Evening star., 1936-02-23
BY the Associated Press.

ny TIC AsSOCiHtcQ FTcsh.
Word from the White House to keep
Thursday night open" quickened ex-
pectation Of congressional leaders yes
terday that President Roosevelt will
soon make known his tax recon-
mendations.
The executive, 1t was learned, has
asked his legislative chieftans to be
ready for q meeting with him fixed
tentatively for February 27, after his
return from Hyde Park, N. Y.
Mr.. Roosevelt told newsmen Friday
he expected to study the tax situation
during his absence from the Capital.
He was in Cambridge, Mass, last
night, and was to 60 from there to his
Hyde Park home.
News Of the conference was accom-
panied by an intimation that the
Executives proposal would be submit
ted to Congress either next Friday or
early in the following week and
brought to the floor of the House after
fortnight,s hearings by the Ways
and Means Committee.
Fear Court Objections.
At the same time, it was learned
that the present delay in the formulS.
ton Of the administration program has
been occasioned largely by careful ex-
animation and re-examination to
fortify 1t against constitutional objec-
tions based upon the Supreme Court s
A. A. A. decision.
For several days the general ex-
pectation has been that the new pro-
gram would be confined to providing
funds for financing new farm bene-
f1ts. The court ruled the processing
tax was an unconstitutional exaction
when applied for the purpose of regu-
lating agricultural production.
However, the farm plan has been
changed from one of limiting acreage
planted. to one Of encouraging con-
servation Of the soil with subsidies
for acreages planted to crops which
will increase fertility, decrease ero-
sion and promote flood control.
Thus what some some described as
narrow constitutional point has been
presented. The administration Is, OF
course, anxious that tax legislation be
drafted In such manner as will mini
mize the possibility of invalidation by
the courts.
Leaders Are Grateful.
Word OF the conference came CRATE
tully to congressional leaders, some OF
whom had been complaining privately
against their apparent exclusion from
administration councils on the always
politically and economically perplexing
problem Of taxes.
The cost OF the revamped farm pro-
gram has been limited to $500, ,000, 900
per year. Leaders in Congress expect
the tax program to likewise limited to
providing 100000, 900 to finance the
payments in the next flscai year. to-
gether with provision for recaptur,ng
lmpounded processing taxes which
escaped the Federal tax collector by
order of the Supreme Court.
One means of accomplishing this
which has been considered with appar-
ent favor in some oft1cial circles Is
the imposition of an excess profits tax
upon the professors, so drawn as to
siphon the funds into the Treasury, il
and when they appear as profits.
Took Data to Hyde Park.
Thursdays conference would follow
by two days President Roosevelt's re-
turn from q visit at his Hyde Park
home. When he left the White House
yesterday bungling brief case of tax
data accompanied him.
A movement was growing in the
Senate to expand the program into a
general revision of the income tax
schedules. which strangely had the
backing OF combination of Middle
western Progressives, Republican Con-
servatives and anti-New Deal Demo-
Gratis.
Led by Senator Byrd, Democrat, OF
Virginia. who disapproves the New
Deal spending program, and advocates
billion dollar tax bill. they were
planning to support proposals of Sena-
tor La Toilette, Progressive, of Wis
consin, for a broadening of the tax
base by a cut in exemptions and an
increased rate all along the line.
How far a movement of such IN
usual component elements would 20
remained matter of conjecture. Al
ministration leaders were confident 1t
u0,,1S MT ~ ono cn *ba;r ~ n tor;t;n.