Evening star., 1924-01-19

~ Sui Ia Aes-tndt tne present surtaX
Is reducing government revenue and
Is diverting money from necessary in
dustrlal purpoSeS-have evidently
been abandoned.
Il am delighted" the senator's let
ter said, that l have convinced Won
of the fallacy of these two funda-
mental reasons for your recommends
tions."
Power In Treasury.
Differences over Mr.. Melons rec
ommendation for a board of tax ap-
peals were aired at the ways and
means committee hearing today after
Edwin T.. Gore, representing the
American Institute OF Accountants, had
declared the provision still leaves
the taxpayer at the mercy of the
Treasury
Representative Garner, democrat.
Texas, supported Mr.. Gore, declaring
the proposed board would be under
direct control Of the Treasury Secre-
.arS through his power OF appoint
And the taxpayer" Mr.. Gore said.
should not have to go to the Treas
ury to appeal from Treasury decisions"
MIR. Gore suggested that the board
Chairman Green said that would
force its con@ig-lation by the Senate
thus turning the whole thing into
a political scramble"
In arguing that the board be COM
pletely separated from the Treasury
as the witness declare that first de-
!cISfons on tax accounts were made
by department employees trained and
stepped in the spirit to get all taxes
possible. Representative Garner
then charged that grades of Treasury
employees depended on how much they
collected in taxes
The Mellon recommendation to pro-
hibit the filing of separate income
returns by husbands and wives on
community property taxes. as allowed
in several states, was attacked by
Representatives Miller and Summers,
republicans, Washington. They said
the provision would nullify their
state law and was unconstitutional.
Minnesota. introduced four revenue
bills today.
He proposed removal of the tax on
corporation income and of all nuisance
taxes, and the institution of a tax of
per cent on land holdings over
$4,000 in value. He also proposed
reduction of SO per cent In earned
income rates as distinct from un-
earned income, and an increase in in
heritance taxes on big estates.
The committee worked under pres
sure today to wind up It's hearing on
tax reduction proposals SO it can
start work Monday on its study of
rate revisions to be incorporated in
It's ne" DILL
Basis for Discussion.
The hearing began Monday. after
,the committee had made a prelimi-
nary study of the administrative fea-
!tures in the program submitted by
Secretary Mellon. whose rate reduc-
Ition suggestions will form the basis
of the remainder of it's discussions.
Numerous appeals for reductions
lin the tax rates affecting various
Interests have been heard during the
week. and the committee also has
called Treasury experts for technical
Information. 1t planned to finish the
taking of testimony today, with wit
nesses favoring and opposing num-
iber of suggested changes in the pres
,ent law given an opportunity to be
heard.
Way Opened for Fight.
The legislative situation confront
ing the bill has changed during the
! week of the hearing through the re-
peal by the House of It's rule re-
stricting the Offering of amendments
to the revenue measures from the
! floor. which republican leaders admit
opens the way for long and bitter
measure that may be submitted by
! the committee. President Coolidge,
! however. has Informed visitors that.
although he expects some changes In
the Mellon bill. he is convinced that
the Treasury Secretary's recommends
tions are gaining favor both in and
out of Congress, and republican
: House leaders are preparing to insist
upon enactment substantially as sub
mitted in the main points of his pro-
gram.
May Change Structure.
Republican leaders admitted that
with the rules revision adopted by
| the House yesterday 1t was possible
| the entire rate structure of the Mel
| lon plan might be changed when the
measure reaches the floor as a result
of elimination of the rule restricting
measures.
In this connection Representative
Oldfeld of Arkansas. democratic
whip, announced he would offer an
amendment when the bill reached the
| floor to restore the excess-profits tax
with lower rates; and Representative
Frear of Wisconsin,: fnsurgent repub-
| lican member of. the ways and means
committee, sought support for his
proposal to provide revenue for q
| soldiers bonus in. the tax bill In q
House.
Doubt as to Rules.
Chairman Smell of the rules COM
mittee said republicans could not
| hope to get a special rule to protect
the tax bill against amendments
| when it is brought to the floor, and
| admitted 1t was open to attack in all
| it's major rate provisions. He ex-
pressed doubt. however. that amend
ments proposing an excess profits tax
or a bonus would be considered ger
name under provisions of rule still
| in effect.
| Representative Garner of Texas,
| author of the democrats substitute
| tax proposal, has declared that If he
is not successful in the committee in
| obtaining normal income tax rates of
| 2 and 4 per cent in place Of the and
| 6 per cent rates suggested by Secre-
| tary Mellon, and higher surtax rates
than those suggested by the Treasury
Secretary. he would seek to amend
| the bill to this effect on the floor.
The income tax rates of the Mellon
plan yesterday received Endorsement
before the ways and means committee
! from the American Bankers League
! and the American Mining Congress.
, while they were criticized by the
American Farm Bureau Federation
and the National Grange, the latter
proposing higher surtax rates. The
| surtax rates of the Mellon program
at the same time were vigorously de-
Tended by Garrard Winston, under
secretary of the Treasury, in answer
ing questions of committee members
as to the probable effect Of the plan
on future revenue.