Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-24
SEN. HARRINGTON
GIVES HIS DEFINITION
Of 1907 AMERICAN
TAX REDUCTION
WILL Be SETTLED
IN SENATE today

washington, May 23-Congress
continued firm today In it's support of
the pending tax measure on the eve
Of final action on the bill.
The senate will make up the confer
ence report tomorrow with prospects
Of favorable action before adjourn
ment, in which event the house is
prepared to take it up Monday. Re-
publican leaders in congress freely
predicted today that the measure
would be signed by the president. At
the same time, President Coolidge let
it be known that the general question
Of whether the bill is an improvement
or existing law will form the basis of
his action. Specific considerations to
be weighed by the president in deter
mining his action are whether the new
measure will provide sufficient reve-
nue., wether 1t will provide an efficient
system Of administration and whether
what he views as its undesirable fea-
lures are outweighed by its good
points.
Chairman Smoot Of the senate fl
nance committee declared after con-
versation today with Secretary Mellon
that there was no possibility OF
would modify the publicity provisions
or the estate tax rates Increase.
Mr.. Mellon made known his OBJ
jections to these provisions but men,
bers Of congress minimized predic-
lions that the treasury head would
recommend veto Of the bill, especial
ly until after he had no opportunity
to study the measure as finally pass
ed by congress.
Mr.. Mellon opposed the amendment
directly the collector of internal reve-
nue. to make public the amount paid
bv each taxpayer. as well as the name
and address as Required by existing
law. Administration spokesman IN
Congress explained. however, that this
proyision was more satisfactory to
their minds as a compromise than the
senate provision which would have
permitted public inspection OF each
tax return.
Chairman Smoot today formally SUBJ
mitted the report of the conferees on
adjustment of differences between the
Senate and House and announced ne
would call 1t up tomorrow. Some de-
bate Is anticipated but no real OPPOSE
ton to the bill was expected tonight
by leaders OF either party, Similarly
an early agreement was forecast in the
House on Monday. This would allow
dispatch of the measure to the presi-
dent BY TUESDAY or Wednesday.
President Coolidge. was asked 10
veto the pending measure I'm public
statement tonight by Charles Deb. Clat-
borne, president of the American Bank
ers' League, on the ground that it had
failed to reduce sufficiently the surtax
rates.
The measure carried the Democratic
income tax schedule proposed by Sem
ator Simmons, North Carolina, provid-
ing for a maximum surtax rate of 40
per cent. This was accepted in favor
of the Longworth compromise support
ed by House Republicans in it's adop-
ton by that body and providing for a
maximum surtax of 37a per cent. Sec
rotary Mellon proposed 25 per cent.
maximum surtax rate. Replying to
predictions by treasury officials and
some Republican leaders that the pro-
posed bill would bring about a treas
ury deficit, Senator Simmons issued a
statement tonight quoting recently
compiled treasury estimates to show
that in its first year of operation the
bill would result in surplus Of $780,
100000.
Il Under the present law. he said. the
treasury estimates showed that a sur
plus of $499,900, 600 would result next
year. This surplus would have been
cut to $3.50, 900,0 900 if the Mellon income
tax plan~had been adopted. Senator
Simmons said.