Show II 5 I ROOSEVELT ROOSEVEL A ATO ASKS FOR TAX HIKE a TO SCALE D DOWN BIG BG FORTUNES FORTUNES' Senate Group Declines To Incorporate Program In Pending Revenue Act Opinions Differ as to Call Can for Action This Session Br Dv v Associated Press Picas WASHINGTON June 20 The senate finance committee refused today to add any of at President Roosevelt's wealth tax proposals In la approving the house resolution extending extending ex ex- tending of ot nuisance and excise levies expiring June 30 0 Higher taxes on the wealthy were proposed yesterday by the president in a special message to congress He asked this action to reduce large Incomes and to prevent concentration tion Lion of ot great wealth Considerable difference of ot opinion opinion ion existed as to whether he wanted th the program m passed this session There was a clear i implication ho he wanted most of it enacted before adjournment but some leading Democrats Democrat privately opposed this The senate committee voted to ex extend extend extend ex- ex tend the nuisance ce taxes for one year instead of two voted oud by y the house Message i. on Page 13 U Senator La toilette Follette P. P Wis proposed proposed proposed pro pro- posed that an inheritance tax ta and higher surtax and Bud corporation taxes be bo incorporated in the resolution but Chairman Harrison announced the I sentiment of the committee was that the proposal should go through without amendments La LaFollette Follette said however he would renew his fight on the senate floor Close confidants of the president meanwhile passed the word that he is considering a new and broad broadN N R A designed to be In a B sense a companion measure to the tax program It was emphasized at the tho White WhiteHouse House that President Roosevelt is standing on the language of his special special special cial message and leaving the procedure pro pro- for the present at least to congressional leaders Before the ilie senate finance committee committee com corn met Senator La Follette Pro g. g Wis announced h he would attempt to tack on an inheritance tax and and higher surtaxes and corporation corporation cor cor- income taxes Chairman Harrison expressed hope this effort would not be made He said he ho believed it would en endanger endanger endanger en- en danger adoption or of the house resolution reso reso- lution before the tho nuisance taxes and tariffs taris expire Democratic leaders indicated privately privately the presidents president's program was wasso was wasso wasso so extensive and required so much study that it should go 0 over until next year despite the fact that 1936 is a campaign year Tax drafting experts estimated it would take at least a month to frame a s' abill bill to carry out the presidents president's dents dent's program Democratic members mem mem- bers hers of the finance committee contended contended contended con con- tended the tho congressional session would be prolonged six weeks if it new taxes were pushed now Secretary declined to make public the administrations administration's estimate of what the new tax program pro gram would return The Tho secretary said he would avoid any y interpretation of the mea measure ur e until he was asked by congress If they want any technical in information la hi- formation based on the message wo vo have it ready for them he hes s said ld Congressional chiefs indicated President Roosevelt would be consulted consulted con con- suited again to remove remove any doubts doub about whether his the share tax program is must for this ses sea I sion aloft Approval Disapproval The tax plan intended to break up great fortunes and reduce large Incomes in incomes in- in comes was greeted by expressions of gratification from the left and criticism from the right It was presented to congress late yesterday with a presidential comment that it Continued d on Page Puo Two PRESIDENT ASKS p TAX INCREASES Continued from rate Pro One wo would ld enc encourage the very v ry rys ry's s soum sound und policy polley of a wider distribution o of wealth The revived N R A which the president is said to be considering was wan pictured by some of his advisors ad ad- visors who declined to be quoted quote by name as ns an effort to increase mass purchasing power Thus nus they said it would be akin to the tax plan They foresaw v the possibility t at another surprise message on the tc subject might bo be forthcoming One l Jajor Major If i There is one major if on N R A AIt It was said The Tho plan may be recommended rec ree- rec- rec if it the administration can a definition of ot interstate commerce com corn merce perce it considers satisfactory and able ble to stand the test of Authoritative e sources said the tho president had remarked that he heas was as inclined to believe congress I could constitutionally define interstate interstate interstate inter inter- state commerce so the federal government gov- gov could supervise some things over which the supreme c court urt Meld Held tho the old N R A had no power y The Tho quest it was said is for words to define what the constitution constitution constitution tion means when it says congress can dan regulate commerce among the several leveral states I f Advice Disregarded I Jt Yesterdays Yesterday's tax ta message it became be be- came camo clear dear today was written as assent assent assent sent to congress against the advice of f nearly all the high Democratic advisers on Capitol hill hili After counseling counseling