| Show mm k m- m K m v vA 4 iA A Washington Daybook I t cy f By RODNEY WASHINGTON Sept 24 24 Andrew Andrew Mellons Mellon's big bond issue will supply the he treasury with money to meet its I current obligations but It will wUl not I forestall the fight for higher taxes in inthe the he next congress By issuing in term long bonds and in one year one ear certificates certificates the treasury Js Is able to bandIe handle han ban dIe dle the deficit for tor the fiscal year 1931 with something left over for the present present present pres pres- ent fiscal years year's deficit Nevertheless despite the fact that money Is cheap now this piece of financing financing fi fi- fi increases the national d bt by bj more than a billion dollars The government ended its 1931 year June 30 with a deficit of about and the rate at which revenue has since been received indicates s that the deficit for the fiscal 1 cal year 1932 will be even larger Expenses will wUl be larger arger despite the economy pleas thanks hanks to Increased public works the farm board veteran appropriations and similar drains and there seems no prospect of an increase in revenue except by increased ta tax tah rat rates s Deficits are now bein being caused by lower ower Internal revenues due duc to lower incomes on account of the depression and smaller tariff receipts due to the reduction in foreign trade along with Increased governmental expenses The administration which counts on the Mellon financing plan to take the steam out of the proposals for increased increased in in- creased tax taxes cs will fight to the last ditch to avoid any income tax boost during a campaign year and in this It t Win will be aided by most Democrats who fear to have their party part blamed for or any such increase at a time when the they are optimistic over chances of political victory a a 4 Proponents of tax increases will be beed led ed by the Progressives s who will demand demand demand de de- de- de mand an increase In revenue abandonment abandonment aban aban- of the policy polley of borrowing from Peter to pay Paul and adoption adoption tion of the theory that the rich should pay a larger burden of ot taxation They DUTCHER will wm tie up their drive it is expected I with their attempt to obtain direct I federal relief for the destitute They are unanimous In the sentiment that taxation Is the most Immediately feasible method of de de- distributing the national wealth and that the increasing concentration of or that wealth 1 is one of the most disturbing disturbing dis dis- dis factors in the present situa tion There Is is however er a widely held belief that higher taxes would tend to retard recovery from the I de-I da- da and it now seems reasonably reasonably bly safe to say that if Jf the next congress con con- gr gress ss votes any tax boost it will be passed in the form of increased inheritance in in- taxes possibly Joined witha with a n. new gift tax to prevent escape from Inheritance taxes Many D Democrats who would be afraid to support larger levies on incomes Incomes in comes of corporations a and d wealthy Individuals would be willing to go after af af- af ter tei estates through the inheritance ta tax and gift tax Some of the Progressives Progressives Pro Pro- including S Senator Couzens of Michigan and Congressman Ram Ham seyer of Iowa appear to favor this method of Increased taxation rather than larger income taxes in the near future With a a. greater Democratic representation representation representation on the house ways and arid means committee it is not unlikely that with the Influence of Ramse er erand and one or two other Republicans that very important nt committee may for the first time have a majority definitely in favor of the estate tax Even some administration senators have declared for larger death taxes It 11 is at least interesting If it no not significant that Senator Simeon Fess chairman of the Republican national national na na- na committee has publicly committed com coni himself to the view that the Is suffering from a too rapid concentration of wealth and that Increased increased increased in in- creased inheritance taxes i is the best means eans of handling the problem |
