Evening star., 1935-12-13
CHAMBER URGES
TAX CUT AS SPUR
Committee Asks Members
:: to Idorse Sales Levy,
as Substitute
Ry the Associated Press.

by the Associated Press.
American business men were called
on today to indorse program calling
for reduced Federal expenditures ana
taxation.
This was embodied In report from
the Committee on Federsl F1nance OF
the Chamber of Commerce Of the
Unitsd States, which went out In
referendum form to the $500 organi-
cations in the chamber. s
IN connection with the tax changes
it was proposed that excise taxes
designed to produce substantial por-
ton of Federal revenues should De
:evied at low rates on articles that
are not of the first necessity"
The committee, calling for repeal OF
many taxes approved by the last Con-
eress, said levies for Government now
cripple business, retard recovery ana
threaten our economic system
THE opportunity of the employed
worker to improve himself is reduced,
the Group declared. The unemployed.
the work dole or the relief dole OF
Government can never be q salts
factory substitute for productive en-
ployment.
"a Taxes Held Unreasonable.
/, "The investor and the salary earn
ar as the owners and managers OF
property, and all who are dependent
upon their enterprise, are compelled
To surrender to the Government an
unreasonable proportion Of any re-
wards that may be gained from
thrift and hard application OF personal
effort"
The chambers membership recently
voted Overwhelmingly against what
were called trends in New Deal legis-
,lation. Spokesman said the vote
ranging upward from 95 per cent
against the trends constituted a man
date to the national organization
,jhenceforth to oppose laws embracing
,policies described in the questions.
q Some Republicans in Congress ex-
pressed delight with that referendum
results and said it was representative
of both large and small business men
On the other hand, some Democrats
charged the questions were loaded
and said they did not take the poll
Seriously. Some local chambers res
fused to vote on the ground the ques-
,tions were political" or vague" and
three resigned from the national
group.
Sample Questions.
Among the questions placed on the
new referendum ballot were:
4. /. Do the combined expenditures Of
Federal, State and local governments
now demand so great proportion OF
the total national income that they
= discourage business, threaten the Sc
curity of wages and savings and retard
. employment?
: 2. Should a well-co-ordinated fiscal
plan be adopted for reduction Of Fed
. eral expenditures to bring about. in
the near future, a balanced budget
without increased taxes, in order to
create that confidence necessary for
! recovery and increased employment?
: 8. Should emergency expenditures
, necessary for the relief of the deSti-
tute unemployed be provided by and
under the control of the States Of
their residence, with reimbursable adj
vances from the Federal Government
! only. on application Of those States
or municipalities which are unable to
obtain the needed funds for that
purpose2 q
4. Should Federal expenditures,
. through use of the taxpayers money
, or by means of advances or loans for
the purpose of developing or extend
ing Government activities which
compete with private business be dis
continued?
Coercive Tax Questioned.
s. Is the use Of Federal taxing
power primarily to compel States or
indiyiduals to conform to social and
economic readjustments, with revenue
only incidental, contrary to sound
pubic policy?
The latter question was regarded as
hitting at New Deal laws which i'm
pose such taxes as are levied by the
A. a. A. and the Guffey soft coal
control act, q"
The committee recommended rapid
LIQUIDATION" Of emergency agencies,
taxing Of corporate earnings at q
fat rate, repeal Of excess profits,
capital stock and Federal estate and
inheritance taxes and the sales tax.
Fred H. Cfausen of Horizon, Wis,
president Of the Van Brunt Manu-
featuring Co., was chairman of the
committee which drafted the report.