Evening star., 1933-12-21
Liquor Tax Action Sought.

President Roosevelt has informed
Democratic leaders the administration
desires early action on the liquor tar
bill to let the Treasury get the benefit
of a higher rate as quickly as possible.
Chairman Doughton of the Ways and
Means Committee said his group would
meet in executive session tomorrow and
Saturday to agree upon the tentative
form of the liquor measure. 1t will be
introduced on the first day of Congress
January 3.
A majority Of the committee indi-
Gated yesterday the Sl.l0 gallon levy
on spirits would be Increased to 81 20
This, they said, under the administra-
tionS proposal to share 1t with States
not having a volume tax, would give
those States SIS cents a gallon and the
Federal Government Sl.65.
Discussing the testimony Of witnesses
at hearings on the general revenue
measure. Doughton expressed to news
paper men the feeling that the COM
mittee was receiving protests rather
than constructive suggestions
With the Government faced by prob
lens of refinancing large outstanding
obligations maturing soon, the chair
man said there was urgent need for
added revenue to bring the Treasury
more in balance Only through taxa
ton. he said, could additional funds be
raised, whereas virtually every proposal
before the committee to bring in more
money was opposed vigorously by those
likely to be affected.
AT hearings yesterday Representative
Lewis, Democrat, of Maryland. warned
his colleagues as we'll as the witnesses
in the caucus room that "the time has
come when We have got to quit cod
ding taxpayers who have net incomes
that should be taxed"
Below Foreign Rates.
Lewis produced figures which. he
said, showed that not until the million
dollar class was reached do the United
States rates even compare" with those
levied on incomes in England and Ger
many.
Members OF a subcommittee, which
has studied for several months all
phases of the income tax laws since
their inception in 1916, along with
court decisions, Treasury regulations
and interpretations, have closely ques-
toned witnesses at the hearings.
Attorneys after running a gantlet
Of pointed questions frequently have
retired with flushed faces. AminiStra-
tion officials also have been vigorously
questioned as to the merits of their
contentious.
Yesterday the committee heard pro-
tests from group of witnesses against
the proposals to eliminate consolidated
income tax returns now allowed corpo-
rations, to abolish foreign tax credits
and to reduce by Is per centn reason
able allowance for depreciation and de-
1nti ,f n I'M
The case of 'the petroleum induStr.
and it's customers against a Fedora
tax on gasoline and the taxes on lubri
eating oils and pipe line transportation
was presented to the committee b.
Fayette B. Dow, Washington repre-
sentative of the American petroleum
industries committee and petroleum
trade associations.
Dow said that for every dollar spen
for gasoline 362 cents go for State anC
Federal taxes and 63.8 cents for tn,
gasoline itself. to say nothing Of count.
and municipal levies.
Favors Gas Tax End.
Chairman Doughton said he ant
other members OF the committee vert
inclined to favor abolition of the 1-cent
Federal tax on gasoline, but that il
view Oh Ctlc eHleISeuCy III
did not see much prospect of this being
done now.
John Cullen of Ponca City, Okla
representing the Midcontinent Oil ane
Gas Association of Tulsa, opposed re-
ducing the depletion allowance, par
ticularly in the oil industry. stressine
the hazard of that production and thai
an oil well begins to be depleted from
the time it is started. He told tht
committee the oil man pays more ta'
in comparison with the amount oi
income than does any other business.
The right of depletion and deprecia'
tion deductions also were defended by
Louis C. Grafton of the Cerro de PascC
Copper Corporation, most Of whose
mines are in Peru.
H. P. Taylor of winston Salem, N. c.
speaking for independent tobacco pro.
ducers of Kentucky, Virginia, NORTH
Carolina and Tennessee, asked for &
reduction in the tax on plug and twist
tobacco from Is cents to 6 cents {
pound, contending the higher tax wa'
killing the industry