The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-03-24
REVENUE PROPOSAL
BEATEN 223 TO 1853
WHEN PARTIES SPLIT
Fierce Debate Precedes Action;
Democrat Leaders Take
Opposite Sides
WAS BASE OF BIG MEASURE
2.25 Per Cent Levy Which Was
to Have Yielded $685.
100000 Removed
WAS BASE OF BIG MEASURE

Washington. March 24.-(P)-The
sales tax was rejected by the house
Thursday after fierce debate which
split both parties and brought an
open dispute on the floor between
Democratic leaders.
The vote, on count by tellers, was
223 to 1853.
AS the house was in committee Of
the whole, no roll call vote was taken.
In the closing moments of debate
two of the Democratic leaders, both
house veterans-Rainey Of Illinois
and Byrns of Tennessee - arrayed
themselves on opposing sides with
Rainey advocating and Byrns oppos-
ing the tax. The Republican leader
ship held firmly for the tax.
The ways and means committee in
a final gesture to save the tax had
written into the bill sweeping exemp-
lions which covered food, clothing
and long list of necessities.
The action removes the 2.25 per
cent levy that originally was slated to
yield $685., 100000. The provis 0 n
formed the base of the measure de-
signed to return sufficient revenue to
balance the 1888 federal budget. Now
another search for revenue to balance
the budget will begin.
Three Weeks Of Debate
Action came after nearly three
weeks of bitter debate and spectacu-
lar scenes in a strife torn house. BIZ
partisan opponents ran rough shod
over their party leaders.
offered by Representative Doughton
3D., N. c., member of the ways
and means committee that drafted
the bill.
Opposition to the sales tax was led
by Doughton, Rankin of Mississippi.
Democrats, and LaGuardia of New
York. Republican independent leader.
1t was the first victory of its kind
in years. The leadership of the house
was crushed. Speaker Garner, Rainey
as the Democratic leader and Rep
resentative Smell OF New York, the
Republican leader, were unable to
muster enough bipartisan support to
put the controverted provision over.
1t means that If the house is to
pass a bill to meet the deficit, addi-
tional revenue amounting to $780,
100000 will have to be raised through
other levies offered as substitutes.
The sales tax opponents won after
boosting income and surtax rates.
estates and disallowing credits to
Americans for taxes paid to foreign
governments. They sent the surtax
to the wartime rates with a SIS per
cent maximum and raised the maxi
mum normal income tax rate to sew
en- per cent.
Raised IS Per Cent
The estate taxes were raised to q
IS per cent maximum on estates in
excess of $10,O00,00O and lowered the
exemption from 100000 to $4,000.
In the senate, Harrison of Mis-
siSsippi argued that enactment Of
the tariff bill, previously passed by
the house. would 60 far to stabilize
such legislation hereafter. The meas
ure would transfer from the presi-
dent to congress the right to pass on
changes recommended by the tariff
commission.
A house committee approved a bill
for leasing Muscle Shoals to private
interests. with government operation
as an alternative il lease could not
be obtained. The vote was 10 to 8.
Before another house committee.
Representative Disney d., Okla.) ac-
cused former Representative O'Con.
nor of having told deliberate, das-
tardly lie."
They appeared before the elections
committee hearing a contest brought
by OConnor, Oklahoma Republican.
A group Of bankers appeared before
senate committee to criticize feat
ures OF the Glass banking reform bill.
One OF the witnesses, Wilson w.
Mills. Detroit banker, said the meas
ure would be Instantaneous to the
banks and the country.