Perth Amboy evening news., 1924-05-22
MELLON LIKELY
To FAVOR TAX
MEASURE VETO
The Revenue Measure Is Put
Through Process of For
NAL Drafting Today
AGREEMENT is REACHED
Will Be Then Sent to Presi-
dent Coolidge for Final
Action

WASHINGTON, May 22.-Stsong
indications were given at the treas
ury today that Secretary Mellon will
| recommend a veto of the tax bin by
the President when the measure is
submitted to the treasury for consid-
Grafton and review.
High officials declared the bill TO
be very unsatisfactory to Mr.. Mel
lon and the statement was made
that he viewed it as most unfor-
tunate piece of legislation" He be-
lieves all of the provisions for re-
form of the tax system have been
omitted and finds no justification
for inclusion of such provisions as
increased estate tax rates.
The secretary also feels that the
sections making income tax returns
available to certain committees OF
congress and opening to the public
the proceedings of the Board of Ia,
Review will have harmful effect or
Business working to injure credit anC
| C;vulge trade secrets to competitors
| The estate tax rates as now carried
by the bill are expected by treasury
! experts to result in lowered produc-
tion of revenue instead of an in
crease. They base this belief on in.
dications that large fortunes will
be distributed by their owners in
advance of death and the govern
ment therefore will obtain little if
any tax on that part of the estate re .
naming intact.
Because of the deficit that the
treasury foresees under the meas
ure, the secretary takes the position
that the reduced income would re-
quire an entirely new fiscal pro-
gram for the treasury. New fund
ing arrangements for the present
outstanding debt would be required
in his opinion. as well as increased
issues of securities to take care of
current requirements when receipts
begin 20 come in under provisi ms
of the bill.
Enactment of a law that would
result in a treasury deficit even for
one year is held by Mr.. Mellon to
be a reversal of a well established
national policy, certain to produce
i'll effects on future fiscal programs
WASHINGTON. May 22-The tax
reduction bill, facing a welcome from
almost every quarter. was ready to-
day for it's final legislative action.
The report on adjustment of differ
ences between the senate and House.
unanimously adopted yesterday by
the conferees representing the two
chambers, went through the pro-
cess of formal drafting today and
Chairman Smoot of the finance COM
mittee, expected to present it to the
senate without delay. 1t was not
considered likely. however, that the
report would be taken up before to-
morrow.
Early action in the senate is ex-
pected to make agreement by the
House possible Saturday. after which
the bill will be sent to the President.
Although cutting taxes s472,620,-
600, or 100000, 900 below the esti-
mated surplus available for tax re-
duction, Republican leaders expect
! President Coolidge to look with fav-
or on the bill in its present form in
| view of the elimination of senate
amendments providing for full pub
! licity of tax returns and levies on
undisturbed corporation profits.
The income schedule proposed by
! Senator simmons, North Carolina,
ranking Democrat on the senate
/ finance committee. remains in the
bill, but Republicans point out il
varies little from the compromise
offered by Representative Long
worth, Republican leader in the
! House, and approved by that cham
/ ber.
1t calls for a maximum surtax
| rate of forty per cent applicable on
| incomes of 100000 and over and
normal rates of two per cent on in
comes under $4,000: four per cent
on incomes between $4,000 and
! $4,000, and six per cent on income es
above that amount.
The prospective treasury deficit
under operation of the bill does not
take into account the estimated re-
quirement of $3.50, 100000 for the
! bonus next year, nor other pending
bills calling for special appropria-
tions. Senator Smoot has predicted,
| however, that he indicated the def
cit would be wiped out to a great
degree through increase tax returns
due to the stimulus to business
which he believes will result from
the passage. of the bill.