The Indianapolis times., 1936-01-31
NEW TAXES NEEDED FOR
FARM PLAN, CONGRESS IS
WARNED BY ROOSEVELT
Methods of Financing
Bonus Still in Doubt,
Says President.
PATMAN CALLS CAUCUS
Initiation Bloc Leaders
Summon Supporters
to Meeting.
BH United Press


WASHINGTON, Jan. 81
In the face of a sputtering
congressional imitation move
ment, President Roosevelt
warned today that the new
Administration farm program
must be financed by taxes, but
said that methods of financing
the $2,249, 100000 bonus still
were undecided.
The question of possible additional
taxes to amortize the bonus, Mr..
Roosevelt said, is being studied by
Administration advisers.
Congress, seeking to avoid dipping
into the taxpayers pocket during
this political campaign year, made
clear that the Administration will
have to initiate any new taxation. A
bitter battle has been threatened
in Congress over demands for infla-
ton to cover new bonus expend-
itureS.
The Patman initiation blocs
steering committee of % House
members meanwhile called caucus
for tomorrow of all supporters of the
bonus initiation method of payment.
Rep. Patman said that more than
200 members would consider the
question of formal alliance with
other initiation groups.
S7OO,O0O,OOO Needed for Farm Aid
Chairman Robert L. Doughton of
the House Ways and Means Com
mittee, where tax legislation must
originate, said:
"Of course If the Administration
calls on us to do something we will
call on them for suggestions" =
In regard to the farm program.
Mr.. Roosevelt made it clear that.
if the new farm bill now before
Congress passes, it will have to be
paid for through substitute taxes.
Probably $500 900 900 would be neces-
sary to carry the program in addi-
tion to a proposed measure to re-
cover S200,000,000 which the Su-
preme Court ordered returned to
processing taxpayers after invali-
dating AAA.
Doughton Expresses Views
1t was estimated that about $780,
100000 year would be required for
amortization of the bonus.
Rep. Doughtons remarks were
predicated on the assumption that
a new revenue bill would be need
ed to cover both the farm program
and bonus costs. Congress has ac-
cepted as a matter of course that
either new processing taxes or pos
sibly substitute excise levies would
have to be imposed for the farm
program. No fight has been indi-
Gated on this part of the Admins
tration program.
Rep. Doughton said he considered
it premature" to ask Secretary of
the Treasury Henry Morgenthau
Jr. to come before his committee
to discuss the revenue situation.
Urges Detailed Tax Study
1T is premature he said, until
they indicate to us they desire
some legislation in regard to taxes,
which they haven't as yet"
The North Carolinian said he
planned to go to his home state
this weekend regardless of the tax
situation.
He urged again that detailed
study of the tax situation be made
and if possible new tax measure
be put off until next January.
Mr.. Doughton said he would op-
pose any committee motion to ask
Mr.. Morgenthau to appear unless
the Administration first asks us TO
look into the tax situation, other
wise it would look as though We
were in fever for taxes"
Senate leaders may circumvent
the drive of House inflationists by
attaching the appropriation meas
ure to either the Independent Of
fees or the Deficiency Appropri-
alton Bill, Senator Carter Glass
3D., Va0 said
The Independent Offices and the
Deficiency Bills are before the Sem
ate Appropriations Committee, of
which Glass is chairman. Both al
ready have been passed by the
House.