| Show SEEN and HEAR around the te RATIONAL NATIONAL CAPITAL r rBy By Carter Field of FAMOUS WASHINGTON CORRESPONDENT Washington Capitol Capitol Hill I Is elm ply pi n mated amazed at the falling fa oft off In 10 e 4 mall from constituents lately Many Maal of lena senators tors and represents represents- I ae lives ire are re right fight now DOW receiving less lese than 10 to per cent of their normal Dormal mall mallID ID In the face of the fact fad that a weeping new tax tal bill Is I being writ writ- ten to be I Imposed m pOled on 00 the country countr this situation Is II absolutely unique The answer according to some timers old Is II that the people back home borne do not lIot understand what Is le goIng go- go goIng Ing on For one thing most people who have bave been rending reading the newspapers pers perl II about bout the new lIew tax lax bill asDine as- as same Dine that the whole thing Is aimed at t the big ble rich corporations particularly par par- the ones with big sur pluses One senator told the writer that he had Inquired In big bis own home hOlDe town town town-he he happens to come from a very small city and amI bad had discovered the that not a single lingle business busl busi ness near man In town thought the new tax bill would bit hit him hi ml I IThe The only people who who- are Interested interested Inter Inter- ested he continued are stockholders stockholders stock stock- holders In some lame corporations and more of ot them are pleased phased than alarmed They think the new law lawwill lawwill lawwill will force their corporations to toa pay a bl bigger dividends and they are all for that Ilot nut the the really amazing fact appears appears appears ap ap- pears to be that owners owner of little corporations are convinced without without without with with- out knowing anything about It y that they thel will be exempt that exempt that that only the big fellows fellow will bear bea the new burden And AnI this does not make them very angry Whereas senators point out the committee program In the house et o provides provide a It whole schedule of ot new taxes for corporations corporation with Incomes ranging from a year downward down ward as AI well as u from a year upward Have Wrong View Most of these three owners owner of small corporations read the original press stories lories about the new tax tRl plan plan- that President Roos relt wanted to eliminate the present corporation Income tax the present corporation i. i capital stock tock tax tn and the present I excess pro profits t. t tax tar tn and substitute this lI sliding eliding scale tax on oa undistributed earnings for all of them They still hold that view despite the obvious fact that congress has hili no DO Intention whatever of repeating repealing the corporation Income tax tn and may maT even retain In whole or In part the capital stock tock and excess excelS profits profit taxes In 10 short the effect of the new newbill newbill newbill 2 u bill when completed will be to add the new taxes tues to the old not notto notto to substitute the new for the old as the President recommended Nor Is II there any an doubt that the President will accept the changes f p Nothing else elle will 11 provide the revenue rev rey sane the government must have bave especially as II congress Is I. determined to tb go 10 as II lightly as us possible on ex ex- else cise taxes With respect to little corporations those thole with adjusted net Incomes of or less there lees there Is I. a It slid 1112 1 lag Ing scale cale tax tn In the house boulle committee commit commit- tee plan which goes IOl'S up to per percent percent cent on all undistributed earnings Quite a liable slice ce out of of para earn toga Inga which a struggling little tittle cor con corporation might be anxious to me use mein in 10 building itself up I ISo So the little corporation Is far from exempt I Sliding scale eal taxes talt's In the com corn committee plan for corporations with Incomes from a year far up upend up- up and end this ibis Includes Include a very great Ireat many corporations In small l towns which are not retarded even enn at home dome as II anything but little fellows fel tel lows rise lowe rise much more sharply These slide aUd up to 42 per cent centon centz z- z on on all aU undistributed earnings earning In 10 excess ex ex- ecu cess of 61 per cent of the tb net Income Income In In- come come It n Is la true that there are several classifications on which the burden It U eased eased railroads railroads banks corporation corpora corpora- tion with debt obligations requirIng requiring ing tag the tb discharge of a It certain part of the debt every everl year etc Out Dot the owner owners of or the little corporation corpora tion bons who think that their small small- seas nee I la is going to prove an urn ura- brella brena are due for a Tel very sett rude tude w awakening Tariff or on 01 Textiles Textile Bearing In to mind the Important part that the closing of so 10 many New England textile mills duo allegedly at least leut to a flood of or Imports Im lm ports of elf Japanese textiles played In the Island congressional election last year rear a sweeping Re Re- victory Republican member mem mem- t ben bees of the tb house bouse ways way and means committee will write a very erl politically po po- minded minority report J against the new tau tat bill 0 One On of ot Its It features feature will be the theof of suggestion of new excise tariff taxes tues particularly on textiles These would follow the pattern of If the called so-called excise but really tariff taxes Imposed several leveral years ear ago ao on oil all copper coal sad ami lumber The minority report will stress s. s the he thought that new taxes tare would not Dot be necessary If the would 1 only curb Its r i Ji o. o J oi i 