The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-18
WOodin and Budget Chief
First Witnesses at
House Hearing.
NEW TAXES DISCUSSED
Work for Hundreds of
Thousands of Unemployed
Is ViSioned.
BY WILLIAM +. KERRY,
United Press St2n Correspondent

President Roosevelt's "re-em-
plOyment' program today be-
gan its swift legislative jour
ney, with Treasury Secretary
Woodin and Budget Director
Douglas representing the adj
ministratiOn at open hearings
before the house ways and
means committee.
The cabinet officer and budget
director were present to discuss new
taxation needed to finance the So
300,0000O0 public works section Of
the industrial plan.
The remainder of the omnibus bill
has been framed by the White
House, including the vital sections
moblizing private industries on a
war time basis.
OOIk IOI MANY lHOuSdH1S
Public works are expected to
create work for hundreds of thou
sands Of unemployed
Shorter work hours, minimum
wages, and production geared to de
mand are relied upon to provide
jobs for many more.
AS the hearings began, Chairman
Doughton of the committee called
upon the membership to discard
partisanship, and join in the adj
ministration's effort to revive bust
ness and employment.
On motion CT Representative Ra-
gon Dem, Ark the committee
adopted a resolution creating a sub
committee to study the antitrust
law suspensions provided in the bill
Ragon was named chairman.
Secretary Woodin was the first
witness called. He introduced Budget
Director Douglas. co-author of the
bill and chief spokesman of the
administration.
Tax Plans Presented
Douglas, on behalf of the admins
tration. presented four alternative
tax programs, including a general
manufacturers sales tax, to finance
the huge public recovery bill. A
general sales tax of is per cent,
Douglas said, would raise $214,-
000 900; while | is levy would
give new revenue of $229,OO0,0O0.
Alternative tax programs includ-
ed one increasing the normal in
come tax rates from to per cent
and from to 10 per cent; with
drawing exemption on dividend in
come on which taxes are paid at
source, and imposition of new ex-
CiSeS. This. Douglas said, would
yield total of $224.OO0 900 in new
revenues but might violate any
tariff truce"
Boost Income Tax Rates
A third plan of taxation included
the same increase in income taxes
and corporation taxes, but included
in lieu Of the excuses a r, OF cent
additional levy on gasoline to raise
$4,000 900 or a total of 1921 900 900
A fourth alternative provided for
increased normal income tax rate
from 4 to per cent and from 8 to
II per cent, and elimination of
present exemptions on dividends tax
paid at the source. Thursday pro-
gram also included a scent tax on
telephone tolls from IS to so cents
to raise $4,000 900. and an admission
tax beginning at 20 cents to produce
$25, 100000
Provides Decent Wages
Douglas. young ex-congress-
man. who has risen to a dominant
position of influence in the new ad-
ministration, briefly summarized
the presidential program as de-
signed to stabilize industry"
The sections dealing with control
of production would provide decent
wages and cut throat competi-
ton" and "Sweat-Shop" conditions,
he said
The bill in its present form, he
added. would control only inter
state commerce. Intrastato control
would be provided by state action.
Douglas stressed the provision al
lowing the President to license pro-
ducers.
This he said, was the sanction"
of the measure which in rare
cases would enable the admin
istration to enforce codes of fair
competition" for controlling pro-
duction, minimum wages, and
shorter hours of work
Applies to All Industry
The sections of control of bust
ness, Douglas said, were far reach
ing in application.
In response TO question by
Representative Lewis, Dem. Md,
the budget director said he be
lieved" it would apply to wholesale
houses. banks, etc. as well as in
duStrial plants and mines.
Representative McClintic ,Dem..
Okla asked Douglas whether in
the event the oil industry failed to
agree TO limit production The bill
gave the federal government power
10 prevent shipments in interstate
commerce.
Il believe it gives that power" the
budget director answered. The bill
is designed to compel the 10 per
cent wilful minority to cooperate.
Douglas stated that powers grant,
ed by the bill To the President were
substantially" modelled on the lines
of the war powers exercised by