New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1925-10-20
TAX REDUCTION AND
IT'S PROBABILITIES

ITS PROBABILITIES
The first skirmish In the ''battle
Of reduced taxes took place be-
fore the House Ways and Means
Committee In Washington yester-
day. What will eventuate as re-
suit OF the hearings before this
committee will mean money in the
pocket - or the reverse--of every
person living in this vast land, for
In the last analysis the payment of
taxes affects everybody no matter
who happens to hand the money
to the government.
Politics will be played; scarcely
4 congressional hearing, investiga-
ton, or action on the floor of the
House and Senate Is entirely be-
reft of politics. Yet through the
strata of political argument will be
found a genuine desire by those on
both sides of the political fence to
reduce taxation. the main differ
tnce between them being diver
gence of opinion upon the method
to be followed 10 bring about the
greatly desired result.
Both parties are fully agreed
that substantial reduction in
taxes shall be embodied in a new
revenue law, which It is planned to
enact before March Is, 1926, when
tn Hrei payments Oh 1925 incomes
will be due The differences Of
opinion exist as to the amount Of
taN reduction that safely may be
madu at this time, and by what
method the reduction Is to be dis
lrbutcd among tax payers.
It Is important that the general
oitizen has a few staIwart ideas as
to The exact nature of the tax re-
dUction program and the possibli-
ties There are several ways to re-
duce taxes. but the proposed Re-
publican and Democratic methods
are not similar
The expected treasury surplus
this year will be $3.50, 100000. This
Is the amount of the tax cut pro-
posed by Secretary Mellon yesterday
and is exercising care and judi sment;
and two years hence another cut
might be made II the cut is not toe
much at this session. AS stated
Judgment is being exercised, hui
also some political Judgment.
Republican leaders in the House
have predicted reductions up &c
$4,000. 900. and such forecasts
have formed good reading. But II
too much is Topped off now, there
might be nothing to lop off whel
the presidential campaign ncars.
Leave it to the Democratic lead
ers In the Senate, however, TO Leaf
the country in the Topping off pro
cess All heavy federal tax payers
should be very friendly TO the
Democrats in the Senate. TheiI
plan is to lop off at least half a
billion in taxes, this great achieve
ment TO result by reducing pay
mcnts upon The national debt --
that is, funding It SO that it viii
run longer and drastic cuts ii
governmental expenditures.
The Democrats, not hcins 1t
power, naturally have the advan,
tage Of the Republicans in SUE
costing radical methods of lax re.
durtion, The possibilities arc tina
II they were in power they woul(
watch their step more carefully
However. there are many who set
much M rit in the Democratic pro
posals. especially those who eSpec
to spend The remainder of theil
days paying high federal tax"s.
The revenue act of 1924 reduced
taxation 10 the tune of s250,000,
600 on paper The actual loss II
taxes as result OF the now ac
will be less than that. according L
preliminary estimates OF the treas
ury department, which expects e
take in only about s212,00V,0o
less than previously. This gives 1h'
Democrats chance 10 entphasiz,
that If their half billion dollo
tax reduction plan we're to g
through. the actual re u CT Of
proha bly, would be less than that.
The administration tax reduc
lion plan sill call for 4 reduction
In suriaxes 10 maximum Of :
per cent on incomes above $3.50,
GOO. including a normal tax of
per cent the latter TO be reduce
from per cent Although the ad