Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-02-15
PROVIDE MORE
eva MONEY
Congress Busy on Bill Like
ly to Increase Estate,
Income Taxes.
Proposed Bill Provides Fed
eral Control of All Stock
Exchanges.
BY CONG. JOHN PAUL KVALE.

|
| The coming week will witness
House action on the new tax bill,
discussed in a previous weekly let
ter, under a most severe gag" rule.
1t is interesting to note that admin
istration leaders, despite their prom
Use at the opening of the session to
discontinue this practice in the pres
ent session, have resorted to the gag
on practically every occasion that
measure of any magnitude has been
brought out. Their tactics in this in
stance, they say, are adopted for the
dual purpose of defending against eff
forts to adopt a sales tax amendment,
and of resisting the efforts of small
groups with large numbers of amend
ments.
AS a matter of fact, the gag rule
will help against the sales tax, but
that fear seems entirely. groundless,
for even some who supported the
sales tax last time it was before the
House have since abandoned it in
view of the fact that so many of the
individual states now depend upon
it for their revenue. True, some of
the reactionaries are still advocating
it, but their number is relatively
small, and they are the more helpless
in view of the fact that raising $780,
O00, 900 by a sales tax from the very
people who are receiving the $780,
100000 CWA funds does not appeal
as reasonable to many thinking mem
bers.
Higher Income Taxes Likely.
The interesting point about the pro-
cedure is that both the Democratic
and Republican leaders on the COM
mittee joined in the request for the
rule, which is even harsher than the
rule for the Smoot-Hawley tax bill
that the Democrats howled and pro-
tested about. In this case, however,
the conservative elements of both
parties fear higher rates on estates
and on individual and corporate in
comes, and the possibility of a gross
income tax to reach the billions
which corporations now escape pay
ment upon by showing a net annual
loss even though they may have made
large dividend payments and other
similar payments. So the lineup will
be liberals and conservatives, regard
less of party lines, and the party
pressure will be strong enough to
adopt the rule and pass the bill. And
that will be the shortest chapter in
the tax bills history, for the Senate
action and the proceedings in con-
ference cannot be rushed in similar
manner.
message asking Congress to place all
stock and commodity exchanges under
Federal control to curb abuses against
investors and to prevent the ex-
changes from being used purely for
speculative purposes, bills were in
troduced in both Houses designed to
carry out this purpose. 1t will be
passed, certainly, and take its place
beside and in conjunction with the
Federal Securities Act enacted at the
last session. While, as one writer
puts it, the message and the resulting
bills strike fear in the hearts of the
bulls, the bears and the wolves" OF
Wall Street, legitimate business and
honest investors will not need share
that concern, for it's real purpose Is
only to drive the gamblers and the
dishonest spectators from the mar
ket and at the same time make it
difficult or impossible for willing vic
tins of small means to enter the
market on small margins.
Paralyzing Blow to Stock Exchanges.
1t represents another example Of
bold and constructive action in field
that has long been recognized as
needing drastic action, but where only
talk has been heard in years past.
It is a complete surprise, as are many
of the moves of the present admin
istration, and it took the financial dis
trict some time to realize the para
lying blow that had been admins
tered. Latest statements seem to
point to acceptance of the legislation
by the better element among them.
and there should be little difficulty
on the part of leaders in steering It
through to enactment about in its
present form.
Not even the fact that CWA and
relief funds are exhausted and that
the President himself stressed the
need for haste could get the emer-
gency appropriation bill to the Presi-
dents desk before the week ended.
Minor differences arose between the
House and Senate which necessitated
the delay, so it will be Tuesday, and
perhaps Wednesday before the bill
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