Evening star., 1935-06-28
Gag Rule May Be Applied
to Limit Bill to RooSe.
veIt's Goal.
WOULD CURB CRY OF
GO. P. FOR REAL LEVY
Heavy Rates to Balance Budget
Sought as Administration Plan
Remains Nebulous.
By the Associated Press.

An emphatic denial of reports that
new attempts might be made to delay
the Presidents wealth distribution
taxes until next session because OF
revolt threats was given today by
Speaker Byrns.
There had been rumors that after
some weeks of study the House Ways
and Means Committee might renew
its original suggestion that Congress
go ahead and adjourn now and the
committee start hearings in November,
drafting new bill for the next Con-
gress. convening January 3. 1886.
Asked about those reports, Byrns
replied:
There was a positive. emphatic
agreement by Democratic members of
the Ways and Means Committee that
they would bring out a tax bill this
session, and that it would be sent over
to the Senate.
Sure of House.
Such assurances were given to
Senator La Toilette and others who
wanted to add these new taxes to
the nuisance tax extension resolution
which Congress put through yesterday.
I'm sure it isn't going to be put of
over here"
President Roosevelt. meantime.
signed the resolution extending the
s500,000, 900 in nuisance" taxes for a
two-year period. Otherwise these
would have expired Sunday night.
The imposts, principally excise
taxes on commodities, such as gaso-
line, furs. chewing gum, automobiles
other than trucks, tires and tubes, re-
frigerators, also include continuance
OF 3-cent postage and taxes on te!e.
grams and security transfers.
The signing was with a minimum
of formality minutes after the resolu-
ton was received from the Capitol.
To Speed Other Bills.
Outlining the general legislative
program until the tax bill is ready for
House action, Bryns said he would at
tempt to put through other must"
bills speedily. and then the House
would take three-day, or longer. re-
ceSses while waiting for the Ways
and Means Committee to act.
He described as simple matter"
the gold bill, which he had ready for
Chairman Steagan of the Banking
Committee to introduce. He expressed
the hope that both it and the amend
ments broadening power of the Ten
nessee Valley Authority could be
passed by the House week after next.
Gag" rule procedure to kill of un.
wanted amendments to the tax pro-
gram meanwhile was considered by
House leaders.
They spoke of such drastic action to
block moves to write in what some
Republicans called budget -balanc-
ing" taxes and to repeal many exist
ing levies. Even a tariff fight ap-
peared in prospect if the new legis-
lation were opened for amendment.
Would Limit Goal.
Although the administration pro-
posed bill was still in nebulouS form
House leaders we're determined to
try and limit it only to taxes on
inheritances, gifts, corporate incomes
and individual incomes over 100000.
They will seek an agreement to this
end among Democrats on the House
Ways and Means Committee. Later
the gag" rule may be proposed il
they believe it necessary to prevent
changes on the House floor.
Chairman Doughton. Democrat, of
North Carolina, and Democratic
members of the Ways and Means
Committee conferred for three hours
yesterday with Secretary Morgenthau
and other Treasury officials. but no
conclusions were reached on the new
tax rates.
The only definite decision made.
Doughton said, was that the Presi-
dents tax suggestion require most
careful and orderly procedure" in
drafting a bill. Also because of the
preliminary work necessary, it was
agreed that public hearings on the
measure could not begin before
July 8.
Smell Demands Real Tax"
Representative Smell of New York,
the Republican leader, was one Of
those who yesterday demanded a
real tax bill"-one that will balance
the budget" Another was Represen-
tative Reed, Republican. of New York.
who said the tax program as outlined
by Chairman Harrison, Democrat, Of
Mississippi, of the Senate Finance
Committee, would not raise enough
revenue "to make a drop in the
bucket"
The levies as proposed by Harrison
would place a tax of 60 to 80 per cent
on incomes over $1,000,000; 4 to IS
per cent on inheritances over $780,
600. and 10 to 171a per cent on corr
poration incomes. He estimated that
these, plus gift taxes at undisclosed
rates, would yield about 1000, 900
annually.
Some House liberals, including Rep
resentative Rankin, Democrat, of
Mississippi, said these proposed rates
were not stiff enough" to bring a
wider distribution of wealth" as out
lined by Mr.. Roosevelt. Other members
served notice they would seek repeal
Of the Federal gasoline tax and also
existing levies on furs, toilet articles,
electricity and the like.
It is to head OF these moves that
the Democrats on the Ways and
Means Committee want an agree
ment to limit the bill to the four
taxes recommended by the President.
Doughton said he did not know
whether this could be done, but we
can't" he said, write new tax law.
We haven't the time" Indications now
are that the House will not act finally
on the legislation possibly until late