Evening star., 1934-12-20
TAX
STUDY |SORDERED
BY THE PRESIDENT
Roosevelt Directs Probe
of Federal, State and
Municipal Systems.
NATIONAL CONFERENCE
| EXPECTED TO BE HELD
Morgenthau Will Take Charge,
and Shortly Will Name staff
to Make Inquiry.
BY the Associated Press.

In move intended to prevent the
overlapping of taxes, President
Roosevelt today directed the Treas
ury to investigate the Federal, State
and municipal tax systems.
A national conference on taxation
next Summer may result from the
inquiry.
Secretary Morgenthau disclosed the
plan today and shortly will name a
staff to make the inquiry.
The study will look forward TO
zones of taxation and eliminating
overlapping, Morgenthau said. 1T
will be a long-range study, with the
possibility the President may call a
conference next Summer of the va
rious agencies involved in taxation.
1T will include the question of who
collects taxes the most economically.
1t might involve the question of the
Federal collection of all income taxes.
Gasoline Tax Held Example.
Morgenthau said the gasoline tax
was an excellent example of a levy
employed by both Federal and State
and sometimes local governments.
Investigators will look into the ques-
ton of whether in such case the
Federal Government should make all
the collections and then distribute
revenue back to the States and local
governments.
The question Of taX-eXempt securi-
ties also will receive attention, along
with duplication in the assessment of
liquor taxes. The Treasury for some
years has favored a constitutional
amendment to eliminate the exemp-
ton from taxes of some Federal and
State issues.
Broadening Federal inquiries into
bank credit conditions. Morgenthau
also announced the Treasury would
make a special study in the Cleveland
Federal Reserve district to supplement
its recent inquiry in the Chicago re-
gion.
The Cleveland study will be made
| by DR.. Jacob Viner and Prof. Charles
o. Hardy, the two men who made the
Chicago inquiry.
Study May Be Extended.
Morgenthau said there was some
possibility" of embracing the whole
country later.
The reception of the Viner- Hardy
report was so good Morgenthau said,
that we have determined to do an
other after January l. We have chosen
the Cleveland Federal Reserve district.
The inquiry will be into the avail
| bt1f axx-iI
new emphasis on the real estate mort
gage situation as it affects banks"
Morgenthau said the new inquiry
will give the Treasury an idea Of bank
credit conditions in January and Feb
ruary as compared with those of last
September when the Chicago study
was made.
Morgenthau said the study. as be-
fore, will be jointly under the Treas
ury, the Federal Reserve Board. the
| Reconstruction Finance Corp. and the
Deposit Insurance Corp.
As a result of the inquiry into the
Chicago district, Viner and Hardy
among other things recommended con-
tinuation of direct Federal lending to
| industry until bank lending becomes
more liberal.
In reply to questions, Morgenthau
said the sales tax, used by number
| of States, probably will receive at
| tention in the tax inquiry.
Anything that has to do with Fed
eral, State and municipal taxes will
be considered" he added.
The Treasury head referred to ref
erences to overlapping taxes made by
President Roosevelt while Governor of
New York A special study was made
in the State.
The name of Mark Graves, New
York State tax commissioner. was
mentioned in connection with the sur
vey. but no definite selections have
been made.
Mayors Pledge Support.
Spokesman for the United States
Conference of Mayors pledged support
| to Morgenthau in the tax study.
Mayor La Guardia of New York,
vice president: Mayor T. Semmes
Walmsley of New Orleans and Paul
Bettors, secretary, discussed the prob
lem with Morgenthau.
I'VE took up the subject of multiple
tax collecting agencies" La Guardia
explained. I'VE feel the study should
be made and all are going to help on
it. Our conference adopted reso-
luton for study of Federal, State and
municipal taxes to get each into their
spheres"
Walmsley said problems of munich
pal financing could not be solved until
I'VE get every one out of the local tax
field"