counseling coun coun- against such an idea some sometime sometime time lime ago some of them had been predicting recently that no new taxes would be recommended But the president it was said authoritatively authoritatively authoritatively wrote the message without their knowledge and sent it to the capitol in a hurry so pressure would not be brought broughton on him to withhold withhold withhold with with- hold it Five Points The message suggested 1 Inheritance succession and legacy taxes in addition to those now levied on estates and suitably suitably suit suit- ably higher gift t taxes to prevent avoidance of th the othe other levies 2 A definite increase in present pres- pres present present pres pres- individual individual indi indi- ent taxes on very great vidual incomes 3 Graduated corporation Income Income income in In- come taxes ranging from 10 to 16 16 per cent instead of tb the present present present pres- pres pres pres- ent flat 13 l per cent 4 Elimination of unnecessary nary sary holding companies in all lines es of business business' through taxation 5 Submission and ratification of a constitutional amendment p permitting the federal federal government government govern govern- ment to tax future issues of state and local securities and allowing state and local g governments to tax future federal securities sec Doubt on Fifth Point The president pictured the fourth point as something to be done ultimately ultimately ulti not at this session of con con- gress There was some doubt Inthe in inthe the minds of many congressional leaders as to how pressing the fifth point was as considered Most agre agreed d. d however that the inheritance gift hi higher her bracket income an and corpo corpO o p rate income taxes were offered as ought legislation and probably must Chairman Doughton D. D N. N C. C of the house ways and means committee committee com corn called his committee to meet t today day for a a discussion of the mes mes- sage lIage Long Hearings Loom The forecasts were almost unanimous unanimous that if the taxes were left to the committee long hearings would be necessary prolonging tho the session indefinitely One leader Chairman OConnor O'Connor D. D N. N Y of the house rules committee interpreted interpreted interpreted inter inter- the tax proposals as must asserting they would delay adjournment adjournment adjournment adjourn adjourn- ment of congress until ing Generally the tax plan drew praise from those Democrats who commented and from some Republican Republican Republican lican liberals with other legislators contending that it would retard re recover re- re over cover covery Lifesaver cr for Democracy For instance Senator Neely D. D W W. Va called the message a lifesaver lifesaver lifesaver life saver for Democracy and Senator La Follette Pro Wis said it was wasa wasa wasa a splendid message while Representative Rep Rep- Snell of New York the house Republican leader termed the message a stump speech said the president was trying to get the jump on Hucy Long and predicted that the plan would retard the Improvement improvement improvement im im- Im- Im provement hoped for this summer Senator Norris R. R Neb said the program suits mo rue per cent both on the inheritance tax and the corporation tax Representative tive Martin R. R Mass described it as not the kind that will vIll be helpful helpful help- help ful xul to recovery at this time Wealth From Community Effort There was no immediate comment on the presidents president's contention that wealth does not come merely from individual effort but from a combination com corn of individual effort and of the manifold uses to which the community community com corn puts that effort The subject of budget balancing waa was touched upon in one part of the message It said that money raised by the new inheritance taxes should be bo applied t to the reduction of the national debt Specific tax rates except for corporation corporation cor cor- incomes were omitted from the presidents president's suggestions Therefore the general conclusion was that he was waa willing for congress congress congress con con- gress to work out the schedules it it- it 3 sell self But talk was revived about a aplan aplan aplan plan submitted to the senate fi finance fi- fi nance nanee committee b by Secretary Mor Mor- In Bonus Bonu Discussion Sugg Suggesting sting that to to could be raised annually proposed that the present present present pres pres- ent income tax rates be applied to Inheritances and gifts to pa pay the soldiers soldiers' bonus bonus in in case c congress passed tho the bonus Present income rates range from 4 per cent to nearly 63 per cent The president himself proposed nothing more definite on Individual income taxes than increases fo for tor higher brackets He said that a 5 r 1 5 man with a income pays twice as much as the man with I while the man with pays at the same rate as the one with only I Lower Incomes Still E Eyed ea That illustration however was no not interpreted as meaning the president had closed the door to increases increases in- in creases on lower brackets At any rate taxpayers ers generally I agreed that imposing high inheritances inheritances ances on top of the existing estate I taxes cs axes certainly would break up huge fortunes They calculated that under under uner un un- der er the schedule if a fortune of was left to tone toone one ne person it would shrink to less Jess tHan Kan bythe by the time all taxes were verc paid |