Evening star., 1925-11-03
PRESIDENT HOPES
FOR HUGE TAX CUT
Thinks Total Slash May Ex-
ceed $500, 900, 900 Limit
Set by Mellon.
BY the Associated Press.

BY the Associated Press.
President Coolidge is hopeful that
taxes can be reduced by more than
$500 900, 900 although he believes no
safe maximum can be fixed until the
budget for the coming fiscal year Is
completed.
Secretary Melons recommendation
was for a reduction of from $3.50
900 900 to $500 900, 900. but IL was dis
closed today at the White House that
the President was not convinced the
cut would have TO be held within that
limit
Estimates made in Congress have
run all the way to s500,000,000.
Hearings Near End.
The House ways and means COM
mittee called upon officials Of the
Internal Revenue Bureau to outline
conditions there at the concluding
sessions today of Its hearings pre-
paratory to drafting the new tax bill.
The committee has heard argu-
ments for repeal or reduction of al
most every tax now in effect, and to-
morrow it plans to start the actual
work of whipping the new revenue
bill into shape.
The committee has before it es-
Inmates of the Secretary on the
cost of collecting various taxes.
These place the cost of collecting
each 500 of revenue during the
last fiscal year at $1.4i. He did not
have figures on the cost of collecting
specified forms of taxes. but esti-
= n
to collect returns on incomes of
$4,000 and less. with about s167, ,000,-
600 netted from this source.
At the opening of today's hearing
n maximum income tax rate of 25
per cent normal and surtax rates
continued. and repeal of the inheri-
tence and gift levies was proposed in
a statement submitted by Eugene Z.
Thompson on behalf of the Invest
ment Bankers Association of Ameri-
ca.
The association also asked elimina-
ton of the provisions of capital gains
and losses for purposes Of the income
tax. Exemption of interest on bonds
of domestic corporations held by non
resident aliens except in cases where
a country imposes taxes on it's bonds
held by a resident of this country also
was urged as was repeal of the clause
providing publicity of income tax re-
turns.
Gregg Supplies Data.
The Internal Revenue Bureau ex-
poets to bring the work up to date by
the close Of this fiscal year, A. w.
Gregg, solicitor of the bureau, told the
committee. He said at that time all
but $4,000 contested excess profits
cases and only claims filed for this
fiscal year would be pending A plan
to give field agents power to settle
small claims for refunds also is under
consideration.
Proposals to eliminate provision for
capital gains and losses We're frowned
upon by Mr.. Gregg, who warned if
such action were taken it would re-
quire many other changes in the law.
AS he was testifying, Chairman Green
and Representative Garner, ranking
Democrat on the committee, compli-
mented the administration of the bu-
reau.
Exemption from the per cent tax
on coin-operated devices of PLAYER
pianos was urged by w. D. Nance
of Chicago, speaking for the J. P
Seeburg Piano Co. Pianos with slot
devices are widely used by com
munity centers, he said.
Revision Of the prohibition law to
permit policing of breweries rather than
extension of this power TO prohibition
officials through imposition of a tax
on beverages was proposed by Levi
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