Evening star., 1939-12-18
Hanes Resumes
Tax Structure Study
For House Report
Dotd Are Received
From Business on
Attitude Toward Levy

AttVuuS uOWUIU Levy
Undersecretary of the Treasury
John w. Hanes returned to the
Treasury Department today from .
trip to Texas and resumed his su-
pervision Of tax studies, out of
which . report is to be made to
. tax subcommittee of the House.
With differences of opinion still
existing in congressional circles as
to the necessity of new revenue bill
at the next session, during an elec-
ton year, the Treasury has had no
word from the House Tax Subcom-
mittee to stop its tax study.
Mr.. Hanes has accumulated q vast
amount of data from a representa-
tive cross-section Of business re-
garding its attitude towards the
present tax structure. This Is to
be studied as one of the bases for
a report to be made by the subcom-
mittee, headed by Representative
Jere Cooper Of North Carolina. The
Tax Subcommittee is part Of the
House Ways and Means Committee
which would handle any new reve-
nue. measure.
Some Oppose New Bill.
Whether President Roosevelt will
ask Congress in his forthcoming
budget message for an increase in
the Federal revenues, remains to be
seen. During this election year
there have been many indications
that the administration would pre-
fer to exercise economy, and pre-
sent Congress with as few contro-
versial problems as possible. There
are some administration leaders on
Capitol Hill who have gone so far
as to indicate they do not want q
new revenue bill at the coming ses-
sion.
Mr.. Hanes has made it clear that
there is no new specific program as
vet for changing the entire tax
structure. even In the face of the
fact that he and his experts are
making studies of the situation
growing out of their inquiries to
business.
Administration spokesman have
indicated that they are eager to find
out first how much revenue may be
expected from the present tax struc-
ture, especially If there should be
an increase in business.
Warn Against Boom.
Other administration leaders have
been outspoken in their warnings
against a war boom and excessive
increases in prices, but all appear
to be hoping that business will en-
Joy steady and sound increase. If
such an increase should develop
after the first of the year, following
the expected seasonal drop after
the holidays. 1t might give sub
stantial boost to Federal revenues.
From some quarters recently
have come predictions that a real
boom is on the way. DR.. Colston
Warne, associate professor of eco
nomics at Amherst College. told a
Baltimore audience yesterday that
war boom and imitation may carry
the national income beyond the
500 600, 900. 900 a year level in the
next IL months. He is president
Of the Consumers Union.
DR.. Warne based his prediction
upon present trends and the move
ment of war orders and prices in the
19l4.l8 period. The combination of
European war orders and American
re-armament, he said, probably will
bring about credit expansion
which. one started. will develop into
boom OF major proportions.
Forecast Sharp Price Rise.
Let European war orders con-
tinue," he said. "and let our own re-
armament get we'll under way. and
the chances are we shall have a
sharp price rise comparable to that
OF 1876. I can see no factors at
present in the picture to halt such
a trend. We have plenty of gold as
basis for credit expansion, and
although we have certain central
banking controls, I do not see how
they could be applied in such a way
as to stop wild boom caused by
war orders"
At the Department Of Agriculture
experts are reported to be making
studies at the request of the Presi-
dent for a plan to levy processing
taxes to meet the expenditures of
benefit payments to farmers.
The n,1ostion of whofhor tho Ho,
ernment will have to raise new taxes
to meet its regular and its increased
defense expenses also ties in with
the pending question as to whether
the $45 1000, 100000 Federal debt
limit, now fixed by Congress, should
be lifted. There is strong opposition
in some quarters to extending this