San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-08
Separation Of Plan From
General Revenue Bill
Almost Certain.
HOLD BACK, PAYMENTS
Prompt Action Would Mean
Great Saving to Treas
ury Department.
BY DAVID LAWRENCE.

Copyright by The San Antonio Light.
Washington, ID. c., March 8.-Both
Houses of Congress are being urged
to take instant action with reference
to the % per cent reduction on the
incomes of the calendar year, 1928,
payable on the fifteenth of this month.
Separation of the proposal relating
to 1923 incomes form the bill contain
ing the general tax revision, effective
upon 1924 incomes, now appears in
eyitable. Both the Republicans and
Democrats are agreed that the present
law c"n more readily be amended by
the passage of joint resolution which
refers only to 1923 incomes so that
consideration of the whole tax question
may not be complicated with the prob
lens before the American taxpayers
who are working out their tax returns
this month.
The Democrats would like to see the
joint resolution put into effect not
with % per cent reduction all along
the line, but with the Garner rates.
This would mean in the case of smaller
, incomes a greater reduction than %
per cent and 30 far as the higher in
comes are concerned not as much as
20 per cent.
Under the circumstances, the actual
work of checking up the returns for
1923 will be subject to good deal
of confusion. The treasury insists
that If any legislation apropos of 1923
incomes is passed it should be simple
% per cent reduction so that when
auditing the returns the same adminis-
trative machinery now engaged in eN
aiming the returns can be used and
the one-fourth reduction easily calcu--
lated.
Want Quick Action.
The Republicans have the votes to
pass % per cent reduction II the
joint resolution is pressed for action
and there seems to be deirse to give
the resolution right of way so as to
relieve the uncertainty of the taxpay-
ers this month. Also the treasury
depends for its financing operations
and its borrowings on the steady flow
of funds from all sources. The pay
ment of income tax returns Is being
delayed because of belief that Con-
gress may put into law before March
Is the reduction of 1923 incomes. If
Congress is going to act, therefore, the
treasury would like to see quick action
one way or the other. 1t would be
a simple matter for both houses TO
give right of way to the point resolu-
ton providing 20 per cent cut
on 1923 incomes
The President and secretary OF the
treasury have approved it and the two
parties are agreed upon the principle
involved. For time it looked as if
the Republicans would keep the provis-
ion for a 1923 reduction in the gen
eral tax bill in the hope of accelerat-
ing its progress through the Senate
but it looks now as il the main tax |
measure will now be through Congress
before June Both when the next fiscal |
year begins and it would be embar- !
RAISING to the treasury to leave the |
question of 1923 incomes unsettled |
with the prospect of being required to |
rebate funds already received.
Would Save Expense.
About 70 per cent of the taxpayers |
send their money to the treasury in |
quarterly installments so the treasury |
would have to arrange for rebate |
to at least one-fourth of the number |
of taxpayers. which means more than |
100000 persons. The bookkeeping |
alone involved in making out checks |
and arranging rebates would be an |
added expense to the treasury. All of |
which can be avoided by prompt action
before March 10.
The theory back of the 25 per cent |
reduction of incomes is that n surplus
of 1923 100000 having been accumu-
lated during 1923. the taxpayer should |
be given the benefit of it. Just what |
effect the soldier bonus may have on
the situation it not apparent. far as
it is. the champions of the adjusted |
compensation act wish to hold ND the
reduction on 1924 incomes with the
plea that the money could setter be
applied to the first payments on the
bonus.