Evening star., 1934-01-06
QUICK SENATE 0. K.
SEEN FOR RUM TAX
S470,0C0,0C0 Measure Is
Passed by House-Com-
mittee Gets 1t Monday.
BY the Associated Press

BY the Associated Press
Adopted late yesterday by the House,
the S470. 1000, 900 Ii lor tax bill will go
before the Senate inance Committee
Monday with quick approval forecast
Senator Robinson, Democratic floor
leader, said Senate action will follow
Immediately. in order to benefit from
the s2-a-gallon rate on distilled spirits,
now taxed at Sl1o.
First bill to be acted upon at this
assembly, the measure was passed by
the House by vote of 388 to 5, with
one member voting present.
More than 30 amendments were Of
fered to the liquor, wine and beer rates
in the House, but all were beaten down
by the powerful Democratic majority.
An amendment by Chairman Dough-
ton of the Ways and Means Committee
and approved by the Treasury, Great
ing a stamp system to show the tax
has been paid, was adopted without
opposition.
Recommitting Bill Defeated
Otherwise. the measure was passed as
reported by the committee. but not
until a motion by Representative
Knutson. Republican, of Minnesota. to
recommit the bill to levy higher rates
on imported wines and champagnes
was defeated, 2S7 to l03.
Six Democrats and four Farmer-La-
boriteS Joined ninety-three Republic
ans for the motion. Eleven Republicans
and one Farmer-Laborite voted with
two hundred and seventy-flve Demo-
Gratis against.
Those voting against final passage
were Allen, Illinois; Brumm, Edmonds
and McFadden, Pennsylvania. Repub-
licanS, and Hoeppel, Democrat, of Cali
fornia. Knutson. Republican of Mime
sofa, voted present.
The 81. rate applies to each PROOF
gallon or wine gallon when below proof
and a proportionate tax at like rate
on all fractional parts Of such proof
or wine gallon.
A $3.50 tax is levied on blended and
rectified liquor. Under the Doughton
amendment the stamps are to show
whether liquor is blended or straight.
Chairman Doughton estimated that
on the basis of an annual 100000, 600
gallon consumption, S300,000,0 900 would
be returned in revenue from this levy.
A fiat s5-a-barrel rate on beer of all
alcoholic content was imposed, re-
duction from Sc on all brew contain
ing more than 30 per cent. $780,
000, 900 annual revenue was estimated
from this source.
Rates were graduated from cents
a gallon on wine of less than IA per
cent alcoholic content, up to 40 cents
gallon on that of less than "a per
cent. All fortified wines and brandleS
in excess of "a per cent alcohol bears
the So spirits rate.
Will Contain Hill Proposals.
Meanwhile the Ways and Means
Committee decided to reopen hearings
next Tuesday on the $27O, 100000 gen.
eral revenue measure. Doughton SAID
| he hoped they would be concluded
within two days. the bill drafted and
submitted to the House for action in
the latter part of the week.
Treasury officials are to be called
| to give the committee an estimate OF
its revenue needs. Indications are that
| the general bill will contain virtually
all the changes proposed by the Hill
subcommitte to tighten the income tax
law. abolished consolidated returns and
do away with foreign tax credits.
Debate on the liquor tax bill was
concluded Thursday and its reading for
amendment began at the opening OF the
session yesterday.
Amendments we're offered to change
the liquor tax anywhere from the
present rate of $1.10 to S4 gallon
while efforts were made by Representa-
| tives from brewing towns to reduce
the S. a barrel tax on beer first to 81
then SO and $3.35, but all failed.
In quick succession, the House also
rejected proposals to return so per cent
OF the revenue to the State, exempt
alcoholic beverages going into medi-
cines and extracts from the 81 rate
and impose higher taxes on rectitieo
and blended liquor.
Representative KnutSon proposed tC
tax imported sparkling wines ano
champagnes at rate of 42R cents q
half pint, 3712 cents more than the
domestic product.
He explained France was the blgges'
producer of these types of wines.
Fears Danger to U. s.
do We owe France anything?" he
asked. I'VE let her have four billion
dollars and when We want her to con-
tinue to pay it she tells US to go to hell.
Agreeing that France should pay hel
debt, Doughton said, however, that
such an emoargo on French wines
might affect American sales to France
He added United States irnportations
| from France were $44 ,000, 900 in 1882
| while expectations to that country to-
tailed Sill sec, 600.