Evening star., 1935-08-07
BUSINESS HEADS
CLASH WITH TAX
PLAN SPOKESMEN
Senate Committee Hears
C. of c. Group Denounce
Program.
CLAUSEN CHARGES
CONFISCATlON MOVE
McFarlane for More Radical Pro-
gram and Mayor McNair
for Moderation.
BY JOHN c. HENRY.

JoAAN -
Big Business and the Roosevelt Ad-
miniStration came to blows today.
Representing the former were four
members of the United States Cham
Der of Commerce. appearing before
the Senate Finance Committee to Le-
nounce the Administrations determi-
nation to enact soak the rich ak
program. AS champion for the White
House appeared Robert H. Jackson,
counsel for the Bureau of Internal
Revenue.
In between were Representative Nc
Farlane, Democrat. of Texas. who
sought an even more radical program,
and Mayor William McNair. Demo-
crat, of Pittsburgh, who appealed for
less taxes, less spending, less tariff
and less communism.
C. of C. Speakers.
The Chamber of Commerce speakers
were Fred H. Clausen, president of
the Van Brunt Manufacturing Co. of
Horizon Wis. who appeared just be-
fore the luncheon recess. and the fol-
lowing three who were to appear later
this afternoon: E. c. Alvord. attorney,
of Washington; Fred R. Fairchild. pro-
fessor of political economy at Yale
University, and Roy c. Osgood, vice
president of the First National Bank
in Chicago.
ClauSen, first chamber witness. dealt
with the surtax and corporation in
come proposals principally, terming
them ''tantamount to confscation''
and highly discouraging to enter
prise"
I'VE do not accept the estimate Of
$270 100000 as the yield from the
taxes in the House bill as a realistic
one" Clausen said "Eut If S27O,-
100000 more or less. additional rev.
enue is to be sought as the objective
it is obvious that the gap between
receipts and expenditures could be
narrowed by such an amount more
quickly, with less economic injury. II
the Government cut that amount
from its expenditures.
Punishment Of Size.
at Is difficult to understand. and
more difficult to justify, the urge to
punish size merely because of size
Every individual who has built up a
siZable income must inevitably in the
process pay wages and salaries to a
large number of others.
THE contribution of the manufac-
turing industry for relief of unem-
ployment exceeds the amount paid
out by the Government for public
works and direct relief. Other lines
of business also did their share
Amounts of such magnitude could be
paid out only by the larger corpora
tions. Yet it is this type of corpora
ton which would be Disseminated
against were an effective graduated
tax put into operation"
Agrees With President.
Throughout his testimony jackson S
creed today was that he would prefer
to see the Presidents tax recommen-
dations carried out in full"
In amplifying this stand the Treas
ury official commended the principle
of graduated corporation income taxes,
urged strongly the imposition of in
tercorporate dividend taxes, and cast
some doubt upon the advisability of
increasing the excess profits taxes.
jackson declined, however, to COM
NIT himself on the point of where
individual income tax increases should
begin. The President recommended
this increase start at s1.000.O0O in
comes, while the House bill starts at
$4,000.
McFarlane Heard.
Jackson's prepared statement today
dealt only with corporation taxes
Yesterday he spoke on individual in
come, inheritance and gift taxes.
Representative McFarlane. Demo-
crat, of Texas followed Jackson before
the committee. Identified with the
so-called liberal element in the House,
McFarline made a fight in that body
to increase rates on inheritance and
gift taxes. He also attempted to per-
suade the House to include INTERIOR
porate dividend taxes in the legisla-
ton.
The tax bill is still expected to be
reported to the Senate the first of next
week, although there are still many
witnesses to be heard. Some leaders
are expecting final Congressional
action early enough for Congress to
adjourn on August IT, despite the
warning yesterday by Senator Borah,
Republican, of Idaho that there will
be much discussion" in the Senate.
Continuing his sharply worded de-
(See TAX, Page 81