Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-26
TAX CUT THIS YEAR
|SSEEN AS CERTAIN.
Congress Due to Afford Relief
for Quarterly Payments
in 1924.
BY DAVID LAWRENCE.

Tax legislation, SO far as 1t affects
incomes received during tho year
1924, Is likely to BIO postponed until
next autumn. The joint resolution
providing for a reduction In 1923 in
comes, payable this year, will be pass
ed much sooner.
Almost overnight the outlook for
the passage of a comprehensive rev.
enue bill has changed. The coalition
between the democrats and the insur-
gent republicans has resulted in the
framing of bill which. from the
viewpoint Of the Treasury, will ere
ate a deficit, and, therefore, must be
vetoed. Unless the Senate rewrites
the measure-and that is not likely
to happen until after montns of de-
bate-the chances are tax revision
will be the paramount issue before
the people in the coming campaign.
Everything from now on viii be done
with view to political advantage in
the battle at polls.
Source OF Mutual discrimination.
Instead OF going to the country
with a bill for which both democrats
and republicans could claim credit the
two parties will blame one another
and ask for support so that new tax
bill can be passed.
The delay in enactinG n new reve-
nue law, of course. interferes con-
siderably with the plans of business
concerns and individuals who are
making their expenditures and invest .
nlents during the year 1924, but mas
much as tax payments on this year $
income are not due until March, 1925,
Congress Is i'll no particular hurry
about rushing a revenue bill through.
ever. will not be in a happy frame
of mind II they cannot get some. re-
ductton when they pay taxes on their
1928 incomes. and SO both parties
have promised a reduction.
The first payment of 1929 taxes is
Que next month, and taxpayers are
being advised to pay their taxes for
the year in quarterly installments.
SO that when Congress does pass
a joint resolution or amendment to
the present revenue act giving a
cne-fourth reduction on 1923 taxes.
tho taxpayer will be permitted to
omit one OF the quarterly Install
ments.
If the joint resolution is passed be-
fore June 10 taxpayers may choose to
omit the particular payment due on
that date, though regulations govern
ing the rebate Of taxes would nee
essarily have to be drawn up so as
not to affect the regular and expect
ed flow of funds into the Treasury.
The nub OF the situation Is that
the reduction on 1928 incomes is GO
Ing to be effective sometime during
the present year. but that Congress
will not finish consideration of the
main revenue act until the Novem-
Of
Presidential Veto Seen.
There Is always the possibility that
Congress will, at the last minute,
pass the revenue act, but the outlook
ing a law because Of the certainty
of g. presidential veto. The number
of things inserted in the pending bill
Objectionable to the administration
is increasing, and whereas a week
ago some doubt existed whether the
Chief Executive would dare veto the
measure. the word from administra-
ton quarters is that he Will not hesi-
tate to do so. as the democrats and
insurgent republicans have emascu-
lated the original measure and made
viewpoint.
The broad ground that the pending
bill will not produce enough revenue
to run the government is considered
sufficient by the administration to at
tack any bill. and though the opposi-
ton may present figures tending to
disprove that claim, the administra-
ton feels 1t will be supported by a
preponderant opinion because of the
controversy and doubt that will have
been developed.
Only a measure on which there is
no doubt, and which is certain to
the sanction Of the administration.
There are, OF course, not enough
votes in either houses to pass the
peding bill over the veto Of the Pres
before aff1xfng his signature to the
measures put up to him.