Evening star., 1933-05-21
DOUGLAS TAX PLAN
due TOMORROW IN
HOUSE COMMITTEE
Method of $1,000, 900, 900
Public Works Support to
/ Be Drafted.
MODIFIED OR LUXURY
EXCISE TAX. SCHEDULED
Doughton Wants Program Big
Enough to Bring in 1920, ,000,-
600 Yearly to Fund Bonds.
BY the Associated Press.

BY the Associated Press.
A tax program designed to assure
sufficient revenue to back the projected
$4,000, ,00o,o0 public works program Of
the administrators industrial control
bill is to be drafted in executive ses-
sion tomorrow by the House Ways and
Means Committee, which yesterday
completed hearings on the gigantic
measure.
Although Democratic House leaders
decided to put the administration oil
control bill into the industrial measure
as an amendment. Chairman Doughton
OF the Ways and Means COMMITTEES Asst
night said the first thing on the pro-
gram was to determine how 1920 0,0o0, 900
could be raised annually for the in
terest and sinking fund requirements OF
the bond issue. Hearings on the Mar
land bill, to give the Secretary Of the
Interior control over oil production, will
have to await until Tuesday, Doughton
said
Based on Douglas Schedule.
Indications are that the new revenue
program will be based on a schedule
submitted by Lewis w. Douglas, di-
rector & the. budget, to the committee.
calling fce increased income taxes, sub
jecting corporate dividends to the taxes
and either an increase in the gasoline
tax or modified or luxury excise tax.
Doughton said that with the excep-
ton of minor amendments, the indus
trial section and public works title Of
the measure would not be revised. The
whole question revolves. he said, on the
taxation program.
He said he wanted to get q program
that would insure sufficient revenue to
bring in $4,000. 900 a year to fund
the big bond issue. He added that he
wanted 1t to be "the least burdensome,
the least Questionable and the least
offensive program possible.
Z In addition, Doughton said he would
favor an amendment to the taxation
provision, calling for the immediate CAM
collation. of the new taxes in the event
treasury revenues, either through the
repeal Of the eighteenth amendment OF
through increased business, become suf-
flcient to meet current requirements.
Doughton said the committee would
communicate with President Roosevelt
early Monday morning to determine on
the procedure relative to the oil con-
troll bill.
Inclusion Of Oil Bill.
IF the President wants to delay this
bill for the inclusion OF the oil bill,
that's up to him. Doughton said.
He added the President had given
the committee only until early this
that it was his intention to have it COM
pleted before the President carried out
his stated intention of submitting one
of his own.
During the hearings, Representative
Marland, Democrat, of Oklahoma, who
introduced the oil control bill, read
President Roosevelt's letter to Speaker
Rainey, requesting the two measures
be combined. He also said that Secre-
tary Ickes was prepared TO come be-
fore the committee Monday to explain
the measure.
Subsequently, Doughton said that
hearings on the oil measure could not
be held before Tuesday at the earliest.
He said he was determined that the
committee should agree upon a tax
program Monday, and so notified the
members at the end of today'S session.
Doughton said "the tax program will
be compromise and the judgment Of
no one man OF this committee will pre-
vail" Asked whether he thought the
sales tax had any chance of being in
cluded, Doughton said that there was
some sentiment IN the committee for
it. but that he felt it would have little
chance Of being approved by the House
II reported out by the committee.
Rankin Fights Sales Tax.
A vigorous protest against any at
tempt to include the sales levy was
made in statement by Representative
Rankin, Democrat, of Mississippi, who
quoted President Roosevelt as saying
that he was mortified" at the sug-
gestion. Rankin asked for increased
inheritance taxes and restoration of the
wartime excess profit taxes. In this
he was joined by Representative Kvale,
Farmer-Laborite, of Minnesota, who
also suggested small gross income tax
levy in addition to the existing net tax.
approximately 40 witnesses were
heard In the third and last day of the
hearing. Representatives Of agriculture
protested the proposed sales levy and
they suggested increase In the gasoline
tax by three-fourth of l cent gallon.
On the other hand, representatives of
the automotive, rubber, truck and other
industries advocated the manufacturers
excise levies in preference to the in
crease in gasoline taxes.