Evening star., 1932-01-04
Taxes and Tariffs.

With the Christmas recess out of the
way, the time has come for showdown
in the House of Representatives on the
problem of increased taxes to meet the
Treasury deficit. 1t is a ticklish ques-
ton, and the Democrats, who are in
charge N the House, realize that fact.
President Hoover and Secretary Of the
Treasury Mellon have submitted their
recommendations for revision of the tax
laws, recommendations with which
many Of the Democratic leaders have
announced a disagreement. However,
the Hoover-Mellon tax program is cal
culated to raise revenue which is vitally
needed, and before the Democrats can
brush the program aside they must offer
a substitute which is at least effective
The Policy. Committee, so-called of the
Democrats in the House and Senate is
seeking to outline a taX-revision plan
which will have the united support Of
the party in both houses of Congress.
The Democratic leaders have baked
at the administration proposal to
lower income tax exemptions so as to
include a greater group Of taxpayers.
They have opposed the proposal to
make the tax revision apply to the in
comes of 1881, and have opposed recon-
mendations for tax levieS on checks,
radios and many other products and
business transactions. None of these
proposals for increased taxation is
popular. No taxes ever are popular. 1t
Is quite naturally the desire of the
Democrats not to arouse the displeasure
of any more voters than they can help.
From present indications the Demo-
cratic tax program will tread as lightly
on their toes as possible. 1t is a Re-
publican deficit, they argue, and the
Republicans should bear the blame for
increased taxes. They could, of course,
go ahead with the administrators pro-
gram and permit it to become law, but
they must make a show Of opposition If
only for political reasons.
One thing appears quite certain,
however, and that is unless an effective
revision of the taxes is made while the
Republicans are in control Of the ad-
ministration, such revision will have
to be when and If the Republicans lose
control of the administration. That
would mean revision of the tax laws
by the Democrats themselves after
they took of1ice-not pleasant prospect
for new administration. On the other
hand, from the point Of view of prac-
teal politics, with the national cam
paign only few months away and an
election next November, the Democrats
might find it more profitable to impress
upon the voters their reluctance to in
crease taxes.
The Democrats Of the House also find
themselves confronted with the tariff
question. They have inveighed against
the tariff law for a couple of years, de-
claring that it was the root Of all evil
although as a matter of fact the fincn-
cial crash came before the tariff law
was enacted. The probabilities are,
AaS"N'NAB NAA1N viz ONhAONl dAo wall JchC
refuge behind the fact that presiden-
tial veto would kill any tariff bill they
might put through Congress, dealing
specifically with tariff duties, and there
fore will not undertake such revision of
the law. The Democrats, however, are
expected to seek TO change the so-called
flexible provision Of the tariff act and
have the Tariff Commission report its
findings to the Congress for action re-
garding increases or reductions in rates
instead Of to the President This was
the proposal over which the Democrats,
aided by the coalitionist Republicans in
the Senate, and the Republicans fought
for weeks during the consideration in
Congress Of the present tariff act They
may also seek some kind Of an interna-
tional agreement on tariffs, for the pur-
pose Of bringing about lower tariff levels
and preventing at least tariff war.
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