Evening star., 1934-03-30
TAX MOVE
UP TO ROOSEVELT
Congress Awaits Word on
New Levies to Balance
Budget.

With the independent Offices bill
out of the way. congressional leaders
today were awaiting some word from
President Roosevelt as to his desires
about a new tax levy to meet the
s228, 100000 increase over budget esti-
mates which the measure provides
for veterans benefits and Government
pay.
1t was conceded that the President
might demand new taxes, in view of
the references in his veto message to
the fact that added expenditures were
proposed without an accompanying
proposal for raising funds Party
leaders, however, were not going to
make any move in this direction In
the absence of word from the Chief
Executive.
Byrnes Sees Taxes
Senator Byrnes, Democrat of South
Carolina, who took leading part in
the fight OF administration forces to
sustain the Presidents veto of the
bill. expressed the opinion today that
there would have to be either taxa
ton to meet the additional expendi-
lures, or that it would have to come
from moneys appropriated for relief
activities.
He added however, that he does
not intend at this time to offer
new tax legislation.
The principal concern, as supporters
Of the President see 1t, Is not for the
present fiscal year, or even the next,
inasmuch as emergency expenditures
are running below estimates. However.
they do vision a pinch by 1886. when,
the President has declared, the bud
get must be balanced.
The pending tax bill, already ap-
proved by the House, will be put to
a vote in the Senate next week.
Chairman Harrison of the Finance
Committee, in charge of the bill,
mittee had added to the measure
items expected to yield s72,000.00C
and bring total estimated revenues to
$3.50 100000. He thought this should
be sufficient to cover the increased
veterans and Government employe
payments.
Senator Robinson Of Arkansas, the
Democratic leader, late yesterday die
tated the following statement to news
paper men:
Il have no information as to
whether the President is of the
opinion that the expenditures author
lied in the veterans legislation will so
upset the balance Of the budget re-
Specting annual expenditures as to
make necessary the levying Of taxes
in addition to those in the pending
revenue bill.
II do know that he regards the
maintenance of balanced budget in
the sense above mentioned as of very
great importance"
New Increases Mapped.
Meanwhile, the Veterans Admins
tration went forward with plans to
put into effect the new increases. with
first attention being given to those
veterans whose compensation now has
been restored.
Concurrently, administrative officers
were preparing to get the, new pay
rates for Government workers into
effect by the middle Of next month,
and at the same time, to hand out the
back pay for two months which the
new legislation provides.
AS a side issue, members Of both
parties were speculating on the effect
that would be had on the President 8
program for the remainder Of this
session of Congress, in view Of the
emphatic overriding Of his veto Of the
independent Offices bill
While some Democratic leaders
thought it was without meaning as
applied to other legislation, others
were of the opinion it might tend to
consolidate administrative forces.
Popularity Seen Intact.
These leaders said they had no rea-
son to believe the general popularity
Of the President had appreciably
diminished. For this reason, the
leaders holding this view thought,
many Of the boilers would spring to
the Presidents support with in
creased alacrity in the future.
Republican leaders were inclined to
be reticent, but they believed con-
solidation Of morale in the rank and
file of their party would result from
the demonstration that the Presidents
desires could be rejected.
Another group was Of the opinion
that the roots of the weeks events
lay partially at least in psychology.
1t pointed to the long string of presi-
Dental commands which Congress
had carried out in the last year, and
criticisms from some quarters that
Congress had become merely the
Presidents rubber stamp.
These believed the vote was a retu-
tation of critics who contended that
Congress had lost its independence.