposed on various industries,
as, for example, the, tobacco industry.
But they have been called excise taxes.
In Committee of the Whole, the House
yesterday OVERRIDE its leaders and start
ed to tear to shreds the tax bill report
ed by the ways and Means Committee
with the support of both Democrats
and Republicans. The votes, taken by d.
, vision and tellerS, showed less than half
or little more than half the House men,
bership voting. But in the turmoil 1t
was evident that the revolt against
House leadership came principally from
the Democratic side Of the chamber.
Where the revolt will end remains to
be seen. The Democratic leadership in
/ the House has worked smoothly up to
the present time, gaining the Demo-
Gratis. and particularly Speaker Garner,
much credit in the country. The dan
ger to the Democratic cause now lies
in disintegration Of the House Organi-
cations control.
The need Of balancing the budget and
wiping out the deficit is clear to the
entire country. If this end is to be
/ jeopardized for the sake Of vote-seeking
members OF the House it is not likely
I that these members will. in the end,
obtain the votes for which they hope.
Suggesting that Vice President Curtis
retire from the ticket sounds like try