The Western news. [volume] (Libby, Mont.) 1933-current, 1937-08-26
SEEN
HEARD
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NATIONAL
CAPITAL
By Carter Field ~
By Carter Field .

~ ~ al IC1 i lGXO S
Washington. President Roose-
velt's most spectacular fight in the
next session of congress now seems
likely to be on taxation. 1t prom
Uses to develop battle approaching
the fundamental character Of the
Supreme court enlargement fight OF
the session now about to die. The
Treasury. working under the in
structions of the President, will
have a measure already drafted
when congress convenes In Janu-
airy.
There is no lodging the fact that
the government does and will need
more revenue-lots more. All the
early session talk about economy
and balancing the budget has long
] since blown out the window. Con-
gress appropriated plenty more
than the budget. But that is only
part OF the picture Federal housing
is just starting-will expand. And
there will be other new expenses.
Biggest of all, however, is relief.
Harry L. Hopkins literally bites his
| fingernails with rage at the idea of
congress appropriating only one
and half billion dollars for relief
was especially sore because of the
proviso that this must run through
the fiscal year. He had hoped for
no stringerS-to spend the billion
and half, in six or seven months
and then ask for deficiency appro-
priation. He doesn't blame the Pres
ident for this nigardliness-says the
President asked for only a billion
and half because the White House
was told by Capitol Hill leaders that
they would not vote for any more.
Criticism of congress for this stin-
giness-for which Hopkins says
many people must suffers being
preached all through the far-flung
network OF relief agencies.
But. regardless OF any particular
development, the Treasury is going
to need more money, and the Presi-
dent is going to tell congress how
to raise it. Right there will come
the rub.
Congress knows-Maybe
Congress thinks it knows about
raising revenues-just how to keep
the shoe from pinching too pain
fully, and just how to get enough
money despite tempering the wind
to the shorn lambs. 1t has the pride
OF one signal victory over the Presi-
dent, with following demonstra-
ton OF the accuracy OF its judg-
ment. The President wanted to
eliminate the regular corporation in
come tax entirely-slap very high
tax on undistributed earnings, and
get the revenue from bigger in
dividual income taxes.
It is now obvious to any one who
examines the figures that If congress
had done precisely what the Presi-
dent wanted the Treasury would now
be in a much deeper hole than it
is. Corporations did just what the
President wanted done-for the
most part. They voted out extra
dividends to escape the new tax, and
boosted incomes as result. But
the income taxes did not mount
at anything like the rate the Presi-
dents advisers had calculated. For
tunately for the federal strong box,
congress insisted on retaining the
regular corporation income tax.
In the coming battle the conserya-
tives in congress will line up behind
Pat Harrison, chairman OF the SEN
ate finance committee, in fight to
liberalize the tax ON undistributed
corporation earnings. Harrison IA
vors much more liberal policy
with respect to putting aside sur
plus for rainy days. No conserva-
tive on Capitol Hill takes much
stock in the Roosevelt-New Deal
contention that under the new order
there won't be any rainy days. Be
sides, they slyly point out. the SUI
preme court is still functioning and
the Constitution has not been
amended. SO the White House should
revise its own weather forecasts.
All the Roosevelt tax proposals
have contained just as much So
cial and economic reform as money
raising. Next January's bill will be
no exception. IT will move against
bigness. 1t will strike anew at
holding companies. 1t will aim, in
general way, at the distribution OF
wealth.
Laugh at Farley
Ever since James A. Farley
named Senator Arthur RI. Vanden-
berg as the Republican Presidential
nominee for 1910, there has been.
lots of chuckling over Postmaster
Jim's taking in more territory, and
running the Republican partv nc