Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-04
NEW TAX MEASURE
IS CALLED DRASTIC
Washington Surprised and
Pleased at Efforts to
Balance Budget.
BY. MARK SULLIVAN.

The new tax lay completed by the
House Ways and Means Committee and
soon to become familiar to the public
constitutes, on the whole, the most
drastic taxation by far ever levied by
| the American Government. The in
ciusion of a general sales tax having so
few exceptions as to be practically uni
versal is enough alone to make the bill
unique. The attitude of Washington to-
ward it is one Of surprise and satisfac-
ton, because the bill represents almost
| unbelievable courage in attacking the
problem of balancing the budget.
When Congress met in December
practically no one believed that there
was any possibility of Congress adopt
i ing sales tax. What has happened is
that the Democratic leaders, especially
the acting chairman of the Ways and
Means Committee, Charles R. Crisp of
Georgia, looked the Nations situation
scuarely in the face and brought them
selves to a determination to balance the
national budget. Within that broad de-
c1sion the first half consists of de-
termination to lay taxes that are heavy
and spread over a broader surface than
any Federal tax ever adopted before.
MIR. Crisp announced this determination
In remarkable speech to the House in
which his words and manner revealed
his understanding of the seriousness of
the policy and perhaps also the diff
| Guilty Of getting it adopted He APP
pealed to his party and to the country
to grid yourselves with stamina, with
backbone and with courage to meet this
emergency"
Approval Assured.
Representative Crisp recognized that
no amount of raising the rates on large
incomes would be enough, although, of
course, these rates are raised Going In
head-on opposition to popular fad
lacy, he declared frankly that sit is very
easy to say, Soak the rich but you
cannot put tax on incomes which will
produce the amount necessary to bal
ance the budget"
The approving reception given Crisp's
speech made it certain the party would
adopt the policy which he laid down.
Parentheticall, during the 20 days since
Cr1sp'S speech Government bonds have
risen some S points in price, due in
part, presumably, to the Democrats de-
termination to balance the budget and
to the confidence this inspired.
The first half of balancing the bud
get the laying of heavy and broad
taxes, is accepted by Democrats and
AsSPaNAASoAio Will d IIldG
seems to insure its enactment 1t is
recognized, however, that no degree of
taxation can be enough alone to bal
ance budget in which the prospective
deficit is upward of two billion dollars,
hence the Democrats are at this mo-
ment facing the second part of bal
ancing the budget, which consists of re-
ductng Government expenditures, re-
duclng appropriations and avoiding new
appropriations. Toward this ideal lead
ing Democrats have made extreme ad-
vanceS in willingness. There is some
assent to cutting Government salaries
above a certain point. There is even
talk of looping $100,000,000 off the
s. eco, 900 expenses of the Veterans
Bureau by canceling Implications and
by other economies.
Must Avoid New Costs.
The outstanding necessity in the pro-
gram Of economy is, Of course, the
avoidance of new appropriations. The
Democrats and almost to an equal de-
gree the Republicans in the House have
taken step in the opposite direction
by passing an appropriation of $132,-
100000 for road building. The larger
problem ahead, however, lies in a pro-
posal to make Government bond issue
OF one, two or three billion dollars, to
be loaned to States, cities and perhaps
private corporations for a broad pro-
gram OF public and semi-public works
to relieve unemployment This Is en-
ergetically favored by some Democratic
leaders, opposed by others. Those IA
voring it are chiefly the ones rejecting
large cities where unemployment is Sc
we're. Ex-Gov. Smith believes in it
strongly.
1t seems now likely that the Demo-
Gratis, controlling the House, will adopt
and the Republicans will support a pol
| icy of keeping appropriations down as
drastically as they have already acted
in making taxes ADEQUATE