Evening star., 1933-01-06
Leaders Secretly Fear Extra
Session Must Be Called
Despite Their Efforts.
BOOST IN INCOME TAXES
MADE PART OF PROPOSAL
Roosevelt Approves Beer Revenue,
Continued Gas Levy and Slash
of $1o0,00o,oOo.
BY G. GOULD LINCOLN,
staff Correspondent Of The Star.


NEW YORK, January 6.-President-
elect Franklin D. Roosevelt and the
Democratic leaders of Congress today
stand committed to a budget balancing
program which will increase income
taxation, particularly on the incomes Of
men and women of small and moderate
means.
The Democratic Senators and Repre-
sentatives who sat In conference here
with Mr.. Roosevelt until midnight last
night returned to Washington today
prepared to go forward with the budget
balancing plan at the present session Of
Congress.
The plan has four main features:
l. A reduction in the appropriations
for the next fiscal year of 100000, 900
below the budget sent to Congress by
President Hoover.
2. Re-enactment of the present gaso-
line tax, estimated to bring In $l27,-
100000.
8. Enactment Of the beer bill, esti-
mated to raise at least $125, ,OoO, 600.
4. Increase in the normal tax rate Of
incomes and a lowering of exemptions
for both married and unmarried per-
sons. The tax rates would be increased
from and 8 per cent to and IL per
sons would be reduced from s.. 500 to
$4,000 and on unmarried persons would
be fxed at 1900. It is estimated that
S2OO,O00,000 additional revenue would
be derived from these changes In the
income tax law.
The budget-balancing plan Is predi-
Gated on the Presidents estimate that
there would be s492, ,000, 600 deficit un-
less further economies and increased
taxes are put into effect. It Is UNDER
stood, too, that there Is to be no efYort
to reduce the public debt during the
year.
Roosevelt Pleased.
The President-elect made II clear
today he believed substantial accom-
plishment had been made at sthe coY1-
ference last night. He appeaxed happy
over the results and the deter1ninafioii
OF the Democrats to 60 ahead with
their plans to balance the budget, and
apparently does not believe criticism
can properly lie against the plan 10
increase the normal income tax rates
and TO reduce exemptions.
The increased normal rates VIII apuIy
TO people with large incomes as wen
as those with moderate incomes, and
1t Is said viii raise the highest income
tax bracket to about IS per cent of
the income, whereas It Is now about
55 per cent.
1t is well understood here that Mr.
Roosevelt will call q special session
OF the new Congress II the beer bill
Ialls to become law. In his opinion.
failure Of this bill, whether BY veto
or otherwise, would leave the Govern
ment budget unbalanced and also would
not conform with the pledge of the
d Democratic platform for immediate re-
vision OF the Volstead act to permit
tne manufacture and sale of beer.
Senator Pat Harrison of Mississippi.
ranking Democrat Of the Senate Finance
Committee, after conferring today with
Mr.. Roosevelt, said he planned when he
returned to Washington to call the
Democratic members Of that committee
together to work IN cooperation with
the Democrats Of the House Ways and
Means Committee in framing the pro-
posed new tax law.
he indicated that II the bill could
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