PRESIDENT OPPOSED

Rotorua Morning Post, Volume 1, Issue 94, 11 December 1931, Page 5

PRESIDENT OPPOSED

(Press Assn.-

AMERICAN FINANCE DEMOCRATS LIKELY TO SIDE TRACK TAXATION PROPOSALS BUDGET CANNOT BE BALANCED

-By Telegraph — dopyright).

WASHINGTON, Wednes. The Administration's recommendation for raising taxes went to-day to Congress, and at once met with Democrat opposition. The President, Mr. Hoover, and the Secretary of State, Mr. A. W. Mellon presented a dismal story of Pederal finances along with the budget deficit verging on 4,000,000,000 dollars, (£800,000,000). The President detailed the need for meeting the deficit that promises to exceed that figure by the end of the next fiscal year. Mr. Mellon advoeated higher taxes to take effeet next month, and to apply to this year's incomes. The indications were that the plan will be side-tracked in a Demoerateontrplled House where revenue legislation must originate. The Administration plan ealls for increased taxes on personal and cprporation incomes and inheritances, tobacco, capital and stock saies while

new levies would be imposed on automobiles, radios, telephones, telegraph and cable messages, amusement ticlcets, cheques, drafts and realty saies. The postal charges would be boosted. The exemptions from income taxes would be lowered, to include 1,700,000 new contributors. During the next 18 months 1,310,000,000 (£262,000,000) will require to be raised under the plan to meet what Mr. Mellon described as '-a real emergency." The tremendous deficit figure Mr. Hoover used was arrived at by adding £180,400,000, the unfavoivrable balance of last year to £424,600,000 deficit expected this yehr, and the estimated shortage of £28,340,000 in 1933. Balancing the budget for the pre-

sent year being out of the question, Mr Hoover wrote: — "We should endeavour by thel inerease of taxes and rigid curtaihnent of expenditure to balance the budget for the next fiscal year, and except to the extent of the r.mount required for statutory debt requirements we should assure its balance, including statutory requirements, for the fiscal year following." The increased taxation is proposed for a thirty-month period.