The Washington times., 1924-04-12

Reported to Senate as Short
$5o,ooo,ooo of Meeting U.
S. Expenses for Year.
BY International News Service.

lDIeEnhtIOnAI news service.
Carrying tax cut of $434, 720.-
900 over the present law, the Ad-
ministration's tax reduction bill
adopted by the Finance Committee
will create an estimated deficit Of
$50, 989, 444 over the expected ex-
penditures of the Treasury Depart
ment during the coming year, Sem
ator Smoot (RepD of Utah, chair
man, told the Senate in a formal
report today.
The total tax cut provided by the
bill is $434,720,000, as against the
$446, 100000 slash estimated in the
Longworth compromise measure
passed by the House.
Total Is 81, 1905 ,O64, 900.
Shoots report, approved by the
Republican members of the commit
tee, stated the bill will raise $2,3O5.-
064,00O, or $11, $4,000 more than
eminent under the House measure.
The total income tax contemplated
by the bill is 81 ,616, 900 900, or $26I,-
100000 less than raised by the
present law. OF this amount 1926.
100000 will come from normal in.
come taxes, $95, 900 900 less than
levied by present law; $341 .0OO, 900
from surtaxes, and 1919 900 900 from
80 A
cent.
This latter figure is $104 ,0OO, 900
more than the present years return
because it is figured that the revi-
sion of the tax law will bring
greater tax returns to the Govern
ment.
The earned income provision
represents loss of $50, 200, 900 and
the revision of the so.called capital
provision will effect a loss Of $10,-
100000.
$3,298, O8O.44 to Be Spent.
The report shows that the ex-
penditures of the Government
chargeable against ordinary receipts
as called for by the budget report
on which the appropriation bills
arc based will be for the fiscal year
1925, $3,298, $50, 444, and the estimat-
ed income from ordinary receipts,
$3,247, 091 900.
Discussing the general question
of tax reduction, the report said:
According to the estimate sub
mitted in the annual report of the
Secretary of the Treasury for the
fiscal year 1928, the excess of or
binary receipts over total expendi-
lures chargeable against ordinary
receipts were, for the fiscal year
1928, 5000, 657 ,460.30. For the fiscal
year 1924, the surplus is estimated
to be 1929 639 1924. and for the fiscal
year 1925. 1895. 6S1 ,634.
1924 Cuts Provided.
These figures show that present
taxes are yielding more revenue
than the needs of the Government
demand and make necessary a re-
vision of the internal revenue laws
to lessen the present burden of
taxation.
"The bill provides temporary and
Immediate relief to taxpayers by -
25 per cent reduction of the income
tax payable in the year 1924 on
1928 taxable income. The esti-
mated reductions resulting from this
provision is as follows:
Fiscal year 1924, $12S,O1O 900:
fiscal year 1925, $104,74O 900. Total
reduction, $232, $50 900.
Revenue Items Listed.
Following are the items forming
the" most important miscellaneous
sources from which the Government
income will he derived: Miscellaneous
internal revenue--Estate tax. s11O,.
900 900; telegraph and telephone.
$34,O00,000; admissions and dues.
$52 900, 900; automobiles, ETC., trucks,
$4,000 900; other automobiles, sos.
600 900; accessories PARTS, etc, S21.
600 900: smokers articles, 1899 600
iewelry, ETC., $l2,00O,000 sales OF
produce on exchanges, $4,000 900:
drafts. promissory notes, etc, So.
100000; playing cards. $4,000 900;
Continued on Page 2. Column 81
HS~.A- NJ