The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1934-12-13
Eipht Added Taxes

burden of the country thru the ac-
ton of the next session. Altho the
White House has made no public
announcement, it is the UNDER
standing that the leaders in the
senate and the house who have
taken unequivocal positions against
a tax increase in 1886 were reflect
ing the view they had obtained
from President Roosevelt in addi-
ton to their own conviction that
this is bad time to increase the
levies which individuals and busi-
ness interests must pay for the up
keep of the government.
During the current weeks there
has developed some indication, it,
indeed, it is not an assurance, that
there will be curtailment of feder-
al expenditures. just how this is
going to be accomplished is not yet
clear but it can be stated on high
est authority that curtailment OF
the outgo from the treasury is ex-
pected to be accomplished. In max
ing that statement, think / ought
to add that the curtailment is con-
templated with respect to emerg-
ency agencies and does not include
any of the various new proposals
from segments Of house or senate
memberships involving additional
heavy outlays. Az an example OF
this type of expenditure I refer to
the proposal for immediate pay
ment of the soldiers bonus. That
there is a strong demand for this
action there can be no doubt. Yet
on the other hand there Is bitter
opposition both in congress and
among administration leaders to
the program that would entail
payment of something like two bill
lion dollars to the former soldiers,
sailors and marines of World war
days.
The question of taxation always
is of an explosive character. Hence,
the urge on the part of some of the
new dealers for an increase in tax
alton so that emergency spending
might be made to appear more In
line with government income has
precipitated an issue very quickly.
The proposition had hardly begun
to gain momentum when Senator
Robinson of Arkansas, the Demo-
cratic floor leader of the senate,
and Senator Harrison of Mississ-
ippi, chairman of the senate COM
mittee on finance, both were call
ed to Warm Springs, Ga, for a
conference with Mr.. Roosevelt. It
was said at that conference that
taxation was not the only thing
discussed, but nevertheless, both
leaders came away from the tenn
porary White Hou0s with the an
nouncement that there would be no
tax boost in the 1885 session of
congress.
simultaneously Rep resentative
Hill, Democrat, of Washington,
chairman of a subcommittee of the
house ways and means committee,
made known his opposition to tax
boost. Mr.. Hills committee has de-
voted it's attention TO survey of
tax rates and revenues require
ments and has reached the conclu-
sion that to increase the levies now
would be to retard recovery as a
result of additional imposts on bus
mess. The Washington represent
alive feels that the present ta x
structure will function properly
and provide sufficient revenue just
as soon as there is return OF
something approaching normal
commercial activity. BE thinks
there might be some simpliifcation
of the laws applying to the various
forms of federal taxation, but he
considers them adequate as revenue
producers if and when there is a
normal volume of business.
In this connection it seems advis-
able to recall that Secretary Nor
genthau of the Treasury sent a
freshman team Of brain trusters to
England last summer to study the
British tax system. While this
committees findings and recon-
mendations to the secretary have
not been made public, insiders tell
me that the results of that investi-
cation added very little to the sum
total of knowledge concerning our
own problem.
Not So Bad Financially
Mr.. Hill, in discussing the gov
ernment's financial condition, gave
it as his opinion that 1--WE are not
in such bad shape now" His state
ment referred to an approximate
balance between receipts and wha,
the administration calls ordinary
expenditures. These expenditures
go for support of the regular gov
eminent establishment and no part
of them is used in maintenance OF
recovery operations such as the
Agricultural Adjustment admins
tration, the Public Works admins.
tration or the Reconstruction FL
ance corporation. The funds uset
by these alphabetical agencies
come from the sale of bonds. 1t i.
borrowed money and sometime