SALES TAX RECOMMENDED

Taranaki Daily News, 19 January 1933, Page 4

SALES TAX RECOMMENDED

HOOVER MESSAGE TO CONGRESS.

ECONOMIES NOT BEING EFFECTED.

By Telegraph—Preet amb. —Copyright. Washington, January 17. President Hoover dispatched to Congress to-day a special message on the Budget balancing. He recommended that a sales tax be adopted, immediately as the best method of bringing an increase in Federal revenues. He declared that it would seem the essence of good statesmanship to spread the sales tax at a low rate upon all manufacturers except food and cheaper grades of clothing. From the progress of the Appropriation Bills through, Congress, Mr. Hoover declared it was indicated that his recommendations as to decreases, would not be realised by £20,000,000, or more. Therefore, he added, it was more than likely that the deficit would, amount to from £100,000,000 to £140,000,000. The present temper of Congress, makes balancing the Budget doubtful; in fact it is considered unlikely that any important legislation such as prohibition reform, farm relief or the new tax Bill will be completed before Mr. Franklin D. Roosevelt is inaugurated as President. '. -