0 spending pending and devote It lb It attention to wa ways way to save money instead In- In stood stead of searching for tor new methods methods meth meth- ode of ot extracting money from tax tu- payers It will lay great reat stress stress stress' on the Idea that every dollar so 10 taken from a IU taxpayer Is III a dollar which otherwise would be spent by bl bythe bythe the taxpayer In some lome way wal or other and hence would ploy play Its It part port In providing employment The TIll Idea of an Import excise tax on tel textiles tiles Instead of a n tax on 00 corporations corporations' corporations corporations' corporations corporations' cor cor- undistributed earnings Is le expected to make a big hit lilt In New I England New York and New Jersey Jersey Jer Jer- sey and will be calculated to cause caulle a little discontent with the Democratic Demo erotic cratic program In the Southern textile textile textile tex tex- tile section particularly In the tile Caro Caro- lima linns Incidentally If any strength should develop for It the proposal al alwill will be most embarrassing to Secretary Secre Seere tary torI of at State Cordell Hull who Is still enthusiastic about his bis reciprocal trade agreements and Is gradually hammering down the protective tart tarIff tariff tar tar- iff itt wall by bT this system Many casual casual casual cas cas- ual readers reader overlook the point that every eve time lull Hull agrees to a reduction reduction tion In a duty on a given product In a treaty with one ono country countr that reduction promptly applies also alIa In favor of every everl other country with which the United States ha has a most favored nation clause treaty And that means most of them bem Appeal to Farmers Farmer For example when In the tile recent re rev cent tent treaty treat with Canada the duty duly on Imported liquor was reduced from 5 to a gallon the same reduction promptly applied to Scotch and Irish whiskies With a view to appealing to the farm tarm belt the Republican ways and means committee members will wilt recommend heavy excise tariff doties dutiel duties du du- ties tiel on agricultural products of all III sorts This Is aimed at offsetting offsetting offsetting offset offset- ting the appeal of the New l Deals Deal's AAA farm bene benefits rs now changed chanell to soil oil erosion payments This Thill phase of ot the report while report while no attention will be paid to it by bl bythe bythe the Democratic majority majority majority-is Is expected expect expect- ed To 10 prove r rather ther embarrassing to Democratic house members For Forthe Forthe Forthe the majority members member of the ways and means committee have agreed that there are to be no excise taxes whatever In the bill despite the fact that President Roosevelt and the Treasury department have Insisted there should be Of course courle the President and the treasury contemplated very different differ ent eat excise taxes tales from those the Republican Re Re- publican way ways war and DI means po nil IDem mem members bell bers will recommend The They were thinking of something more like Ilk AAA processing taxes Quoddy Project may get a new nt dress and not only respectable respectable respect respect- able but an actu I asset to the New Nev Deal teal Having pullet a couple of ot rab bits bite out of the Maine hat In thelast the thelast last two weeks Roosevelt and Farley FarIe Farley Far Far- Ie ley would ve e nobody In Washington Wash ington It If the they adopted a suggestion tion from the Navy department It ItIs ItIs ItIs Is simply to abandon Quoddy as II a large electric prod producing plant and convert It Into a naval base I Enough power could be produced produced pro pro- by bl the tides to justify justify-hi justify In political arguments at any rate rate rate- the original claims about harnessing harnessIng harness harness- Ing the tides There Is le plenty of ot water there It Is pointed out and anil of ot sufficient depth to produce a alood good lood harbor providing a couple of ot breakwaters are built lint Hut the big argument In favor tavor of It Is III s that such luch a naval base balle would be at the nearest point In the United United Unit Unit- ed States to Europe 1 I It Is II almost two days days' sail all closer to Europe than New York and one days day sail closer than Boston Doston Causes Cause Some Worry It ha has baa been especially worrying because the marching up the hill hili hilland hilland and down again with congress turnIng turnIng turn turn- Ing Sag Ing thumbs down on a project the President bad had started with the President fishing during the funeral fu fu- fu funeral naturally attracted consider considerable considerable able attention In Maine The state of or Maine folks folka politIcos here think are re a very nry headed hard-headed lot with strong objections to seeing their money wasted So If the project could be turned Into something that could be defended as useful useful cape espe especially dall daily It If the tho Maine folks could be bo convinced that the new naval base bate would add materially to Maines Maine's Industries In In- retreat retreat could be turn Into Ictor victory Quo Quoddy dl then could actually be made mad an In asset In setting getting out a good Democratic vote oto In September with resulting psychological benefit to Democratic workers In other states as 81 the they labored for Roosevelt Roosevelt's election elec tion 1100 In November All of ot which Is la the more Interesting Inter Inter- eating esting because ause a lot of sentiment I le I. developing on Capitol Hill Wit against spending all the billion and andA n A half dollar relief appropriation the President has baa demanded for boondoggling projects project e s r tc I L. 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