Evening star., 1924-02-23
Cites Estimated Surpluses.

The estimated surplus, SAID the
Secretary. "a.s appears in the budget
message Of the President to Congress
for the fiscal year 1924. is s329.639624
and for the fiscal year 1925, s3e5,6S1.-
cat. The estimated cost of the bonus
bill in the form vetoed by Pres esident
Harding is shown in my letter of De-
cernbcr Is, 1923. to Representative
Andrew. copy of which is inclosed."
In the Andrews letter the Secretary
pointed out what the cost of the
honus would be under each of the
three options. which estimated the
be s5,0S5, ,s33 ,6S7, with an average for
the first four years of more than
$3.50. 900 year
From these figures" said Secre-
tary Mellon in hts letter 10 Repre-
sentative La Guardia, ''it is obvious
that the bonus cannot be paid within
the estimated surplus, if any of the
three plans is adopted, nor would the
estimated surplus justify the pay
Inent of such a bonus if any of the
three plans were changed in the re-
Spect of making the normal tax rate
per cent and per cent, and the sur
tax rate graduated up to 40 per cent
which are the figures specifically
mentioned by YOU.
Lists Probable Losses.
You ask me what rate would have
70 be adopted in order to pay this
bonus. You have the estimated
figures before you. 1t is obvious that
il all tax reductions be foregone a
certain amount of revenue would be
available to the government for such
purpose as might be determined. If
any plan of tax reductions be adopted
ter be imposed the effect on the
government revenue could only be
determined when the specific nature
of the proposed taxes was given.
regret that unless you can present
some comprehensive plan by which
you propose to raise the neces-
Sary money, or in what particular you
propose the taxes shall not be re-
,luced. 1 am unable to give you spe-
cific figures"
In showing the loss of revenue to
the government, Mr.. Mellon compared
the three pans, revealing that eStl-
mates showed loss of personal income
under the Mellon plan would be $222,-
500 600; under the Garner plan S51l,-
9T7,OOO and under the ways and means
committee recommendation $233, ,400.-
900. The loss of revenue to the gov
ernment from special taxes. 1t was
plan $f00,000,000, under the Garner
plan S10S, 900 and under the ways
and means committee recommendation
$1os,04O,00O.
Kahn Backs Mellon Plan.
Representative Mills, republican,
New York, made public a letter today
indorsing the Mellon plan, and revising
4 statement he made in 1920, which was
quoted in the report on the revenue bill
11A Nv dow rs a
ways and means committee.
MIR. Kahn was quoted as saying
that the maximum man ought
20 pay in surtaxeS ought to be one
that means that the highest brack-
cts would be higher than 80 to 80
per cent"
Mr.. Kahn said he was correctly
quoted. but there is no inoonsist-
ency in my having expressed these
views more than three years ago
under the then prevailing circum-
stances and in my now supporting
the Mellon plan as I doE' He said
that under present conditions surtax
proposed by Mr.. Mellon, would be
regarded as being dictated manifestly
by considerations of politics or by
y disposition to penaIize success"
Changes Delay Bill.
Further changes in the revenue bill
sought by democrats and supported
by some republican leaders again
slowed up it's progress in the House
today, with spirited debate that has
marked its consideration continuing.
AS a result of delays encountered
yesterday, little hope was held by
Chairman Green of the ways and
means committee, in charge of the
measure for the republicans. that it
could be brought up for final vote
tuesday, as had been planned. It
was decided, however, to hold the
measure before the House without
interruption If a vote appears pos
sible a little later in the week.
Considerable time was spent yeSter-
day on an amendment, which was ap-
proved by vote of democrats and
republican insurgents, to open tax
returns to special congressional COM
mittees and the House ways and
means and Senate finance committees.
Another amendment adopted would
make the corporation tax returns
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