Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-04-17
INCOME TAX RATE
DUE FOR REDUCTION
BY NEXT CONGRESS
BY HARDEN CLOFAX
Leased Wire Service to The Journal.)


Copyright, 1929
WASHINGTON, April 14.-Presi'
dent Harding probably will ask con-
gress at its next session to reduce
the income tax. This weeks dis
closure that the treasury will re-
ceive this year 100000 in IN
come taxes more than had been OK.
pected has placed the subject be
fore him in a decidedly different
light from what it stood in when
every dollar available was spent be-
fore it came into the tax collectors
hands.
To assist the president and his
advisers in their study of the in
come tax situation, with a view to
lowering the annual levy, If pos
sible, Secretary Mellon plans the
early creation OF a tax revision
board, to be composed OF six mem
bers, three of whom shall be en-
ployes Of the treasury department,
and three specialists not in the gov
eminent service. Mr.. Melons plans
already have gotten along to the
point where he is almost ready to
announce the selection of the treas
ury's representatives. on the board.
Two of the three men under CON
sideration for appointment to the
board are said to be James A.
Bright, assistant deputy commits
sioner of Internal revenue, in
charge of the income tax unit, and
A. w. Gregg, attorney in the office
of the solicitor of the bureau of
cialists in income tax administra-
ton.
Will Suggest Changes.
The function of the board, as it
is contemplated by Mr.. Mellon, is
to study the operation of the pres
ent revenue law with a view to
suggesting advantageous amend
ments. The suggestions of the
board will be placed before Score.
tary Mellon and, in all likelihood,
before the president for whate'er
guidance he may desire in dealing
with tax legislation in his message
to congress.
But whether the president sug-
gests that the income tax rate be
lowered, the new congress is plan
ming to make taxes one of its main
themes of debate-and actiOn-With
lowered rates regarded as more of
a probability than a possibility. Con
gress probably will lower the rates
or increase the exemption in the
individual returns.
Most of the talk now, in tax cir
cles. is that the exemption will be
raised above the 1000 and $4,000
figures which now apply. In the
case of married men with small in
comes an exemption of $4,000 S
granted under the present law.
There Is talk now Of raising the ex-
emption to $4,000 for single men
and women, and $4,000 uniformly
for married men.
Would Aid Little Garner.
Should this be done, income taxa
ton would be lowered almost to the
vanishing point, for about 100000
persons. The reduction would be
felt all along the line in the higher
grades as well. Thus a married
man paying taxes on net income
up to $4,000 at the present time
would pay $40 less with an addi-
tional $1,000 exemption; and the
married man paying taxes on more
than $1,000 net income would pay
$50 less annually.
0F hi nc
other proposals, depends largely
upon the report Of the specialists
who will determine, with the aid of
the government actuary, what eff
feet the raising of the exemption
would have upon the treasury. If
the $1,000 increase in exemption
will cost the treasury every year
more than $2O0,O00,O00 the windfall
expected by Secretary Mellon, an
other method probably will be
adopted.
The White House has made it
plain to callers that it prefers a
general tax reduction, if there is
to be any tax reduction at all.
which would apply all along the
line to a reduction only in surtax
rate, as proposed two years ago and
recently readyanced by Secretary
Mellon.
Mellon Plan Discarded
1t seems certain that Mr. Mel
Ions plan will not be adopted
either by the administration or con
gress WITHOUT considerable modifi-
cation. OF decided concern to bust
ness interests is the proposal, gain.
ing converts almost daily, of the
so-called Progressive bloc, to re.
store the excess profits tax on cor
porations. Among the dozens Of
proposed amendments to the income
tax law which are certain to come
before congress, none seem to havu
quite such rosy DrOsnects as the
restoration of the profits tax.
Officials at the treasury look for
this tax to come back on the books
after considerable debate on capitol
hill at the next session, and they
couple with it the prediction thar
there will be a substantial lowering
of the tax burden now borne by tn :
small taxpayer, the struggling mer-
chant, the professional man and the
man or woman on wages or salary.
There are more than 100000 per
sons paying taxes on net income of
less than $4,000 a year. Their pay
ments probably do not aggregate
more than $200,000,000 a year if, in
deed, they amount to so much.
The first tax reduction advocated
this year before the national cleo
lions, is expected to be a reduction
that will apply to these 100000
taxpayers.