Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-11-24
NO CUT IN INCOME
TAXES THIS YEAR,
LAWRENCE POINTS
BY DAVID LAWRENCE
(Leased Wire Service to The Journal. }
DOWNRIGHT 1921


WASHINGTON, Nov. 21.-Judging
by some of the letters received from
various parts Of the country, some
people have the mistaken impression
that the revision of taxes which
Secretary Mellon proposed would
take effect with payments made
next March. The fact is congress
rarely gets to work in the few weeks
of December and the taxes paid next
March will be on the basis of the
present law for all incomes received
up to and including December 81 OF
this year.
Should congress revise the present
law it probably would take several
weeks of consideration, and it might
be April or May before the bill gets
through both houses Of congress
and is before the president for. sig
nature. Mr.. Mellon, however, has
suggested that the new law should
take effect on the incomes received
by taxpayers beginning next Janu.
airy and continuing during 1924,
which means that the taxpayer viii
get the benefit Of the new law when
he pays his taxes in March, 1925.
This has precipitated some discus
sion as to whether there will be any
political advantage for the party IN
power Then it goes before the peo-
pie next autumn. The taxpayers
will not have felt any reduction
when they vote a year from this
month for president and for mem
bers of congress. They will have
before them, if the Mellon plan goes
through, simply the prospect OF
lower rates in the following March
Amount of Cut Uncertain
There are many people, on the
other hand, who set aside every
week or month the amount of their
income that they must ultimately
pay the government. These folks
would be able to set aside smaller
sums for income tax beginning next
January if they knew then what the
reduction would be. While the law
will be written so as to take effect
on incomes received beginning next
January, it will be several months
after that before the taxpayers viii!
know what amounts they really
must pay in taxes.
Even business houses That calcu-
late ahead of time on the money
that can be put into expansion or
promotion will not know definitely
how much of the tax burden they
have been relieved of until the
no q Of
year. Congress will remain in con-
tinuous session when 1t meets IN
December, as this is what is known
as the long session." so there is no
limitation of March 4 to hasten con-
sideration of anything.
Should the bill be passed in the
spring or summer, however, the buSl
ness world will be able to figure on
the amount of their 1924 income or
profits nat must be paid ultimately
to the government and the eXpecta'
ton is that if taxes have been re-
duced for the year 1924 there will be
squirt in business because of the
release of capital for productive en-
terprise which at present is ham,
pered by prohibiting tax rates.
Congress could not very well pass
a law which would affect the pay
ments made by the taxpayers next
March, even if both houses got
down to work in December and made
an extraordinary record for speed.
The governments financial affairs
are managed on a fiscal year basis
that is from June 80 of one year to
June 80 of the next. Taxpayers, on
the other hand, are obliged to pay
their taxes with the calendar year
from January 1 to January l. Al
ready the money that has to be spent
by the government from January
to June 80 next has been appropriate
ed by congress out 90 receipts ex'
pected to be received next March
and June from the taxpayers who
are paving their bills IN incomes re-
ceived during 1928.
Money Already Spent
So it is that at present the estl-
mates are being prepared for con-
2ress for the expenses of the gov
eminent running from June 50 next
to June 80, 1925, and congress Will
60 ahead with it's appropriations so
a to have them ready fore June
80. next. when the new fiscal year
begins. Congress must act on the
theory that a certain amount of rev
enue will be available and already
the Mellon plan contemplates GER
tain budget for government expendl-
ture after June 80 based on the new
plan of taxation.
That's why what the taxpayers
pay next March and in quarterly
installments next year can not be
revised even if congress wished to
do so, unless, of course, congress
wanted to run a deficit. The money
which is due from the taxpayers
next March and thereafter during
1924 has already been authorized for
expenditure in various ways and
...,,o1, e Il hos also heen Snent.