Salt Lake Telegram | 1931-11-16 | Page 1 | G. O. P. Chiefs Agree to Seek Tax Increase

E. E 0 DP P. P AGREE TAX INCREASE Watson Changes Views on i Plan After Conference With President SMOOT ALSO IN FAVOR Higher Rates on Larger In Incomes Incomes Incomes In- In comes Seem Certain I Br Sc Associated WASHINGTON Nov O 16 Con 16 Con gressional lonal Republican leaders today today today to to- day agreed to sponsor ta tax Increases at nt this session Senator Watson Vatson the Republican senate leader who has consistently opposed new taxes at this time said today after a conference with President President dent Hoover that a n boost is inescapable inescapable ines capable At the same time Chairman Smoot of or the senate finance committee announced announced an an- flounced there will have to be fur fur- ther taxation Watsons Watson's reversal was accepted on Capitol hill bill as settling a Republican tax program What form of or new or increased rates will be recommended is uncertain uncertain uncertain un un- un- un certain pending further conferences Between con congressional leader and President Hoover and Secretary Mellon While both Senators Watson Valson and Smoot favor a sales tax they agreed it was very problematical that con- con s gre-s wo would ld approve such a plan BOOST SEEMS CERTAIN Increased rates on the larger incomes incomes incomes in in- comes appear certain Senator Watson atson wt would uld not state slate the presidents president's views on the tax problem but the fact that he changed position after his White WhiteHouse WhiteHouse House visit was Interpreted on Capitol Cap Cap- itol liol hill as a sure sign that the tho administration administration administration ad ad- ministration would recommend new taxation Treasury officials fear tear a deficit this year o of almost ItIs It Itis Itis is known that Secretary Mellon would not like to lo meet this gap by borrowing without congressional au au- au- au Watson Vatson believes that both Increased Increased increased In In- creased taxation and additional borrowIng borrowing borrowing bor bor- rowing by the government will be necessary this year The deficit last Jast year was As for the general legislative program program program pro pro- gram Senator Watson Valson believed the president would wold send up his recommendations recommendations without any specific plea plen for partisan or nonpartisan con con- We Ve cannot presume that politics will be played Watson Vatson said Therefore Therefore There fore ore there is no reason leason to plead pleada a against politics Certain Certainly the presIdent president pres pres- ident cannot be in the position of begging and supplicating I e