Evening star., 1924-11-12
PRESIDENT AGREES
WITH MELLON, TAX
CUT NOT WISE NOW
What Congress May Do An
other Question - Some
Members Want Action.
WHITE HOUSE OPPOSES
CALLING EXTRA SESSION
Those Urging One Recall Presi-
dents Statement Revenue Act
Needed Revision.

The administration has no present
intention of pressing for tax leGisla-
tiOn at the coming short session of
Congress it became known today
after Secretary Mellon had conferred
with President Coolidge.
1t is understood Mr.. Mellon does
not consider it practical to take up
the problem at this session because
of the lack of time and in view of
other difficulties entering into the
situation.
Administration officials feel it would
he rather futile to renew the tax
fight at the short session, since this
problem has just been threshed out,
and the resulting law is just now
going into effect
Extra Session Uncertain.
Neither has the administration given
any consideration, SO far, to the call
ing of a special sr.sion of the new
Congress after next March to con-
sider tax reduction.
What Congress itself may attempt,
without recommendation from the ad-
miniStra tion. is another question.
Some elements in the Senate and
House want immediate action, de-
spite the fact that the Republican
party leaders seem agreed with the
White House as to the inadvisability
of such course. Others are press
ing for a special session after March
4. and it remains to be developed
whether they will muster sufficient
strength to convince the President
that such session should be called.
Recall Coolidge Statement.
Unless Mr. Coolidge issues a special
COL ha
meet until year from the coming
December. Those who are urging a
special session point out that the
President declared after the act of
1924 was perfected that he favored
another revision at the earliest op
portunity, and they argue that
delay until late in 1925 would not carry
out that program.
A horizontal reduction of 25 per
cent on the income taxes as pro-
vided in the revenue law enacted at
the last session of Congress is the only.
possible tax legislation at the short
session of Congress, in the opinion of
Senator Smoot of Utah, chairman of
the Senate finance committee.
Congress Lineup Same.
"It would be idle to attempt a gen.
eral revision of the tax laws at the
coming session of Congress, which ex-
pires March f." Senator Smoot said
just before leaving Washington to at
tend the funeral of Senator Lodge.
The lineup in the Senate and in the
House remains exactly the same as it
was when the present revenue law
was put through.
IF, however, the condition of the
Treasury warrants it, Congress might
ut the coming session, put through
reduction of 20 per cent in the in
come tax rates, effective all along
the line. That may be done. We will
know after December Is the date of
the last income tax payment for this
year, just how we stand.
The % per cent reduction in in
come taxes provided by Congress at
the last session was applicable only
to the incomes received in 1928. The
revenue law enacted at the same ses-
sion, however, made material reduc-
tions which will. be applicabl to
the income received in 1924 The sug-
gestion now advanced by Senator
Smoot might reduce by 25 per cent
the taxes levied under the new law.
If such a horizontal reduction were
made at the short session of Con-
gress, then pressure for special
session after March for tax reduc-
tion. which has been growing in some
quarters, despite the fact that many
Republican leaders are opposed to
calling u special session of Congress,
might be lessened materially.
Undoubtedly efforts would be made
Senator Smoot said, to amend the
publicity provisions of the income
tax law at the coming session. But
while he favors repeal of the pub
licity provisions of the income tax
provisions, Senator Smoot does not ex-
pect them to be repealed at the COM
ing session, if at all.
. Congress will be called upon, Sena-
tor Smoot said, to extend the life of
the Foreign Debt Funding Commission
at the coming session. This commits
sion, negotiated the funding of the
British debt to the United States, and
has made agreements with several
other nations which are still to be
ratified.