Evening star., 1933-01-08
EXTRA. CONGRESS
NOW SEEMS SURE
Budget Balancing Legislation
During Short Session Ap-
pears Unlikely.
Continued From First Page.)

administration shouJ deem it of price
less political value to force session
of Congress on President Roosevelt in
the early. days of his administration.
Such a session is a terror to weak
President. But this specter can only
terrify feeble, tinlid, yacillating execu-
tive 1t brings no menace to Presl-
dent of courage, decision and stamina.
Definite Program Forecast.
After declaring the country will have
lost some hundreds of millions Of dol
lars in revenue because OF delay, Mr..
Farley predicted:
The new Congress will function with
celerity; the new President will present
to them in his first message q terSe,
concise, definite program. He will lose
no prestige, suffer no humiliation, and
he will not have to make either excuses
or apologies when the session is done.
The first definite part of the Demo-
cratic program, except the farm bill
now before the House, in which the
President-elect clearly had hand, !
since it was evolved in his own house
in New York, was the budget balancing
plan
Members of the congressional party
who went to New York, Notwithstanding /
the criticisms leveled at the income tax
features, attempted to stand by their
guns on their return here and support 1
the program. However. they said 1t
was their hope" it would not be neces-
sary to enact into law the income tax
increases and reductions in. exemptions.
Some of them fell back on the Sugges-
ton that nothing could be done about |
revenue legislation until it was learned |
lust how much money would be needed; |
until they knew how much money had |
been cut from the appropriation bills, |
and some went so far as to say that It
could not be known until after March |
i5 income tax returns for the last year
have been made.
Collier Suggests No Date.
Chairman Collier of the House Ways
and Means Committee, which initiates
all revenue legislation, could not be
pinned down to suggest date when
his committee would meet to discuss the !
budget balancing revenue legislation.
He said the committee would walt a
reasonable time" to learn how much
money would be needed. He added he
hoped big slashes would be made in the |
expenditures for the Government, so 1t
would not be necessary to raise as
much revenue from taxation as has been
expected. >,
I'm case we have to raise revenue"
said Mr. Collier. this plan (the New
York plan) seems the best; the least
painful"
Speaker Garner denied fatty that he
had thrown overheard the conference
plan for balancing the budget, although
he said there we're other tax plans
which might be adopted.
Taxes should be raised from those |
who have" said the Speaker, declaring |
he always had believed in the principle |
of the income tax.
The Speaker, like Mr. Collier, made |
no prediction as to when the Ways and |
Means Committee could or would begin |
work on revenue bill. He said 1t would |
be necessary to know as near as possible
how much revenue was needed, and that
it would be well to know If the beer bill
was to become a law He made it clear
that he expected veto of that meas
ure by the President, and that 1t was
likely the Republicans intended to force |
a special session.
Harrison Defends Plan.
Senator Harrison Of Mississippi, who
is to be chairman OF the Finance Com |
nfittee in the next Congress, and who |
was one of those who drafted the con-
ference tax plan, defended the plan also |
He said it was his intention as soon as
possible to call the Democratic members
the revenue situation, and that he hoped /
to work in cooperation with the House |
Democrats in charge of revenue legisla-
ton.
Senator Harrison was in conference |
with some of the House Democrats yes
terday, and it Is believed he urged them |
to stand firm for the conference plan.
''The most important thing done at |
the conference with Mr.. Roosevelt In |
New York" said Senator Harrison. was
the determination to balance the budget |
at this time if possible, but to balance 1t /
whenever the Democrats can do So"
He said the country had been put on |
notice that the Democrats intended to /
balance the budget-by drastic cuts If |
possible in expenditures and by both /
cuts and increased taxes if necessary.
But we are going TO balance the |
budget" he added
In reply to questions about the income |
tax features of the conference plan, /
Senator Harrison said he had never /
heard of any tax legislation that was |
popular; that the Democrats would |
have to expect criticism. This was /
similar to the position taken by Sena- /
tor Byrnes of South Carolina, another |
of the New York conferees.
Alternatives Mentioned.
Senator Harrison and the other con- |
fereeS insisted there was "f1eMbility" in !
the income tax feature of the budget |
balancing plan; that the details of the |
plan were not settled, although it had /
been announced in New York that the /
conferees had agreed to increase the |
normal income tax rates TO 6 and II !
per cent and to reduce the exemp- /
ton for married persons to 50 600 and |
TO keep the exemption for single per /
sons at 81 900
The Mississippi Senator mentioned
some alternative proposals. He said /
that by increasing the normal taxes /
from and per cent, the rates in the /
existing Law. to and 10 per cent |
enption from $500 to $1,000 and the /
exemption for dependents from S400
to 5000 each, it would be possible to
raise S152,000,000 in revenue. On The
basis OF the same proposal. except with
a change Of rates to and 8 per cent. /
he said it would be possible to obtain
S230,00O 900 revenue.
"If We made the exemption on single
persons $500, instead of 81 o00." said
Senator Harrison, "and $500 for
married persons and $500 exemption
for each dependent, and left the rate
at 4 and per cent as it is today, we
would get SITE, 100000"
No More Beer Bill Riders
It is quite clear that if a revenue
bill is brought in providing for lowering
the base and increasing the normal in
come tax rates, attempts will be made
to increase the surtaX rates in the
Senate, if they are not made in the
House. and the old fight will be waged
all over again.
The Democrats continued IN insist
yesterday that they would not attempt
to place any additional revenue legisla-
ton as amendments TO the beer bill
SpeaA ~ner said that bill would
be brousnu INTO the House for continu-
ing the gasoline tax for another year,
whether any other revenue legislation
were attached tc il or not. Senator