Evening star., 1938-01-19

b the Associated Press.
James H. r. Cromwell, husband of
the wealthy Doris Duke Cromwell,
recommended to the House Ways and
Means Committee today immediate
reduction and ultimate repeal Of all
forms OF income tax.
He also advocated revision OF estate
and gift taxes, and adoption Of
manufacturers sales tax on finished
consumer goods.
Mr.. Cromwell said such scientific
tax system" would end "the unjust
and uneconomic discrimination be-
tween the taxation Of corporations
and of unincorporated business enter
prises."
Furthermore, he said, it would tend
to encourage distribution Of wealth
and enhance labor's bargaining power.
He testified at hearings on proposals
of . Ways and Means Subcommittee
for revising the tax structure.
Would Encourage Investments.
Il believe" Mr.. Cromwell said, that
q just and ever-increasing distribution
OF wealth can be gained only by en-
couraging the investment Of savings
in productive enterprise and that at
tempts to obtain greater equality by
political action through income, estate
and corporate surplus taxes will de-
feat this purpose and will undermine
the capitalistic system
He suggested that investors in new
productive enterprise be given more
favorable treatment because they make
possible ultimate improvement in liv-
ing standards and strengthen the bar
gaining power Of all workers.
Mr.. Cromwell, whose wife inherited
a tobacco fortune. suggested complete
overhauling of the estate and gift
taxes, which he said give rise to exces-
sive concentration of capital and to
speculation.
Representative Vinson, Democrat.
OF Kentucky asked Mr.. Cromwell
what sales tax rate he would suggest,
but no definite answer was made.
Would you put the same rate on
bread and meat as you would on
whisky and cigarettes?" asked Chair
man Doughton.
Yes. sir" was the emphatic reply.
Quizsed on Helping Poor.
At one point, Representative Cooper.
Democrat, Of Tennessee. inquired:
Then the only way you know Of
helping the poor is by shifting taxes
from the wealthy to the poor?"
That's putting 1t in q peculiar
way" Mr.. Cromwell answered. "As
. matter Of fact IS per cent of taxes
are now paid by the poor believe
II you can relieve capital of taxation
you will increase capacity production
and thus increase the income of the
poor and their standard of living"
Asserting his interest in the tax
problem was unselflsh, the witness said
his family and wife are wealthy peo-
pie and some s5O,O00. 100000 of tax
exempt securities are provided in
which they can invest and pay no
taxes.
"Oh liberty, liberty! What crimes are
committed in thy name Mr. Dough-
ton chanted. Every time something
like this is proposed. they say it is in
the interest OF somebody else"
Cut Government Revenue.
Mr.. Vinson said Mr.. Cromwells
proposals for modifying and repeating
taxes would reduce Government rev.
enues S2.622, 900 900 on the basis of
1887 returns.
He asked what the tax base would
be for a sales tax.
Mr.. Cromwell said it would be s26,-
100000 900 on the basis of wholesale
prices, including food. clothing. medi-
cine and all other commodities.
Meanwhile. Senate Finance Com
mittee members forecast the Senate
would vote a more drastic revision Of
taxes than is being considered BY the
House committee.
There is widespread sentiment. they
said. for complete repeal Of the un-
distributed profits tax and more thor
ough adjustment Of the capital gains
tax
Chairman Harrison said the Senate
committee would get to work as soon
as the House committee reports the
tax revision bill, without waiting for
House action.