The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-12-28
Congress Will Hit
BOOtleggerS and
Rich Tax Dodgers

agreements with other countries. In
:ha. case, Scotch and Irish whiskies
nign. be admitted for as low as So
a gallon, with wines as low as 50
cents, instead Of the present rate Of
si25.
L:cuo. contro. IS something else
again. L now IS entrusted to the
Federal Alcohol Control Adm!nstra-
ton, under joseph II. Choate. j.,
which supery.ses codes covering dis
filling, importing. recsHy!ng. whole
sai.ng. and beer.
Under those codes. the government
s.as alnos: complete power over the
industry and can control prices and
supply.
Administration leaders in Congress,
apparently rejecting the White
House view, prefer to wait and see
now FACA control works out. AL
kinds Of control measures will be adj
vaaced. meanwhile. however. inciud-
ing some providing to- no control
beyond federal projection for dry
states.
Some Taxes May Go
Late IN the session some control
bill IS likely to be introduced With
administration backing. I. might
provide. as Assistant Secretary Of
Agriculture Rex.ord Tugweu urged. a
federal corporation to buy the out
pu. Of dis.iiler;es and sell it TO the
wholesale and retail agencies.
Roosevelt is believed TO be inter-
esced IN the idea.
Besides the taxes automatically
eliminated by repeal, several nuisance
taxes which now bring in only about
$40 coo 900 year may be repealed be-
cause they are expensive TO collect
and bring little return.
Such taxes include those on bank
checks, candy and chewing gum, soft
drinks, radios. -efrigera.oys, matches
and firearms and shells.
Loopholes to Be Closed
Acting Secretary Of the Treasury
Mo-een,hau has stressed the taxation
principle Of ability to pay IL pre-
Congress discussions and the issue VIII
be Tough. on: on the floors Of both
houses.
A proposed single normal income
tax rate instead Of the present two
classes 0. rates would be accompanied
By higher surtaxes to offset resultant
decreased revenues.
Measures to reduce tax avoidance
include revision Of capital gains and
losses provisions ard Of the partner
sa., provisions, both 0. which helped
Morgan and his partners TO escape
income taxes, as vel. as compulsory
Join. returns by husband and wife.
Once more there viii be . move
nenc for a sales tar. but !. isn't like
IS to get anywhere.
Exemption Under Fire
a si.owGoT. IS certain on taxation
O. tax-eyempt securities, with the
outcome doubtful. Senator Borah o.
Idaho is one OF those Who have come
10 believe Congress should impose
such tax and then let the courts de-
eide whether it IS constitutional.
Senator Augustine Lonergan, one O
the chief proponents Of the plan. est
mates the tax would raise from $40
coo 900 to $50. 100000 a year.
Tax-exempts include federal. state
county. ard city securities. The chic
, objections raised TO taxing them Ar
The questionable cons-itutional:ty O
i. the moral issue involved in break
, ing faith with investors. the possibil
~ that necessarily higher inte-es
, rates would otfse. revenue gain. ant
. the added difficulty Of selling sucl
: bonds when no longer tax-exempt.
Publicity Asked on Tax
Progressive hopes FOR return Of tn
excess profits tax at a higher rat
were raised by Morgenthau's sugges
ton that ar excess profits tax TO
; large business be considered.
: They also will ask publicity Tor n
, come tax payments as q method Q
: preventing tax evasions.
Senator Norris OF Nebraska ia
: promised an attack for inhertanc
j taxes suci, as viii prevent the passag
); Of huge fortunes from one generation
e TO another. and progressiGes general
: Is fee. that sursaxes should be u
; creased from rhe;- present maximum
IS per cent levy on net incomes aboV
; $1,000 900.
t Copyright, 1888. NEA Service, Inc