Evening star., 1933-05-16
Problem of Financing S3,-
300, ,00O,0 900 Public Works
Program Up to Congress.
PRESIDENT SUGGESTS
ONLY GENERAL MEANS
Message Due Tomorrow Outlining
Industrial Reorganization
Plans.
By the Associated Press.

| A stormy fight in Congress over new
taxes to finance the Governments So
30o,0O0,ooO public building program
was indicated today.
Powerful opposition, already massed
against proposals for q general sales
tax led to the belief such a levy would
meet with almost certain defeat.
However, the problem is one for
Congress to settle. President Roosevelt
will send up his message on public
Works-industrial control tomorrow. He
will suggest several methods of taxa
ton, but he will not recommend any
particular one
After White House conference yes
terday one Democratic leader said:
The House will not pass a sales tax
and from the attitude taken by leaders
Of the Ways and Means Committee
there is little likelihood that the COM
nittee will recommend such a levy"
The House decisively rejected the
sales tax two years ago.
$220,000,000 Year Needed.
The committee Of congressional and
industrial chieftains, which drafted the
measure. suggested a Unemployment
tax of l to 2 per cent an all sales Of
industry. The new taxes are needed to
, raise. s220,000,000 annually to finance
interest and amortization charges on
the s3,300,000, 900 bond issue
0f fLa ol}
are to be advanced include an increase
in the present 1-cent Federal gaso-
line tax; a sales levy on coffee, tea,
spices, bananas. pepper and salt: q
| tax on stock dividends, and reduc-
| ton in the income tax exemptions
from the present s2,5oo allowed mar
| ried and the 81 900 allowed single per-
| sons.
Congressional leaders were called
into conference yesterday by the Presi-
dent for study OF the taxation fea-
lures Of the broad measure which, n
addition to its public works provisions,
IS designed to allow industry to enter
| into trade agreements for the I'm
provement Of wages and working con-
| ditionS.
Difficult to Pass Tax.
Senator Robinson Of Arkansas, the
| Democratic leader. expressed the opin-
ion later that it would be difficult to
| impose a sales tax" Chairman Har-
| rison Of the Senate Finance Commit
| tee said his committee and the House
Ways and Means Committee would be-
gin an immediate study of the tax
| problem
Referring to opinions expressed at
the White House meeting. Harrison
said The attitude generally was that
We will take the sales tax if necessary.
but we will try to find something else"
| The Presidents aides have whipped
the big bill into final form for sending
to Congress tomorrow and Mr. RooSe-
welt was represented as determined to
press the measure to enactment at this
session. 1t will be introduced in the
House first
The Presidents fiscal advisers have
decided that to pay interest on and
amortiZe money borrowed for the three
billion-dollar construction program,
S220,000,000 year must be raised in
addition to usual Treasury receipts.
Insists on Revenue.
While no attempt was made at the
White House conference to agree on
any specific tax, the President did in
sist, with the support of Lewis w.
Douglas, director of the budget, that
additional revenue be provided to create
a sinking fund for the securities with
which the building program is to be
financed.
The discussion was confined, those
present said, to forms of taxation and
did not go into the other intricacies of
the proposed bill, designed to relax the
antitrust laws to permit agreements
writ h ~ yrH@ ~lr,y,
hours and production. Douglas is un-
derstood to have told the group that the
manufacturers tax was the only single
levy which would raise the needed
money.
Suggestions to increase the present
normal income tax rates from per
cent on the first $4,000 to or per
cent and from per cent on incomes
above $4,000 to or 10 per cent were
made. However. it was said this would
not bring in the S220000000 needed
and would have to be supplemented by
other special levies.
Organized Labor Opposed.
Meanwhile, organized labor was
known to be dissatisfied with certain
of the provisions relating to working
conditions, and at an all-day session q
group of prominent manufacturers
probed deeply into the probable effects
on industry of these same provisions.
From within the closed doors of the
meeting of the National Association of
Manufacturers Steering Committee
came report that some members were
strongly against the labor clauses.
despite the compensating returns to
industry through relaxation of the anti
trust laws
At the Federation of Labor 1t was
said President william Green had not
seen a copy of the proposed bill and
Donald Richberg. attorney for the
Association of Railway Labor Execu-
tives, who has been one of the drafters,
was not regarded there as spokesman
of labor.
Another possible objection In Con-
gress lay in the antitrust law changes
Revolving Democrats forced a caucus
last week with the intention of putting
the House majority on record against
any loosening Of these laws. The move
failed, however.