Evening star., 1938-04-15
Federal Salaries
WOuIdBeLeyied
On Under Plan.
MESSAGES TO co
TO CONGRESS SOON
Hearings on Plan for
$l,25O,OOO.OOO Relief
Start Monday.
B. She Associated Press.

B. She Associated Press.
President Roosevelt. pressing his
drive for business recovery, said today
he would ask Congress shortly to
strengthen anti-monoply laws and to
permit taxing the income from all
future Government bond issues and
Government salaries.
He plans two messages to CONGRESS
on those subjects, he told his press
conference.
The President. in his message yes
terday. asked Congress to be definitely
aware" of the need for eliminating
exemptions on future bond issues of
all kinds of Government agencies and
for Subjectine salaries and wages of
all kinds to Federal and State income
taxes.
Are Now Exempt.
State employees now paying a State
income tax are exempt from the
Federal levy. and Federal employees
paying Federal tax are exempt from
State levieS.
Roswell Magiil. Undersecretary of
the Treasury, estimated that if all
present Federal. State and local Secur-
tiles and salaries were taxable, the
additional Federal income tax revenue
would be about Sl55. 100000 per Year
Mr.. MaglllS estimate Included S7O.-
100000 additional taxes on FEDERAL
securities interest. $4,000 900 on State
and local securities interest. and
Sl5,000000 on State and loca! salaries.
He said many Government securities
were owned by educational and
Charitable institutions which are tax
exempt and that about siX-tenths of
the existing Federal debt already was
subject to the Federal income surtaX.
Campaign Goes Forward.
The President talked to the large
gathering OF reporters while his re-
covery campaign went forward on
many fronts. He had told the Nation
last night that existence of our
democratic institutions depends on
defeating the forces of depression.
House Appropriations Committee
members lost no time in arranging to
start hearings Monday on Mr.. Roose-
velt's request for sl.250. .000,O 900 for re-
lief in the seven months starting
July I.
Congressional leaders had not de-
cided, however. whether to attempt to
incorporate the entire recovery pro-
gram in one big bill Senate Demo-
cratic Leader Barkley said he planned
to confer with House chieftains
promptly about the course to be
followed
House Democratic Leader Rayburn
said legislators who had discussed the
program with the President received
the impression no new legislation
would be necessary for the Public
Works Administration.
If it should be, it probably would
be included in the relief appropria-
ton bill, since the Appropriat alton
Committee has handled all P. W. A.
appropriate anyway.
Two Already in Effect.
Two phases of the recovery program
already have been put into effect.
The Treasury has desterilized its
gold holdings and Congress has en-
acted bill to expand the Recon-
struction Finance Corps powers so
it can lend more freely to business
and to States and municipalities
Federal Reserve Board officials. fol-
lowing the Treasury's release of the
1892 100000 gold credit. were ex-
pected promptly to reduce bank re-
serve requirements by S750,OO0, 900 in
I
pansion of the Nations credit base.
At his press conference, the Presi-
dent expressed belief that taxing the
income from future issues of bonds of
Government bodies could be accsm-
pllshed without constitutional
amendment. He said the Constitution
permitted taxation of income from
whatever source derived without ex-
ception.
That was common English Ian
guage and he follows that. he said
Mr.. Roosevelt added there was a
school of legal thought that held ex-
emptions of existing bond issues could
be removed without an amendment,
but he said he was not asking for that
He said he would endeavor to get
from the Treasury an estimate on how
much money could be raised by the
two propositions.
Asked about his suggestion for SIM
plyfying supervision of banks the
(See SPENDING, Page A-3)
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