Evening star., 1923-08-27
MADDEN FRAMES
PLAN TO REDUCE
TAXES NEXT YEAR
Ready to Parallel Cut in Gov
ernment Cost With Slash
in Revenue.
PREPARES FOR FIGHT
AS OPPOSITION LOOMS
Declines to Detail His Project, But
Declares Present Laws Need
Not Be Upset.

Chairman Madden of the House ap-
propriations committee announced to-
day that he would present to the next
Congress a practical plan" for the
reduction of taxes.
Mr.. Madden had reached the con-
clusion to propose reduction of taxes,
he said. by a comprehensive study Of
the savings effected by the admins
tration. These savings, he believes,
should be reflected in lower taxes.
Just what his plan for the reduc-
tion of taxes is. Mr.. Madden was not
ready to reveal, but it had been COM
pleted, he said, and would be an
nounced upon its presentation to
Congress shortly after it convenes in
December.
Confers With Mellon.
Mr. Madden declared himself in
favor of tax reduction this morning.
following a conference with Secretary
of the Treasury Mellon, which lasted
nearly an hour. Although the de-
tails of the conference were not re-
vealed, 1t was learned that the prin-
cipal subject discussed by the Secre-
tary and the chairman of the House
appropriations committee was gov
ernment Economies" This was un-
derStood to be closely connected with
Mr. Madden's views concerning tax
reduction, and IL was thought by some
| that Mr.. Madden probably revealed
to the Secretary this morning the
salient points in his plan.
Secretary Mellon has repeatedly de-
l,n1p y. -,
of the higher SurtaX brackets. 1t was
again intimated at the Treasury re-
Gently that Mr.. Mellon would renew
his recommendation to Congress when
II reconTenes, and urge reduction in
the higher Surtax brackets as prac-
ticable means of providing more ac-
| tual income to the government.
Ready 10 Fight for Plan.
Sensing that perhaps there would
| be objection TO- the proposal which
he has developed and also giving the
expected. or at least uH6suai. Mr..
MAIDEN HatIla said he would be prepared to
position to reduction of taxes had
come from some circles of thought.
Mr.. Madden said. which held to the
| idea that only through an entire re-
vision of the revenue bill enacted at
| the last session of Congress could
| any material Tightening of tho tax
burden be effected.
But, he added. significantly, there
may be means Of reducing taxation
| without revision of the entire leg
! iSlation on the statute books.
smoot Is Opposed.
Among those who have recently
predicted there would be no reduc-
| tion in taxation during the next
| Congress was Senator Smoot, repub-
| lican, Utah, ranking member. and
the next chairman of the Senate
! finance committee. Mr. Smoot, fol-
lowing conference with. Secretary
Mellon recently, gave 1t as his opinion
that no attempts would be made to
tamper with the revenue act Of 1922,
or to reduce taxes generally.
| The savings which have been
claimed by the administration in the
handling of public business during
| the past year, which Mr.. Madden be-
lieves should be reflected in lower
taxes to the people. may be said
to include the s256.o0O.000 which the
! late President Harding said had been
the actual reduction in the expendi-
lures of departments and establish
ments engaged in the ordinary bust
! ness of the government.
Not only has II been claimed by
| administration leaders that this figure
! represents an actual reduction in the
/ cost of government, but they refer
| to the record of the same year, when
!
| of the year, was changed into a large
! surplus, on June 80, 1922.
| Deficit Becomes Surplus.
The total estimated deficit for the
year 1929, according to Director
Lord of the bureau of the budget
had been $S23.000, 900. This estimated
deficit, according to the final report
of Gen. Lord to the President, was
transmitted into a surplus OF $30s,-
| 657.460.
| For the present year. TO end June 80.
1924, the heads of government estab-
4 lishments have been ordered to further
economize and bring the expenditures
for this year. excluding the $500. 200. 900
| for debt reduction, within $4,000, 600, 900.
At the beginning of this year, there ap-
peared prospective deficit of at least
| S30,000,000 which has been ordered
wiped out. The bureau Of the budget
is watching all corners everywhere to
see that that deficit is wiped out.
| Harding Asked Reduction.
Furthermore, prospects for the year
192425, preliminary estimates for which
are already in the hands OF the bureau
Of the budget, point to the necessity of
another cut below the present year.
| The late President Harding at the
! last business meeting of the govern
ment announced his desire that the
1925 estimates. exclusive OF the
amount required to meet the reduc-
! tion in, and the interest on, the
public debt. and the amount required
for the Post Office Department. should
not be in excess of S1,70o. 900, 900. To
I reach this amount the estimates for
| 1925. Mr.. Harding told the business
heads, must be s126.000,000 less than
| the actual appropriations for 1924.
The economy program Of Mr.. Hard
| ing has been adopted entirely by Presi-
dent Coolidge, 1t was learned. follow
| ing a conference between Gen. Lord
| and the President at the White House.
Thus, with the campaign of economy
and efficiency" still waged throughout