Evening star., 1933-01-19
HOUSE DEMOCRATS
SEEKT0EL|M|NATE
DOUBLE TAXATION
Leaders Plan Action to Unity
U. S. and State Levies
in Extra Session.
800 DUPLICATED IMPOSTS
CITED BY BUSINESS MEN
Representatives Of Tobacco and
Gasoline Interests Suggest Rene
dies for Inequalities.
By the Associated Press.

BY the Assooiated Press
Having definitely discarded plans for
new taxation legislation this session,
Democratic House leaders today began
considering plans to eliminate double
taxation during a special assembly of
the new Congress in April.
BY unifying taxes to permit the States
to participate in revenue collected by
the Federal Government, thereby elimi-
mating various levies on the same
products, the Democrats hope to raise
additional revenue on the basis Of in
creased consumption of tobacco, gasoline
and other products
No Hope for Action Now.
Representatives of tobacco and gaso-
line interests already have proposed to
Democratic members OF the Ways and
Means Committee that before additional
tax legislation is undertaken these pro-
posals be given consideration.
They were told, however, that there
was no hope for enactment Of such
legislation at this session, due to the
congested situation in Congress.
The suggestions coincide with the pre-
liminary report of the Ways and Means
more than 800 overlapping Federal and
State taxes.
S. Clay Williams Of Winston Salem,
N. c., president of the r. j. Reynolds
Tobacco Co., conferred with Speaker
Garner, Chairman Collier of the Ways
and Means Committee, Majority Leader
Rainey and Representative Doughton,
Democrat, North Carolina, on a pro-
posal to levy a tax of So a thousand
on cigarettes, one-sdxth of the proceeds
to be returned to the States.
Representatives of the American Pc
troleum Institute conferred also with
Rainey, Illinois Democrat, on q similar
proposal relating to gasoline.
Wants Cigarette TAX ActT6n.
Chairman Collier said after the con-
ference that Mr.. Williams suggested ac-
ton on the cigarette tax at this session,
since more than 40 State Legislatures
were meeting this Winter.
In view Of the congested legislative
situation in the Senate" Collier said,
I'VE told Mr.. Williams it was seriously
doubtful whether any tax legislation
could possibly be enacted at this session.
Undoubtedly this will be given
serious consideration in the special ses-
sion. I think it has great merit and
should be given careful consideration"
Williams told the conference that due
to high State cigarette taxes in addi-
tion to the Federal leyies, consumption
of cigarettes was on rapid decline.
He said that if uniform tax was
levied, revenue would be doubled
through increased consumption" the
Mississippi Democrat added.
The proposal on cigarettes has been
sponsored in bill by Representative
Doughton and is pending before the
committee. It would provide that the
Federal Government refund sixth of
the revenue from cigarettes to the
States twice O year. 1t would require
the States to repeal their varied Gig
arctic taxes.
Doughton said the present Federal
tax on cigarettes was So a thousand.
but that the proposed rate In his bill
was tentative.
Budget Program Deferred.
All Democratic quarters conceded last
night that President-elect Roosevelt
would convene the Seventy-third Con-
gress to put into law the party's fiscal
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