Evening star., 1935-07-26
TENTATIVE ETAXb|LL
FINAL FIGHT OPENS.
House Committee Measure
ArouSes Strong Criticism
to Offset Warm Praise.
Nv the Associated Press.

BY the Associated Press.
Strong criticism and vigorous praise
today greeted the tentative bill with
which Democratic members of the
House Ways and Means Committee
propose to put the Presidents tax ideas
on the statute books.
These committee members had
drafted a measure designed to raise an
annual sum variously estimated at
$3.50 ,OOO, 600 to more than $3.50 900 900.
In general, criticism was from two
sides-advocates of a balanced budget.
many of them Republicans, and left
wing hare-the-wealth men. The
praise came from members, including
a number of Democrats, who said the
committeeman in shaping the plan fol-
lowed a middle of -the-road course.
Walsh Opens Guns.
From the Senate side came portent
of battle ahead. Senator Walsh,
Democrat, of Massachusetts in radio
speech last night In The Washington
Evening Star Forum analyzed Presi-
dent Roosevelt's proposals critically,
and said it was unfortunate" that the
question was rot presented "as rev.
enue measure rather than as a reform
measure"
Urging that action be postponed
until January, Walsh. member of the
Finance Committee. said:
None of the proposals for redis-
tribution Of wealth, Of which we have
recently heard SO much, is sound or
practical"
Even II we conclude that there
Is too great a concentration of wealth
and economic power" the Senator
continued, "and that it is the duty Of
the Government to curb it, the means
to be pursued should not be through
hastily conceived and arbitrarily de-
creed confiScatory taxes. If the pres
enJ Congress is to write and enact
new tax bill. let us aim for tax rev.
enue. which the Government so sorely
needs"
(The text of Senator Walsh's ad-
dress will be found on page AID
In brief, the measure formed by
the House committeeman calls for
stiff tax on excess" corporation
profits, ranging as high as 20 per
cent; new inheritance taxes ranging
from to IS per cent, additional
gift taxes Of to 81 per cent, higher
surtaxes on individual incomes over
$l50,000.
Presidents Plan Turned Down.
The committee Democrats turned
down, for the present at least, the
Presidents idea of taxing dividends
passing from one corporation TO an
other. 1t drastically revised the sug-
gestion for a graduated tax on cor
poration incomes.
In choosing rates for inheritance,
gift and income taxes, the commit
tee members selected neither the
lightest nor the stiffest of various
schedules under study. but took an
"in between" course. Chairman
Doughton said:
1T has been our aim to readjust
the taxes on a more equitable basis
without harming or favoring any
body"
Today the Democrats met again to
smooth up some rough edges and to
talk over again the excess profits and
graduated corporation income levies.
On Monday the bill will be put before
the full committee.
Meanwhile, though, the Republicans
opened their initial attack. Repre-
sentative Treadway of Massachusetts,,
ranking Republican on the committee,
said the maximum revenue estimated
from the new taxes is nothing like
the equivalent of the administration
extravagant expenditures"
1T is also evident" he added, that
this is a forced measure and that the
Democratic members have very little
sympathy with the Presidents pro-
posals. Under pressure, however. they
have made a gesture to save his face"
Declared Disappointment.
Another critic was Representative
Woodruff of Michigan. a Ways and
Means Committee Republican. He
described the proposals as bitter
disappointment" and comparatively
insignificant if any one intends to do
anything at all about balancing the
budget"
A number of conservative Demo-
Gratis, however, indicated their sup
port for the plan, while some of the
more liberal expressed favor for
sitter rates on large incomes.