The Washington times., 1935-12-06
WOULD RAISE
ABOUT 1000
MILLIONS
President Is Worried
Over High Court
Ruling on AAA
BY GEORGE DTRNO
international News Service

WARM SPRINGS, Ga, Dec. b.
New revenue legislation hung ten
tatively over the tax-burdened
American public today because OF
the Roosevelt Administrations
doubts about the soldiers bonus
and the AAA farm program.
A definite trial balloon had
gene up from President Roose-
velt'S cottage here at Warm
Springs warning that a manu-
facturers' sales tax was every
close" to enactment if the Su-
preme Court outlaws AAA process
sing taxes and Congress passes
the bonus.
Bonus payment at this time
would stand the Federal Treasury
about $500 million dollars. The
processing tax, which takes care
Of controlled crop production,
runs around 400 millions a year.
Short Session Wanted
Senator Walter E. George CD
of Georgia, chairman of the
senate Finance Committee. who
expressed the opinion a sales tax
was very close" should the SUI
preme Court outlaw the AAA, re.
vealed that latest estimates placed
before his committee indicated
such a levy-at the rate OF Z12
or 3 per cent-would raise about
1000 million dollars annually.
Senator George and the junior
Georgia Senator, Richard B. Rus
sell, conferred with the President
yesterday. They agreed that wnaC-
ever problems were placed before
Congress it should adjourn not
later than April IS.
But a distinct impression was
left that Mr.. Roosevelt regarded
an important part of his program
"in the laps of the gods" This re-
ferred not only to the controver-
Sial Administration issues pending
before the Supreme Court-AAA'
iva, the Guffey Coal Act and the
Rankhead Cotton Act-but the
most definite threat the next Con-
rress will override a presidential
veto to pass the soldiers bonus.
Former Opposition Recalled
Should the laps of the gods"
hold adverse decision, the PreSi'
dent, it was predicted, will fol
low each reverse from the Su-
preme Court with a special mes
sage to Congress suggesting ways
out, Senator George pointed out
that the Executive should hardly
present a full legislative program
to Congress at its opening be-
cause of the uncertainties still re-
posing with the Supreme Court
and Congress itself, so far as the
bonus is concerned.
There was considerable Specula-
ton here, however, among obSerV-
ers who recalled Mr.. Roosevelt's
stand on a sales tax back in early
1888 when he was still President
elect. Former President Hoover
suggested a manufacturers sales
tax but Mr.. Roosevelt'S public OBJ
iections went far to defeat it.
Wealth Tax Revision Hinted
On the other side of the balance
sheet, big business can get some
encouragement from Senator
Georges prediction that last years
wealth-tax bill would ;3e revised
next session with particular EN-.
phasis on correcting injustices
which Secretary of the Treasury
Morgenthau himself has decided
accrue from the workings OF the
graduated corporation tax.
New neutrality legislation Civ
ing the President more discretion
in denying exports to nations at
war will be a big feature of the
Administration lie g iSlative pro-
gram, so far as Mr.. Roosevelt is
concerned.
The budget and a few other in
cidental measures will wind up
White House recommendation
except as the Supreme Court may
unset the apple cart,