Evening star., 1933-07-30
EXPECTS VETERANS
| TO SEEK old BASIS
! Next Congress Faces Undo.
ing of Special Session Acts,
Pr Ayers Senator King.
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Continued From First Page.)
happened when the Federal Govern
ment put through the Volstead act
and set up an organization to enforce
prohibition. The States sat back on
their launches and watched the Fed
eral authorities struggle with the
problem.
Senator King said that he had re-
ceived demands, and other Senators
have received the same, that the Fed
eral Government take command Of the
schools, and of all matters relating to
public health.
1T is quite clear" said Mr.. King,
that if the Government undertakes
to handle all these affairs for the
people, it will take a lot Of money and
a lot more Federal taxes"
A third factor which Is likely to
initiate against the reduction Of Fed
eral taxes at an early date is found in
the necessity of footing the bills for
the great Government activities in
the recovery program-the Civilian
Conservation Camps, the $500, 900 900
. gift to the States to relieve unem-
ployment, and the public works pro-
gram now in full swing for which an
appropriation of $4,000, ,000, 900 already
has been made.
Prohibition Repeal Helps.
a Repeal of national prohibition IS the
most tangible source Of early and new
: revenues for the Government. II the
; twenty-first amendment to the con-
stitution Is adopted, as Senator King
expects it will be, during the present
year, then the Federal license and ex-
else taxes on alcoholic beverages Will
bring in several hundred million dol
lars to the Treasury.
|, The great hope for reduced tax
rates, however, must lie in the recov-
cry of business throughout the coun-
/ try and the Unemployment of labor.
With a revival of business, taxable IN
comes will be built up and businesses
and corporations of all kinds will send
an increasing flow Of money into
! the Federal Treasury. The recovery Is
still in the making. II the program
now under way meets with signal sue
cess, the tax collections, under present
rates, should be greatly increased dur
ing the next year.
In the meantime, however. Senator
King and his committee will continue
to explore all sources of revenue. The
other members of the committee,
which has met several times, are
Senators Barkley Of Kentucky, Byrd
: of Virginia, Reed of Pennsylvania and
La Toilette of Wisconsin. Senator
! King has asked the assistance OF the
staff of experts of the Joint Commit
tee on Internal Revenue Taxation
He is making an examination OF all
State laws relating to taxation.
!, Would Amend Tax Laws.
While the special senatorial COM
mittee was set up primarily to STUDY
and make q report on what may be
done to eliminate double taxation. 1t
is the plan of Senator King to 60
much beyond this point so as TO De
ready when Congress meets again to
amend the Federal tax laws. In ex-
ploring new sources Of taxation. the
Committee will examine the proposed
general manufacturers' excise YAK,
more generally referred to as a safes
tax, among others.
The effort will be made TO elnlnAte
double taxation in the Federal laws
and to find some practical way by
which the States and the Federal Gov
eminent will not bear down too heavily
on the people through identical forms
of taxation.
Senator King said he would like to
leave to the States as far as possible
taxation on gasoline and automoblleS,
for example. On the other hand, ne
pointed out that the States through
the imposition of estate taxes nave,
along with the Federal Government:
practically wiped out many estates and
left the heirs nothing. Some plan
should be evolved, he said, through the
Joint action of the Federal Government
5and the States whereby the Federal
Government would impose these estate
taxes on an equitable scale and then
! sallot the States and to the Federal
sTreasury fair shares Of the revenue 80
raised.
,, Would Close Loopholes.
y In his study of the tax problem SEN
ator King said that efforts would be
made to close up all loopholes in the
Itax laws whereby many individuals,
partnerships and corporations have
Mound it possible to avoid their fair
share Of taxation. He referred partlcu-
I slarly to the case of partners Of j. p.
Morgan & Co. and of Kuhn, Loeb d
Co., who avoided payment Of income
taxes in recent years. The whole ques-
ton of the so-called capital gains and
losses tax will be gone into. he said.
The Utah Senator, who has been one
of those who has fought against the
CClSIdllt lIlCTcdSC COulRClo0tAOi AAia
pensions to veterans until the check by
1.-THE Roosevelt administration this year,
is greatly afraid that. with a congress
sional election just around the corner.
the Congress will not be able to stand
out against the demands for a return
| of virtually all the compensation which
i has been cut of under the operation
of the economy act and the Presidents
orders pursuant thereto. Members of
Congress who have been home" and
have returned to Washington say the
epressure already is beginning.
Senator King Is chairman Of the Sen
ate District Committee. He said that
kas soon as he had completed the study
Eof the general tax situation, he was
going into the tax system of the Dis
2trict which he says should be amended
He has favored the imposition Of an
Sincome tax here and also Of an estate
{tax. with the elimination of the pres
BENT personal taxes and with lower rates
fon real estate.