The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-06-03
Coolidge. Signing Present
Congress Tax Bill. Says Ii
Is Not Sound Policy
REDUCTIONS ARE MADE
Is Per Cent Cut in Income
Taxes for 1923 One of
Features of Bill

statute books today but 1t will have
to weather fight by the administra-
tion to obtain Il law more to its lk-
ing by the next session of Congress
to remain there.
President Coolidge issued colnci-
dent with his signature of the tax
reduction bill yesterday that he
would bend all of his energies to OBJ
tain passage at the next session to
obtain bill "less political and more
economic"
The bill, which decreases tax rates
in most instances to the lowest levels
since 1917, and which was the basis
of the hottest Legislative fight at
the present session Of congress was
declared by the president in a 1900
word statement issued coincidcnt
with his approval of the measure,
to represent merely "tax reduction,
not tax reform"
''The bill does not represent IA
sound permanent tax policy and in
it's passage has been subject to un-
fortunate influence which ought not
to control fiscal questions" the
executive said. "SHl in spite of its
obvious defects, its advantages, as a
temporary relief and temporary ad-
justment of business conditions. in
view of the uncertainty of better
law within a reasonable time, lead me
to believe that the best interests of
the country would be subserved if
this bill became law.
, To Seek Improvement
"A correction of its defects may
left to the next session of the con-
gress. | trust a bill less political and
| more truly economic may be passed
at that time. To that end shall bend
all my energies"
The legislation as approved by the
president reduces the taxes of al
most every federal taxpayer and cuts
down the federal revenues by an
amount estimated at 1851 100000 for
the next fiscal year. This reduction,
however, will not result in any de-
| felt, according to treasury experts.
The principal effect of the new law
will not be felt until next year, the
so percent reductions in income taxes
being made applicable to incomes Of
this year but payable in 1925 Imme-
diate relief, however, is granted
every income tax payer as a 20 per-
cent decrease is ordered in the case
of income taxes for the current year
and now due. Persons who are pay
ing this years income taxes on the
installment plan may cut their sec
ond payment, due June Is, by one
half and their other two installments
by one-fourth each. Those who al
ready have paid their income taxes
in full will get refund without APP
plying for it.
Many Excise Taxes Go
Another effect that soon will be
appreciable is the provision of the
new law repeating within 80 days
many excise taxes such as those on
telegraph and telephone messages,
soft drinks, candy, carpets, rugs,
trunks and theater admissions of so
cents or less.
The revision of the income tax
rates effected under the new law
brings cut in all such levies. This
amounts to SO percent reduction on
amounts above that the normal rate
is cut from to 6 percent while the
surtax rates are revised on a similar
basis.
The new surtaX schedule starts
with ! percent on $4,000 and gradu-
ates up to 40 percent on $5O0,OOO and
over.
A new feature written into the
legislation at the recommendation of
Secretary Mellon, who initiated the
move for tax revision last September
provides for an additional reduction
of Is percent on earned incomes up
to $4,000 with all incomes Of $4,000
and under, classed as earned.
Approval was given by the presi-
dent to the measure exactly one week
to the hour from the time he received
it after almost unanimous final ac-
tion by both house and senate. The
president acted after study of a
lengthy report made on the bill by
the treasury department, and after
SeVeTdI conferences WlLN secretary
Mellon, to whose original plan for
tax revision he had given his support
| and Endorsement.
Mellon Gets Ready
The signing of the bill was without
ceremony. c. Bascom Slemp, the
| presidents secretary, was the only
witness.
Immediately upon notification that
the bill had been made law, Secretary
Mellon began preparations in the
treasury for its administration. His
first move wa an announcement that
he would ask congress to waive by
resolution statutes making payment
of salary to persons nominated for
Office while congress is in session
contingent upon senate confirmation
of the nominations. This action will
be urged by Mr.. Mellon to take care
of appointments to the board of ap-
peals, some of which will be made
Continued on page 81