Evening star., 1933-05-22
HOUSE COMMITTEE
0. KS TAX BOOST
Approves Increase in Gas
and Income Levy to
Finance Bonds.
Continued From First Page.)

report it to the House for early action.
The North Carolina Democrat said he
favored the inclusion in the tax pro-
vision of section. calling for immedi-
ate suspension of the new tax levies in
the event the eighteenth amendment is
repealed and the Treasury is in condi-
ton to meet the interest and amortiza-
ton requirements of the bond issue
from either liquor or other revenue
No committee action was taken at
once on this proposition, however. In
view of President Roosevelt having noti-
fled Congress he favored such action,
to obviate the new levies if revenue
from liquor or other sources makes them
unnecessary, it appears likely that
clause to that effect will be put into
the bill
Prepares Amendment.
Budget Director Douglas Is having
prepared an amendment permitting the
autona.ic suspension of the new taxes
whenever the revenues flowing into the
Treasury permit. No mention is to
be made of the repeal of the eighteenth
amendment, however.
This would apply, Doughton con-
tinusd. in the event revenue began to
flow from liquor taxes, upon ratifica-
ton of repeal by SO States.
Our plan is TO get the bill up on
the House floor Wednesday If possible"
Doughtcn said.
AS the committee recessed. Doughton
Marland oil control bill into the public
works-industry measure. He had talked
with Mr.. Roosevelt over the telephone
about it,
Il haven't any instructions to put
it into the bill and there has been
really no request" he explained.
LAS I understand 1t, the President
Is willing for it (the Oil bilD to be put
on the industry bill, but that he is
leaving it up to the Ways and Means
Committee"
Doughtcn said he favored Handling
the bills separately, so as not to muss
up this bill,' referring to the industry
measure.
Meanwhile, Senator Wagner, Demo-
crat, New York, told the Senate FL
nance Committee the industrial control
public works bill provides 1.-The chart
and compass for a program of re-
covery"
IF administered, as I know it will
be-" Wagner said. with the vigor and
resourcefulness which the President has
exhibited in all his actions, it will con-
tribute nightly toward the rehabili-
tation of the economic life of the
American people.
Both parts of the bill are designed
to provide an immediate impetus to
employment. and that Is the inescapable
necessity of the present moment"
Questioned by Senator King, Demo-
crat, Utah, as to whether the bill
would destroy the competitive system
and substitute the Mussolini or German
cartel system" Wagner said:
Not at all. Competition is not abol-
ished. 1t Is merely made national 1t
is national plan Of economy without
which We cannot recover We seek to
put competition on high plane
Wagner said the underlying princi-
Piles OF public construction were too
clear to dispute" and were based upon
the following:
"A vast number Of men are without
work. They must be and are being
maintained at public expense. I sub
NIT 1t Is Sounder business, better gov
eminent and more humane policy to
pay these men for useful work than to
keep them in idleness.
I'VE cannot emerge from the depres-
sion until there is a sustained resump-
ton OF enterprise. That cannot occur
through private initiative alone until
business men see prospect of profit.
Government construction, however. Is
not undertaken for profit and can,
therefore. be initiated without waiting
for an upturn of business.
Public construction distributes pur-
chasing power without at the same
time adding to the supply of competi-
tive goods in search of a customer. 1t
is, therefore, ideally suited to serve as
means of printing the pump of busi-
ness"