Evening star., 1933-05-12
NEW TAX STUDIED
TO FINANCE HUGE
PUBLIC WORKS PLAN
Revised Construction and
Industrial Control Bill Given
to President.
CONGRESSIONAL ACTION
NEXT WEEK PREDICTED
Sales Levies Proposed to Raise
Annual Liquidation Fund
of $22O, 100000.
BY the Associated Press.

BY the Associated Press.
A revised draft of the public con-
struction- industrial control bill was car
ried to the White House today by Sen
ator Wagner, Democrat of New York,
for final check with President Roose-
welt and a last-minute determination of
the taxation program.
Speaker Rainey predicted to news
paper men that the $4,000, 600 900 meas
ure would be ready for congressional
presentation next week
Wagner held a brief conferenc with
Donald Richberg. representative of Or
ganized labor. just before turning to
the White House with the latest draft
OF the revolutionary plan for controlling
and speeding up industry.
Other Features Completed.
He said the form of taxation to fl
nance the proposed construction pro-
gram would be the last thing deter
mined, indicating other features were
complete.
Before the bill was laid before the
President there was a final conference
participated in by Budget Director
Douglas, Richberg and Hugh Johnston,
chairman of the old War Industries
Board. as well as the Senators. All
have taken part in drafting the provi-
sions for control of industry.
Out of the conference the committee
expected to bring definite recommenda-
tions on taxation.
Sales Taxes Proposed.
af tox
to be imposed to raise an annual liqui-
dation fund of s220,000,000 has CEN
tered around forms of sales taxes.
Rainey conjectured in an interview on
levieS on coffee, tea, bananas, peppers
and spices; but emphasiZed-as do other
legislators-that conclusions are still to
be reached.
The program was to be presented to
the cabinet today by the President.
The proposed legislation enbodies au-
thority for industry to enter agreements
designed to stabilize production, i'm
prove wages and better working condi-
tions. 1t was virtually completed last
night by the Presidents special COM
mittee.
Robert L. Lund, president of the Ma
tional Association of Manufacturers,
said hundreds of thousands of men
would be put back to work under the
section Of the bill which would allow
industry to work out Unemployment
agreements. He said industry was will
ing to cooperate fully toward re-estab-
fishing purchasing power by putting
men to work.
May Kill 30-Hour Week Bill.
House Democratic leaders expressed
belief that the measure would obviate
the necessity of acting on the 30-hour
week work bill at this session. asserting
| that under the proposed measure in
dustry would be permitted to agree on
minimum wages and shorter hours.
Representative Byrns of Tennessee.
the Democratic leader, said the public
! works program would include upward
| OF $3.50 100000 for highway construction
and S32 100000 for naval building.
TAX OF new taxes to finance the pro-
gram drew immediate opposition from
some Democratic leaders. including
| Chairman Harrison of the Senate
Finance Committee.
i would rather cut down construction
than impose new taxes" he said.
Rainey Proposes Tax.
! Speaker Rainey said he did not
know what taxation would be suggested
to raise about s200,OOO,OOO for the in
tereSt and sinking fund, but he said
S250,000,000 could be raised by a lew
on coffee, tea, bananas, peppers and
spices"
Several years ago when I was on the
Ways and Means Committee, I made
an investigation and found Wat it
would be possible to raise an enormous
| amount on revenue through a small tax
on these commodities, Rainey told re-
porters.
THE price of those commodities is
cheap now and tax on them would
be hardly noticed
Against Sales Tax.
Rainey said that he thought the
| House was against a general sales tax.
| but if President Roosevelt wants it hard
| enough, guess he could get it." He
added. however. it had not been sug-
| gested
"The suggested increase in taxes on
lower incomes would be very unpopu-
lar" he said.
I'VE would get plenty of revenue If
the eighteenth amendment is repealed"
! he continued. 1T would solve the
/ question of raising additional taxes"
! Rainey said proposal to set up a
joint congressional committee to study
raising taxes by making it mandatory
to blend grain alcohol with gasoline
was being considered, but he did not
expect action this session.
The proposal is for heavy tax on
| gasoline not blended with alcohol made
from farm products.