The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-20
AXPROGRAM
AIMS CONFLICT
IN WASHINGTON
Division of Opinion Seen
Needing Decision by
Roosevelt.
BY THOMAS L. STOKES
Times Special Writer

SlOn lido QCfC4OPOO NAtAlAl lA4S
treasury over tax program at the
January session of congress which
will require a decision soon by
President Roosevelt.
A "pay-as-you-go" group favors
a substantial increase of taxes to
finance the recovery program as far
as possible, while others would have
only a very moderate program and
some would conflne tax LEGISLATION
at the coming session to plugging
up tax loopholes.
When Senator Pat Harrison, (Dem.,
Miss, chairman Of the finance
committee, emerged from the sum-
mer White House last week to eX-
press the hope no taxes would be
necessary, his statement was inter-
preted largely as the natural atti-
tude of politician before election.
Position Is Supported
Inquiry here develops that he
has support for his position within
the treasury.
His support comes from group
which holds that tax increases
should be withheld until the spend
ing program of the government
takes hold better and business is
beyond its present state.
Tax increases at this time, this
group contends, would deter
recovery.
Disagreeing sharply, another
group seeks to take up some of the
slack of growing national debt by
a rather substantial tax increase.
They argue it is an essential pre-
caution to ward off possible re-
course to inflationary measures and
would instill confidence.
The strict budget-balancing influ-
ence left the treasury with the re-
of Lewis Douglas, former
budget director, who favored re-
trenchment of expenditures and a
tax program providing increases all
along with exemptions only for in
comes of $500 or less a year.
Spending to Continue
The administration is planning to
carry on the large spending pro-
gram that Mr.. Douglas opposed and
it was inferred in some quarters
that his departure likewise meant
that the administration would not
follow his tax ideas.
Secretary Morgenthau has re-
fused to commit himself until
President Roosevelt has studied the
whole problem. Meanwhile, how
ever, he has experts busy working
upon tax plans, including a perman-
ent, longtime tax program which
would base taxes upon capacity to
pay and possibly realize thereby a
of wealth. The ques-
ton now is whether to throw this
permanent reform measure into the
coming congress or withhold it
until later.
Some who argue for immediate
reform point out that postponement
will bring the test nearer to the
1886 presidential election when con-
gress-if it runs true to form-will
be susceptible to political influences
and wary about invading new fields.
Some Taxes Expire
The tax issue will be raised in
by the expiration of num-
erous miscellaneous taxes which
brought in over $250,0O0,000 during
the last fiscal year. These could
be continued by resolution, but
those upon whom they fall would
have something to say about this
and thus agitate the question.
Representative Robert L. Dough-
ton Dem, N. c., chairman of the
house ways and means committee,
said today he thought it might be
possible to get along without tax
though if they were need
ed congress would vote them.
He expressed his continued, I'M
altering opposition to a sales tax.
His subcommittee which is
studying the whole tax structure
looking toward permanent reforms
will begin work here after the No
Won, ter election he said