Evening star., 1936-03-28
CONGRESS AGAIN
WARNEDONTAX
BY ROOSEVELT
Appropriations Must Stay
Within Budget, Leaders
Are Told.
SENATE HEARINGS
ARE SOON TO BEGIN
Finance Committee Not to Await
Action by House on Pending
Legislation.
BACKGROUND

oASA 14bOOND-
Major provision in pending tar
legislation is that of assessing un-
distributed corporation profits and
including dividend returns in tar
able individual income. At same
time, elimindtions and dounward
TeuiSionS hare been suggested for
other corporate tares. Proposal to
be submitted to open hearings is
designed to raise S620,000,00 per
year.
House subcommittee rejected idea
OF neD processing tares, although
they Were suggested in President
RooseUelfs request to Congress.
BY the Associated Press.
A renewed warning that appropria-
tions must adhere to budget limits if
still more taxes are to be avoided, to-
day was reported to have reached Cap
itol Hill from President Roosevelt.
The notice was said to refer to the
needs Of more revenue-even in addi-
ton to the s792,OO0oOO annually
already recommended-if Congress
boosts budget figures for running the
Government.
The warning was understood to have
been directed particularly at the
Senate. That body already has jumped
House appropriations an aggregate of
Sl59. 100000 net. not counting the ST.
73O 100000 voted for the prepayment
OF the bonus and S440, 900, 900, for the
new farm subsidy program.
Letters to Leaders.
The Presidents views were reported
to have been conveyed in letter ad-
dressed to Chairmen Glass and Bu.
chanan of the Senate and House Ap-
preparations Committees, with copies
going to Chairmen Harrison and
Doughton of the Senate Finance and
House Ways and Means Committees,
respectively.
Deciding not to wait for House
action on pending tax legislation,
Chairman Harrison of the Senate
Finance Committee has announced
his committee will begin considera-
ton of President Roosevelts revenue
proposals soon with a view to making
its own decisions on such matters as
corporate taxation and processing
levies.
Mr.. Roosevelt's suggestion for new
processing taxes was passed over by
the House subcommittee which framed
a bill on which hearings will begin
next Monday.
House tax experts, who saw chance
to meet the Roosevelt revenue de.
mandS for a year from other sources,
asserted privately that if the Senate
wanted to insert processing levies they
might offer no strenuous objections.
In that event, they said, the re.
sponsibility for placing taxes on items
that go on voters dinner tables would
not be theirs in the election year.
House Hearings Plan.
The House Ways and Means Com
mittee agreed to hold hearings, start
ing Monday, on the windfall levy to
raise an estimated $lO0,OOO,0OO and on
a modified form of the corporation tax
to bring in S59l 100000.
Also to be included are proposals for
producing S83, ,000, 900 by temporary
continuation of the capital stock and
excess profits taxes and around S25,-
100000 by levies on dividends paid by
corporations to foreign stockholders.
There still remained a possibility
that new processing taxes might be
injected into the House consideration
before final action is taken.
Speaker ByrnS was talking of clear
ing the tax bill before letting a def
cheney appropriation bill carrying the
Roosevelt recommendation for $500,
100000 for relief come to the floor.
He had nothing to say yesterday on
his earlier predictions of May / ad-
journment. Many House members
are speaking now of getting away
around June i.
Adjournment Resolution.
A resolution proposing adjournment
May IL, was called up by Representa-
tive Maverick, Democrat, of Texas.
during the day, but was tabled in a
hurry on motion of Representative
Bankhead of Alabama, the Democratic
leader.
Representative Taber, Republican,
of New York, admonished that Con-
gres~ better adjourn before it appro-
PIRATES all the money in the Treasury
and all we can borrow"
The House Appropriations Commit
tee is working now on the deficiency
bill, but Chairman Buchanan said it
would be the week after next before
the relief proposition would be taken
up. He said he thought that might
take 10 days and that the bill might
be ready for the House in another
20 days.
Republican committee members have
indicated they will want to question
Harry L. Hopkins, w. P. A. admnis-
traitor, who would handle the relief
,,0ray ok aNrefIa,,o hIa Iay,o%Ia