Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-11-29
Roosevelt Opposes
Sales Tax 10 Help
Finance Defense
Revenue Problems Will
Be Discussed Tonight
At White House
Nv the Associated Press.

By the Associated Press.
President Roosevelt told a press
conference today he would look with
disfavor on sales tax to raise addi-
tional revenue for the defense pro-
gram.
The statement was in response to
a press conference question about
his supper conference tonight with
seven Congressional and depart
mental fiscal advisers.
The Chief Executive said he had
not heard Of any talk that sales
tax might be considered in any new
general tax bill in the session Of
Congress starting in January.
When asked fatty whether he
would look with favor on such a.
proposal, he replied he would not.
Discussion Exploratory.
The President told reporters that
his discussion tonight would be
merely exploratory, that both taxes
and expenditures would be exam
ined, but that no decisions would be
reached at this time.
Invitations TO the dinner and dis
cussion to follow went to Secretary
of the Treasury Morgenthau and
Assistant Secretary Sullivan, Budget
Director Smith, Chairman Harrison
and Senator George, Democrat, of
Georgia, of the Senate Finance
Committee and Chairman Dough.
ton and Representative Cooper,
Democrat, of Tennessee, of the House
Ways and Means Committee The
congressional committees handle
revenue legislation.
Tax Increases Proposed.
President Roosevelt and his fiscal
advisers seemed in agreement that
non-military budget items must be
cut to the bone. In addition, sew
eral Of the Democratic revenue lead
ers in Congress have come out for
general increases in taxes to help,
at least. balance the normal or
domestic budget and possibly to
take care of some of the increased
OUTLAWS for defense.
While expenditures in the cur.
rent fiscal year ending next June
80 have been estimated at around
sl3 100000, and Congress APP
proved appropriations and authori-
cations for this and future years
totaling more than $4,000, 900 900.
Some Congress members predicted
the l941-42 budget may call for
upwards of si5,000,e00000
Others have estimated a savings
of $500, 900 900 or more in monde
Tense appropriations, which the
Chief Executive said last Tuesday
must be held on a minimum to per-
NIT concentration of spending on
military and naval preparedness.
Higher Debt Limit Suggested.
Administration leaders have some
hope of balancing the normal
budget aside from defense. but no
one IN authority has ventured an
opinion on how much, if any, of the
emergency defense spending will
be met in higher revenues. Hence.
Secretary Morgenthau has favored
raising the public debt limit from
$40 ,000, 10000 to around SOS ,000,-
100000 TO take care of any new
deficits.
Specific tax increases have not
begun to take definite form. How
ever, some tax leaders have limited
a general hike in individual and
corporation income levies, a revision
of the excess profits tax structure.
removal of existing exemptions on
Federal, State and municipal bonds,
boosting the soft drink tax, and
increasing some of the other mis-
cellaneous excise levies. Both indi-
vidual and corporation levies were
! increased in bills passed this session.