Evening star., 1940-01-04
Defense Tax Plan
Stirs First Dispute
In Congress
Presidents Proposal
Of 'Poy-os-You-Go'
Splits Party Lines

OF Poy-os-You-6o
Splits Party Lines
By the Associated Press
Amid general congressional ap-
plause for President Roosevelt,
pleas for peace and economy, sharp
disputes broke out today over his
recommendations for special defense
taxes and continuance Of the recip-
rocal trade program.
Democrats were warm in theil
praise of the tone of the address
especially its redeclaration that the
United States must stay out of wal
while trying to promote peace. Many
Republicans joined in lauding this
statement, although some termed
the entire discussion of foreign and
domestic policies too indefinite.
There was bipartisan acclaim
too, for the promise of retrench-
ment, but Mr.. Roosevelt smilingly
| retorted to the cheers at yesterdays
Joint session that you can't cal
your cake and have 1t too." In the
next breath he talked of higher
taxation.
Parties Split Over Plan.
Just as both parties are split over
extending the reciprocal trade pro-
gram beyond next June IL, SO are
they divided over the Presidents
advocacy of sufficient additional
taxes to pay for emergency defense
spending. One or two congressman
privately predicted that no specia,
tax would be passed at this session
Both tax and tariff bills originate
in the House. Chairman Doughton
Democrat, of North Carolina, of the
House Ways and Means Committee
said a measure to extend the re-
ciprocal trade act would be intro
duced in a week, with public hear.
ings following shortly thereafter. A
defense tax bill, he said, will come
up after the trade measure is de-
bated
Senator Barkley of Kentucky, the
Democratic floor leader, said he
thought the country would approve
of the tax suggestion in lieu of in
creasing the deficit to pay for extra
defense needs.
There are many ways of levying
the tax, he said, such as lowering
income tax exemptions or super
imposing levy on the amount OF
taxes now paid. But he added he
had not heard the latter discussed
Indicating opposition, Senator
Connally, Democrat, of Texas told
reporters:
MY view is that there will not be
any heavy increase in taxation this
session. In 1941 a real tax bill will
probably be passed
Vandenberg Expresses View.
Senator Vandenberg, Republican,
of Michigan said he welcomed" the
Presidents desire to put extraor-
dinary expenditures on a pay-as-
you-go basis" while Senator Glass,
Democrat, of Virginia, 50 years old
today, remarked:
"They should have levied taxes
every time they made an appropria-
ton. We can't spend money without
getting it out of the taxpayers
pockets. I'd like to make the people
Of the United States x-conscious. 81
Chairman Walsh, Democrat, OF
the Senate Naval Committee, ex-
pressed opposition to the special tax
idea, saying:
Il personally have held the opin-
ion that money spent for our ma
tional defense should not be raised
by taxation levied on the present
generation. Future generations that
benefit should bear some of the bur-
den"
But Senator Townsend, Repub-
lican, of Delaware said, If we speno
the money we ought to raise it in
taxes. We've gone far enough in
deficit spending"
Barkley Against Compromise.
While a few Democrats and most
Republicans want to amend the Re-
ciprocal Trade Act to require Senate
ratification of each tariff lowering
pact with foreign nations, Senator
Barkley joined House Democratic
leaders in asserting that there
should be no compromise.
That meant they favored letting
the State Department continue to
make the agreements without Sem
ate approval, which under actual
treaty-making practice requires a
two thirds vote.
The President told Congress that
an extension of the act was needed
to promote both trade and peace.
He said it was not correct to infer
that legislative powers have been
transferred to the executive branch
under the trade program.
Everybody recognizes that gen.
eral tariff legislation is a congress
sional function" he added, but be-
cause of the "stupendous task" in
volved in passing general tariff laws
he termed it advisable in times of
emergency to provide some fexibil-
ity.
Mr.. Doughton agreed with this
saying that a Senate ratification re-
quirement would destroy the eff
cacy of the program"
Without rejecting on the Senate,
he said the whole law should be
scrapped rather than call for Sen
ate approval.
Glass Opposes Pacts.
Senator Glass said he favored Sen
ate ratification "as the Constitution
provides" for all treaties. Informed
that the Republicans in both Houses
had agreed to back such an amend
ment in lieu of outright repeal, he
retorted sharply:
Its not Republican and it's not
Democratic proposition. It's a
constitutional proposition"
Senator McNary of Oregon, the
Republican leader, thought the
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