Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-03-07
TREASURY WANTS
QUICK TAX ACTION
Delay in Reducing Levies
on 1923 Incomes Would
Prove Costly.
BY DAVID LAWRENCE.

Both houses of Congress are being
urged to take instant action with
reference to the 25 per cent reduction
on the incomes of the calendar year
1928, payable on the 18th of this
month.
Separation Of the proposal relating
to 1923 incomes from the bill con
tatning the general tax revision effec-
inevitable. Both the republicans and
democrats are agreed that the pres
ent law can more readily be amended
by the passage of a joint resolution.
which refers only to 1923 incomes, so
that consideration of the whole tax
question may not be complicated with
the problems 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 25 per cent reduction all
along the line. but with the Garner
rates. This would mean in the case
OF smaller incomes a greater reduc-
| tIoh IMAM 20 per cent, and so far as
the higher incomes are concerned not
! as much as % per cent.
Treasury Backs 25 Per Cent.
Under the circumstances the actual
| work of checking up the returns for
1923 will be subject to a good deal of
| confusion. The Treasury insists that
if any legislation apropos of 1928 in
comes is passed, it should be a sim
| pie 20 per cent reduction, so that
J When auditing the returns the same
/ administrative machinery now en-
! gagged in examining the returns can
easily calculated.
The republicans have the votes to
pass % per cent reduction IL the
| Joint resolution is pressed for action.
ana there seems to be a desire to
| give the resolution right of way SO
! as to relieve the. uncertainty of the
taxpayers this month. Also the
Treasury depends for its financing.
! operations and its borrowings on
| the steady flow Of funds from all
tax is being delayed because of a be-
| lief that Congress may put into law
| before March Is the reduction on 1928
incomes. If Congress is going to act.
therefore, the Treasury would like to
see quick action one way or the
other.
Delay Would Be Costly.
| 1t would be a simple matter for
: both houses to give right of way to
! the joint resolution providing a %
per cert cut on 1923 incomes. The
President and Secretary of the Treas
ury have approved it and the two
parties are agreed upon the principles
involved. For time it looked as If
| the republicans would keep the pro-
/ vision for a 1923 reduction in the
general tax bill. in the hope of &C
celebrating its progress through the
Senate, but it looks now as If the
main tax measure will not be through
! Congress before June so, when the
/ next fiscal year begins, and 1t would
! be embarrassing to the Treasury to
! leave the question of 1928 incomes
| unsettled, with the prospect of being
| required to rebate funds already re-
i ceived. About IS per cent of the tax
payers send their money to the Treas
ury 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 re-
/ bates would be an added expense to the
| Treasury, all Of which can be avoided by
4, prompt action before March Is.
, The theory back of the % per cent
| reduction of incomes is that a surplus
lated during 1928 the taxpayer should
| be given the benefit of it. Just what eff
| feet the soldier bonus may have on the
situation is not vet apparent, for if the
champions of the adjusted compensation
act wish they can hold up the reduction
on 1928 incomes with the plea that the
money could better be applied to the
first payments on the bonus On the
other hand. there are those who believe
that the % per cent reduction sets a
precedent for 1924 incomes, and that
if the main tax bill doesn't go beyond
- per cent there will be money enough
to pass bonus bill as well as a new
F.. tax measure.