Evening star., 1933-05-18
TAX PLANS LISTED
FOR PUBLIC WORKS
AND INDUSTRY BILL
Byrns Foresees House O. K,
Next Week Without
Sales Levy.
BUDGET DIRECTOR OFFERS
FOUR WAYS TO GET FUNDS
X Recommendation Withheld at
Opening Hearing, but Disad.
vantages Are Pointed Out.
BY the Associated Press

BY the Associated Press
Four separate ways of raising the tax
money to fund the $4,000, 900, 900 OUTLAW
OF the big public works industrial con-
troll Dill were put before the Ways and
means Committee of the House TODAY
by the administration, without recon-
menoation for any one, but with dis
advantages Of some levies pointed out.
A nat sales tax of rs or Ia per cent.
With no exemptions, was one plan
described by Lewis w. Douglas. the
budget director.
Inc three others involved raising in
come tax rates from their present 4 and
per cent levels either to and 10 or
8 and ~ per cent, in combination with
income taxation on corporate dividends,
plus increased gasoline tax (to 13A per
cent?; or levies on tea, coffee and cocoa.
which Douglas pointed out might be
considered to violate the London
economic Conference tariff truce; or
with new miscellaneous taxes covering
Such items as the smaller admission
ana long-distance telephone charges
Wnlch are now taX-exempt
Ihe revenues estimated from the fol,r
methods varied slightly in total, but
an approximated the s220, 900 900 which
the administration requires.
Hearings Opened.
Presentation Of these figures occurred
at the initial hearing on the huge bill
submitted by President Roosevelt only
yesterday.
A speedy conclusion Of the study was
indicated and Democratic Leader Byrns
OF Tennessee forecast House passage
OF the bill by the middle Of next week,
with no sales tax in it.
Douglas, in presenting the financial
aNernaIiveS, asserted the budget "in all
prooanlnty would be in balance by the
emu o! the coming fiscal year, as far
as ordinary expenditures 60, but that
besides the $4,000 900 for public
works, the Government would have to
81 SOC, ,000, 900. N
The need for funding by special tax
ne said. was that the bonds would be-
Principally for "non-self- -liquidatine'
He refused under question to predict
whas interest rates the bonds would
We don't know 80 days ahead what
late OF interest will have to be paid on
oono issue. 1t all depends upon the
market and the demand"
Stresses Only Facts.
Douglas emphasized that he was only
giving information" and not testifying
10 distinguish between tax programs"
ne had submitted, and added he had no
objection to the committee going out
SIDE OF the suggestions of the Treasury.
Representative Crowther. Republican
OF New York, asked Douglas if he did
not prefer the general sales tax and
abolition of existing excise levies.
Douglas raised his voice to reply:
This is very critical time in our
national finances. We can't lose any
revenue at this juncture. The revenue
must be had That's the answer"
unless other taxes were found that
the existing excise taxes, he said, 1t
would be disastrous" to repeal the ex-
lstlng excises and further. that any
new taxes would be based on estimates
while the revenue from present taxes
was already known.
representative Ragon Of Arkansas
asked Douglas if foods and medicines
were excluded from the sales tax how
much would be lost. Douglas said the
loss would total S60,000,000, to make
up which the rate on the remainder
would have to be raised to / q per ce.t,
Douglas disagreed with Vincent, DEM
ocrat, Kentucky. that revenue could be
increased by reducing the allowances
on income tax rates of corporations for
depreciation. He said this would raise
legal question on taxing gross rather
than net incomes.
douglas was to resume testimony
this afternoon with Senator Wagner.
Democrat, New York, and Donald Rich
oerg, counsel OF the American Railway
employees Association, following him.
Both assisted in formulating the meas
ure.
Douglas pointed out that the bill en-
powers the Federal Government to ad-
vance outright grants to States, cities
Continued on Page 2, Column g.