The Washington times., 1935-07-12
MOST MEMBERS
WANT TO QUIT
UNTIL FALL
May Pass Must Bills and Go
Home, Leaving Business to
CryStaIize Sentiment
By GEORGE r. HOLMES
international News Service

Faced by mounting opposition
to President Roosevelt's wealth
taxing program. it appears today
that a weary and Snarling Con-
gress may. decide to quit in an
other month and return to the
Capital in the autumn when
tempers-and temperatures-are
cooler.
1t is becoming increasingly
certain that if an effort is made
to jam the revolutionary tax pro-
gram through this jaded session.
Congress won't be out of Wash
ington for months. Neithef the
leaders nor the members relish
that, and if the nod comes from
the White House they will clean
up the pending must" bills and
clear out.
White House Nod Expected
Once those bills are enacted,
the belief is prevalent that the
nod will come from the White
House.
One solution of the problem
is for the Ways and Means Com
mittee to throw the tax bill to-
gether, rush it through the House,
and then have Congress quit
without the Senate acting on it.
This rr,N11lI oFfArL
months time for study and analy-
sis OF the House bill, with a view
to correcting inequalities. Also,
it would afford time for crystal
lzation of public opinion concern
ing the whole program.
Business Set Against It
So far as the business inter-
ests Of the country are con-
cerned, that opinion is already
we'll cryStallized. Organized bust
ness doesn't like it. and is prepar-
ing bitter-end fight against it.
Such influential organizations
as the United States Chamber
OF Commerce and the National
Association of Manufacturers al
ready have sounded the call to
arms against the Roosevelt for
mula Of using the hammer of
Federal taxation to break up
great aggregations of wealth.
The opening gun in organized
business battle against the Roose-
welt program was fired today by
the chamber. 1t proposes to
marshal all the chambers of
commerce and boards of trade
IN the country to fight it by
bringing individual pressure to
bear on members of Congress.
Have Fighting Slogan
The fight will be waged around
an attractive slogan:
Not more taxes on income,
but more income to tax"
In a highly critical analysis Of
the proposals already advanced
for virtually confiScatory tax
rates on inheritances and estates,
higher rates in the upper brackets,
and a graduated tax on corporate
profits according to size, the
chamber found that existing rates
already have passed the peak of
maximum productivity"
This is in line with the old Mel
lon theory that higher rates pro-
duce less revenue than lower
rates, because higher rates drive
wealth into nonproductive fields,
such as tax-eXempt securities.
Levies "ConfiScatory"
The leVies now proposed. the
chamber said. would be destruc-
tive and confiscatory, would dis
courage business expansion and
retard recovery at the very mo-
ment business is showing signs Of
returning virility.
There are several reasons for
believing that Congress may de-
eide, to postpone the tax program.
the first and most pertinent being
that almost all the Republicans
and probably 80 per cent of the
Democrats want to do so.
Even without the tax program,
the balance of the session prom
iSeS to be filled with pickering
and hard fighting. Under the
circumstances which include
daily temperatures not far from
the 100 mark-it would not be
surprising to see a decision within
a month to quit and go home.
TREASURY CONDITION