Evening star., 1933-05-27
INCOME TAX PLAN
CHANGE EXPECTED
Senate Believed Ready to
Tighten Burden Placed
on Small Farmers.
Continued From First Page.)

m1nlSurator OF the industrial SectlOn OF
the bill.
A public works administration will
handle expenditures Of the 100000
900 fund. The loaning facilities and
authority Of the Reconstruction Finance
Corporation, as far as lf-nquidating
projects are concerned. are to be trans
ferred to him. Meanwhile, the act re-
duced by Oo,0O0,oo0 the borrowing
power of the Reconstruction Corpora
tion.
Sixty-four Democrats and 73 Repub-
licans voted for the sales tax, while 228
Democrats. 80 Republicans and Farm
| er-Laborites voted against.
Without any trouble the Wilmington
| amendment to transfer the existing 8
per cent electricity tax from the con-
sumner to the producer was adopted,
| along with q number of perfecting
| amendments.
Passage came after two days Of de-
bate. Democratic leaders on Thursday
had managed to have rule Of pro-
cedure adopted by margin Of only 19
votes. This rule prevented all but the
Ways and Means Committee members
lIOIIi OIiClLlS taAiN AlSAo O.A
deluge of proposals to change the bill.
Mccormack Offered Tax.
Rega,ning control of their huge ma
joritv Yesterday, however, the Demo-
cratic leaders brought their full inf1u-
ence to bear against opponents, sand
wiching their speakers in evenly be-
tween those of opponents.
Late in the legislative battle pro-
ponents of the sale tax shifted their
tactics and instead of having 1t offered
by Representative Bacharach, Repub-
lican. of New Jersey, member of the
Ways and Means Committee, they had
it put forward by Mccormack.
Mccormack said his proposition would
raise $285 5,000,000 annually and in 1t
he proposed the repeal of excise levies
on automobiles. trucks. checks, boats,
automobile accessories and radio receiv-
ing sets.
Following are the major provisions OF
the legislation:
Industrial control:
Empowers President Roosevelt for
two years to establish fair codes OF COM
petition in business through suspension
of the antitrust laws, to fix maximum
working hours and minimum wages and
to license businesses.
Authorizes President to establish an
industrial planning and research
agency.
Provides penalties for violations of
established codes.
Creates Federal industrial admins
tration to carry out the Presidents
orders.
Public Works Provisions.
D,,hlics uoyke.
Creates q public works administra-
ton.
Authorizes a public works bond issue
of $4,000, 100000.
Contemplates an expenditure OF
2.000, 100000 on State, municipal and
other local government projects.
Provides that 80 per cent of the
total cost Of these projects are to be
made in outright grants to the States
and lesser governments, with the re-
manning 10 per cent to be loaned to
them at low rates Of interest.
Creates a Federal highway fund Of
the basis of so per cent on population,
25 per cent each on area and post road
mileage
Provides that balance Of about $780,
600 900 Is to be expended by the Fed
eral Government, of which about
S10O 100000 is for naval construction,
and more for rivers and harbor i'm
provement, flood control, buildings and
any project OF type heretofore ap-
proved.
Provides transfers loaning powers Of
the Reconstruction Finance Corporation
effecting self-liquidating loans to the
public works administration.
Limits working hours to 80 week
and stipulates "just and reasonable"
wages must be paid and outlaws prison
labor under the highway construction
section.
Stipulates that local citizens and vet
Grams to be given preference on jobs.
Insists that materials and supplies
used on projects must be domestic prod
ucts.
Taxation Provisions.
Provides 1920 0,00o, 900 revenue pro-
gram to cover interest and amortization
| charges of the $780, 900 900 bond issue.
Increases from to per cent income
tax rates on net incomes OF $4,000 and
less, and increases from 8 to 10 per
cent rates on higher incomes; TO raise
| S46.000.0 900.
Increases from to ~ cents the
tax on gallon of gasoline; to yield
| $92. 900 600
Makes domestic corporate dividends
subject to the new income tax rates.
estimated to produce $83 100000
Continues as "precaution" the pres
ent base of taxation by extending for
the fiscal year 1885, numerous existing
excise levies yielding about $400, 900, 900.
These include automobile, check, trans
| fer, amusement admissions and other
| levies.
Prevents carryover Of net losses of
any description by individuals or part
nerships, from one year to another, Tor
income tax purposes, making payers
absorb losses in the current tax year.
Transfers existing per cent elec-
| tricity tax from consumer to producers.
Reduces borrowing authority OF Re
construction Finance Corporation ST.
| 200 900 900.
Hit BY Manufacturers.
The bill was described last night by
the National Association of Manufac-
turers as unavoidable in its present
form" and likely to "retard rather than
promote business recovery
Announcing the unanimous" opin-
ion Of the associations Steering Com
mittee, after a meeting here yesterday,
Robert L. Lund, the president, said
that while industry has not proposed
such legislation, it is in entire sympa-
thy with the objectives and will will
ingly cooperate in any practical pro-
gram"
In a statement, the committee listed
as the dangerous features" Of the bill
the provisions for licensing industry if
necessary to produce stabilization, the
failure to provide control Of foreign
competition, the employment clauses
and the tax levies proposed.
The licensing provisions were called
80 drastic as to excite universal ap-
prehension."
Fav0rs Sales Tax.
"They grant the power of CONNER
cial exile and complete confiscation of
property" the statement said. There
appears little need for such drastic au-
thortty in view of the remedies and