Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-11-15
ACTION ON TAX CUT
1T SHORT SESSION
LEFT To CONGRESS
~ DAVID LAWRENCE

~ A'.AS III LA hIJANCE
Especial Leased Wire to The JournaI-Copy-
right, 1924
WASHINGTON, Nov. 13.-The adj
ministration has decided to leave
congress to decide whether a hort
zontal cut of % per cent income
taxes shall be put through at the
short session beginning in December
and ending IN March.
There are several reasons given
for declining to recommend u tax
cut, but at the same time no state
ment is being made that the presi-
don't would veto a joint resolution
to provide for reduction in taxes.
Senator Smoot, chairman of the
senate finance committee, is in favor
of such a resolution. In the house
no doubt will appear a similar senti-
ment. The treasury department
knows that in its last experience
with congress, the Democrats and
insurgent Republicans united to ig-
more the essentials of the Mellon
plan. A recommendation from the
treasury starts with a certain hos
tility. The treasury is having it's
battles with the Couzens commit
tee about the efficiency Of the inter-
nal revenue bureau and altogether
the administration is disposed to
wait for action by the congress elect
ed last week, which will either con-
vene in December, 1925, or earlier
if other problems not now foreseen
require a special session.
Treasury officials are saying that
they don t know how the present law
will operate and that first receipts
will not come in until next March,
but the actuaries of the treasury, on
the other hand, have been very ac-
curate in their estimates in the past
and there is no doubt that the adj
ministration would not veto any pro-
posal to make % per cent cut once
it passed both houses.
Question is Paramount
Politically, the tax question has
become almost paramount and there
Will be plenty of opportunity for in
dividualS in congress to place them
selves in a position of being even
more anxious for tax revision than
the administration. Action at the
session beginning in December, 1925,
would mean that the taxpayers
would get the benefit of the reduc-
ton when they paid their taxes dur
ing the year 1926, which is another
election year. Some adm inistration
leaders think it is wiser to revise
the tax law for that occasion, so as
to help keep the Republican con-
SreSs in power than it is to make
ii cut in the coming winter session.
From some aspects congress is
likely to endeaVOr to cut taxes not
only next winter, but in the session
of December, 1925. The first, of
course, would be a horizontal cut
and is not difficult to manage, legis-
latively speaking, especially since
the detailed revision must be post
poned until the present law is longer
in operation. 1t seems logical to
expect the Democrats and insurgent
Republicans to take the initiative if
the regular Republicans do not. It
will be remembered that the treasury
did not initiate the last 25 per cent
cut, but that it grew out of a pro-
posal in the ways and means commit
tee by Chapman Green, but it was
promptly given the approval of Sec
rotary Mellon and the president.
Better Business to Help
SO far as the productivity of the
present law is concerned, the treasu-
~ is conservative in it's estimates,
but this much is known-the admin
istrative provisions OF the new law
will bring in more taxes than was
originally expected. Better business
conditions this year will be another
factor.
The director Of the budget Just
Low is working on his figures for
publication just before congress con.
Venes. 1t is possible for the admin
istration to allow the estimated ex-
penditure to come close to the esti-
mated revenues and wipe out the
much talked about surplus. All data
heretofore has indicated that a sur
plus was inevitable. The president
is attempting to cut the budget
down. When the figures are dis
closed congress as we'll as the coun-
try will discover just what surplus
may be expected. Then it will be
up to congress to say whether it
shall be spent or refunded to the
taxpayers on their income taxes pay
111n 11a%t MoTnlo