Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-12-02
POSSIBILITY Of TAX
REVISION PUZZLES
CONGRESS MEMBERS
Depends on Unknown Fac
tors of Business and
Economy
By DAVID LAWRENCE

Especial Leased Wire 10 The Journal-Copy-
right, 1874
WASHINGTON, Dec. Return.
ing members of congress are show
ing a significant curiosity about the
chances of another revision of taxes.
And they will lind that the an
swer to their queries cannot be given
them by the president or the secre-
tary of the treasury. For tax revi-
sion depends on two unknown fac
tors. One is the business condition
Of the country - a better economic
situation meaning increased reve-
nues-and the other is the spending
proclivity of congress itself
The treasury estimated last time
that there would be d surplus of
about $SSO,OO0,OOO, but it actually
came to $505, 900, O0O,. which goes to
show that the forecasts cannot be
exact and hat a favorable business
situation nd rigid economy can
change u prediction materially.
Assuming that on the basis of the
figures already published there is an
indicated surplus Of about SIC, 000,-
900, this would not be enough to war.
rant a recommendation for a reVi
sion of taxes. But the experience Of
the past h. taught that treasury es-
Inmates can be exceeded. For this
reason some people have gone so far
az to say there will be a $3.50, 1000, 900
surplus, Notwithstanding the cut
that has been made by the new tax
law in the expected receipts.
Can Bring Surplus
Congress to some extent has it in
it's power to bring about a surplus of
$3.50 100000. Economy in expendi-
ture will do t! e trick. If a business
man wanted to bring about a surplus
at the md of a year he not only
would cut down his expenses OF OPP
GRAFTON, but he would look to in
creased revenues by better business
methods. The gov 'rnment and con-
gress can't improve economic condi-
lions except by uniting to disturb
business and avoiding the imposition
of uncertainties in one form or an
other But congress can do the 9th
err. 1t can fail to spend large sums.
and it can even inquire closely into
by the executive department. Pre-
sumably the budget director has done
all the pruning possible, but congress
has been known to slash appropria-
tions which em2nate from the adj
ministration since the budget came
into being.
The relationship between another
horizontal cut in taxes, say 25 per
H.
and economy in government expen-
diture never has been so easy to de
termine nor so manifest to the
naked eye of the taxpayer as it is
today. Economy has always been
something academic because the in
come tax law has not \been we'll I'M.
derstood and the war upset al
standards of expenditure. In the
last few years, however, economy
has become one of the paramount is.
sues, and the election of President
Coolidge is attributed by many of
economies IN government operation.
Sentiment FavOrs Cut
Sentiment among those members
of the house and senate who are
here for next weeks session is plain.
ly in favor Of another tax cut. Tho
argument that the executive branch
of the government has been making
namely that until after the pay.
ments made on March Is, next, tb :
exact revenue producing capacity of
the present law will not be known,
is recognized as sound, but it usual
" leads to a discussion of what the
administration will do if there is a
surplus.