Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-06-05


federal tax law IL on the statute
books today but 1t will have to
weather a determined fight by the
administration to obtain a law more
to it's liking at the next session of
congress.
in a statement issued coincident
with his signature Of the tax reduc-
ton bill yesterday that he would
bend all of his energies to obtain
passage at the next session of a bill
less political and more economic"
Despite its "obvious defects" the
president said in his statement that
he had signed the bill as serving the
best interests of the country be-
cause OF cts advantages as a tenn
porary relief and a temporary adj
justment of business conditions"
adding that a correction of it's de-
fects may be left to the next ses-
sion of congress"
The bill, which the president de-
clares represents merely tax re-
duction, not tax REFORM" cuts fed
eral revenues by an amount estimat-
&C at 1851, 100000 for the next fiscal
year and decreases tax rates gener-
ally to the lowest level since 1917.
Almost every federal taxpayer
shares in the tax relief afforded.
Reduction This Year
Although the taxpayers pocket
book will not feel the actual benefit
Of the reductions in income taxes
applicable to incomes Of this year
until he pays them in 1925, he is
granted the immediate relief Of rs
per cent decrease in income taxes
for the current year now due. The
repeal Of many excise taxes, such
as those on telegraph and telephone
messages, soft drinks, candy and
theater admissions Of fifty cents or
less, also will be felt within 80
days.
Preparations for administration
on the act went forward today in
the treasury and a formal estimate
of $20,000,0O0 for refunding the
25 per cent retroactive reduction to
those who paid their 1923 income
taxes in full March Is was before
Director Lord, Of the budget. These
refunds, for which congress must
make the necessary appropriation,
are to be paid as quickly as possible
without application from taxpayers
to whom they are due.
Presidents Objections
The presidents criticisms were d.
rected chiefly at the measures fail
ure to make greater reductions in
surtaxes or forbid further issuance
Of tax exempt securities, at the in
crease to a maximum Of 40 per cent
in the estate tax, the publicity fea-
lures, and the action Of congress
in reducing the salaries recommends
ed for members of the board of tax
appeals and affecting their terms of
office. He also intimated he might
call 81 conference prior to the next
session Of congress to work out a
scheme for division Of taxes between
the federal and the state govern
ments.
Secretary Mellon announced that
organization of the board of tax ap-
peals would be started Immediately,
but since nominations probably
could not be made in time for con-
firmation under pending laws for ad-
Jourment Of congress, he would ask
for resolution removing restric-
tions, making the payment of mem
bers given recess appointments con-
tlngent upon senate approval at it's
next session.
TREASURY ISSUES DETAILED
EXPLANATION FOR TAXPAYERS
WASHINGTON, June 3.-Oficial
directions were issued today by the
treasury department covering the
process the taxpayer should so
through in determining how he
should pay his taxes under the new
revenue.
IF at the time you filed your fed
eral income tax return you paid
three-fourths Of the amount of the
tax reports, no further payments
will be due" the treasury said.
If at the time you filed your re-
turn, you paid one-haIf of the
amount Of tax reported, no payment
will be due until September Is.
If at the time you filed your re-
turn, you paid only one-fourth of
the amount of tax reported, you
must pay on or before June Is, one
naH of the amount paid by you
when you filed your return.
The main point to be borne in
mind is that one-half Of the tax due
from you this year must have been
paid on or before June IS.
The usual notices have been IS |
sued by internal revenue collectors
reminding income taxpayers that
the second installment Of tax is due
June 10. OF special interest to tax |
payers is the provision carried in the
new revenue law to the effect that
the tax on incomes receiVed hy, indi
vlduals in the calendar wear of 1923
Will be reduced by % per cent. This
means that every individual who is
SUBJECT to income tax will be re.
lieved of One-fourth Of the tax liza
biIty which he reported on the re-
turn filed on or prior to March IS, |
or, If the tax was paid in full, that
ne Will receive a refund Of one
fourth of his payments.
can't Miss Whole Payment
Taxpayers who paid only one
fourth Of their tax in March, how.
ever, should not make the mistake
of thinking they may take credit for
the full twenty-five per cent reduc-
ton at once and not pay anything
when the second instalIment comes
due. The new law provides that
the % per cent reduction shall be
prorated over all four instaIlments.
or instance, if an individual report
ed tax of 800 on his return. he
can consider that the new law has
reduced his tax to SIS. II he paid
$50, or one-fourth of the amount re.
ported when he filed his return. then
he must pay $3.50 on or before
June Is. This amO1lpt +ooe+,er