Evening star., 1935-07-01
Hastings Proposes
Special Tax Session
BeHeIdinNouember

A Republican proposal for a special
congressional session in November to
consider the administrations tax pro-
gram was offered in the Senate today
by Senator McNary, minority leader,
on behalf of Senator Hastings. Repub-
lican, of Delaware.
Hastings, who was out Of the city,
proposed in joint resolution that
Congress adjourn when it completes
the remainder of its legislative pro-
gram and return to take up the reve-
nue. question November %.
Though hearings on President
Roosevelt's tax-the- wealth program
will not start until next Monday. pub
lie discussion of it continued today.
Senator Vandenberg, Republican, of
Michigan, mentioned as a Republican
presidential possibility. attacked it as
mere sop to political strategy"
He said in a statement:
IF we are to have a new tax bill
let 1t be a real tax bill and not
mere political appeal to mass pre-
judice"
The National Association of Manu-
facturers also criticised the proposal
to graduate levies on corporate in
comes. with the bigger corporations
most heavily taxed. The association
called it on attack upon the welfare
of millions of consumers and upon
millions of thrifty people who have
invested their savings in our business
corporations
New Measure Being Drafted.
Administration leaders, with the aid
of legislative drafting experts. con-
tinued work today on the new measure
for an inheritance and gift tax and
higher levies on big corporate and
individual incomes. The House Ways
and Means Committee plans to start
hearings July 8.
Vandenberg demanded that the
Government work toward a balanced
budget. He called for broadening
of the income tax base in any new
tax program. opposed higher corpora
ton levies and suggested that inheri-
tance taxes should be used for social
objectives," but not income taxes.
The formal statement of the Mich
igan Senator, who has been mentioned
as Republican candidate to oppose
Mr.. Roosevelt in 1886. placed him in
direct conflict with word given Demo-
cratic leaders by the President to con-
fine new taxes to his recommenda-
tions.'
Vandenberg contended the presi-
dental plan for inheritance taxes,
higher levies on incomes above ST.
coo, 900 and graduated rates on corpo-
ration incomes would neither sup
port the public credit by adequately
overtaking our tragically mounting
deficit, not "redistribute wealth" pur-
suant to the demands Of those whom
the President would placate."
Lists Five Principles.
Assailing inconsistent spending" as
leading to uncontrolled imitation"
Vandenberg said he preferred the al
tentative of taxation. He listed these
five principles:
First, that national economy must
again dedicate itself to the pursuit
of a balanced budget =. 1t will do
no good to refill the barrel II the
bunghole remains wide open.
Second the new tax pro-
gram should raise the money to do
the job and not merely flirt with it.
The income tax base must be
broadened. '"'
Thirdly. the tax program must be
practical. I do not believe in using
income taxes for social objectives
But I do believe in using inheritance
taxes for social objectives. We
must be sure we do not destroy wealth
in our efforts to redistribute it.
"Fourthly, corporation taxes are
business taxes. At the moment
it may be better to emphasize taxa
ton upon the individual after the
earnings of business have been redis-
tributed to him.
Finally. any such program must
include the elimination OF tax
exempt bond priylegeS."