The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-03-12
Taxpayer to Get
Little Relief at
Next Session
Leaders Say No Reduction i'll
Income or Surtaxes Likely
by Sixty-Eighth
Congress.

Washington, March 1l.-The long
suffering American taxpayer IS to get
little il any relief from the next con
gress, according to administration
leaders who are preparing to pilot
through what administrative revision
law is in contemplation.
No reductions in either normal taxes
on individual incomes nor on surtaxes
are now in contemplation by the ad-
ministration and such reductions are
not at all likely to be accepted even
il urged by congress from sources out
side the administration.
This is the conclusion of Senator
Smoot, republican. Utah, who is to ne
chairman of the new finance commit
tee. and Representative Green. repub-
lican, Iowa, who win be chairman of
the new ways and means committee.
These are the men who will have
charge of the tax revision bill and
they already are putting the soft
pedal on income tax reduction, 70.
which there has been loud clamor in
every election campaign and in every
session Of congress since the end OF
the war.
Reductions Unlikely.
Senator Smoot and Representative
Green agree that the condition Of the
treasury will not permit any reduc.
ton in the burden upon the small tax
payer in the form OF a cut in the pres
ent normal taxes. They also agree
that the temper OF congress is likely
to be such as to prevent any reduc
ton in surtax rates. which now reac1
a maximum OF 30 per cent.
While Secretary OF the Treasury
Mellon is certain to renew his recon-
mendation for n reduction 10 max.
imum of possibly % or 30 per cent. the
prospective committee chairmen are
now declaring that no action along
this line may be expected.
Senator Smoot and Representative
Green also predict that agitation for
repeal Of the present miscellaneous
taxes. such as the manufacturers tax
on automobiles and iewelry. is not to
succeed in the next session. Senator
| Smoot continues te favor substitution
I Of general sales tax for the present
miscellaneous taxes but admits that
there is little chance Of obtaining ap.
proval OF congress for his proposal.
Representative Green opposes the
sales tax but plans to visit Canada
this summer to study the limited sales
tax in eject in that country.
I Change In Revenue Laws Likely.
Passage OF a bill making administra-
/ tive changes in the revenue law. as
already proposed by Representative
! Green, who desires the treasury to APP
point committee at once to prepare
recommendations is considered desir-
able by both prospective ehairmen
and they belive that little difficulty
will be encountered in obtaining ap-
proval Of such legislation.
In discussing the sales tax situation.
Senator Smoot said that he feels con
fident that eventually congress VIII be
forced 10 approve "A sales tax when IL
becomes apparent that needed revenue
cannot be raised otherwise. Senator
Shoots sales tax proposals We're re-
jected during consideration of the 1921
revenue act and he does not antici-
pate that sentiment for general tax
| OF this nature will be sufficiently
strong In the next congress to bring
about It's adoption.
Expenditures OF the government
cannot be greatly reduced Tor many
years, according TO Senator Smoot. and
new burdens which arc in prospect,
such as a soldiers bonus and increns.
ed expenditures In connection with
compensation for disabled swar vet
erang viii make II necessary. In his
opinion, to find new sources Of raising
money.