Evening star., 1933-10-23
BALANCED j. s. TAX
STRUCTURE SOUGHT
House Group Strives for Pro.
gram to Finance Govern
ment Under All Conditions.
By the Associated Press.

By the Associated Press.
Development of balanced tax struc-
ture, which will inClude-in the event
of repeal-S500, ,O00000 in liquor rev.
enues, today was the goal of a House
Ways and Means subcommittee.
1t summoned Treasury experts for
recommendations in opening study Of
the Federal tax structure. Representa-
tive Sam Hill, Democrat, of Washington,
subcommittee chairman, explained his
sroup's purpose:
I'VE are after a permanent, we'll
balanced tax structure that will bring
in sufficient revenue to maintain the
Governments credit under any eco
nomic condition"
Besides new liquor levies and tight
ening of income tax laws, the admin
istration program embraces the possi-
bility of removing the so-called nuisance
taxes of the 1882 billion-d dollar rev.
enue act.
Hill said liquor taxes would receive
first consideration. He forecast rate
of at least $3.50 a gallon on distillateS
with probably compensatory boosts in
wine levies. 3
Would Return 1891, 100000.
The $3.50 figure, Hill said. would re-
turn 1891 100000 on the administra-
tions 100000, 0,000-gallon estimate of the
first years consumption. Import duties
were expected to provide another $780,
100000 after possible reduction to SO
from the present rate of SIS gallon.
The aim of the administration and
congressional leaders is to work out a
balanced program that will insure a
steady flow of revenue into the Treas
ury to meet the Governments current
expenses under any economic condition
The administration hopes that, on the
basis of the findings. it will be possible
for Congress to plug loopholes in the
income tax law and restore it to its
former position of providing more than
half the Governments revenue.
100000, 900 Seen in Duties.
Customs duties on imported liquors
are expected to exceed Sl00, 100000. The
present import tax is SIS gallon The
study will encompass a reduction to
possibly So a gallon to prevent domestic
distillers from profiteering or from
raising the price on the limited quantity
of liquor available for consumption
which, officials say, would permit the
bootlegger to stay in business afler re-
peal. At the same time. it is planned
to keep the import levy high enough to
protect domestic distillers.
In connection with the income tax
Hill said the survey would be confined
to administrative features. Rates are
to be laid aside until the full committee
opens hearings in December. In view of
strong opposition in the House. the
question Of a general sales tax is not to
be considered.
Information received by the Senate
committee investigating the stock mar
ket pertaining to avoidance of income
consultations and reorganizations of
corporations. is expected to help guide
the committee in making its recon-
mendations
Outlines Scope of Study.
Hill said. will include administrative
features of individual and corporate re-
turns; consolidated corporate returns;
capital gains and loss provisions; post
ponement of payments, credits and de-
ductionS now allowed for depreciation. 4"
Hill said it had been possible for
wealthy men to avoid payment of taxes
through various interpretations of the
laws administrative features, and
added:
we hope to provide legislation that
will avert the necessity of enacting
emergency measures to meet unantic-
lpated Treasury deficits and to make
each person contribute his proper share
to the maintenance of the Government.
Hastily enacted tax measures often re-
suit in some unjust levies."
Hill pointed out that until the last
three years individual and corporate in
come taxes ordinarily supplied more
than half the Treasury's total receipts
In 1882, however, they dropped to
81 1,057,0 ,0O0 compared with $780,
000,0 in 1881. Despite the increased
income levies In the so-called billion
dollar revenue bill of 1882. reports from
the Treasury indicate that returns from
income levies are little more than those
on the 1882 rates.