The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-10-19
Tax Reduction Next Year Is
Estimated From $780,
OOO. 900 to 5OO.OOO,OOO
Treasury Secretary Does Not
Favor Further Reduction
of Exemptions
MEILON'S PROPOSALS

come surtaN to 20 per cent with
corresponding decreases all along
the line was proposed To the
house ways and means commit
tee today by Secretary Mellon.
The nGrmal rate would be- fix
cd under the sccrctary's sugges-
tiOnS III one and one half per
cent instead Of two per cent OM
incomes up to $4,000; at three
per cent inst cad Of four per cent
on incomes Of $4,000 tO $4,000;
and at five per cent instead Of
six per cent on incomes in cN-
cess Of $4,000.
CA resume of Secretary of the
Treasury Melons recommendations
to the ways and means committee
concerning the reduction of taxes ap
pears on page 81
Washington, Oct. l9.-lP)-The
first step toward another slash in
the nations tax bill was taken to-
day with the assembling of the
house ways and~means committee to
consider downward revision of the
present lcvicS.
Mark ing the third time in six
years that the committee has set its
hand to the welcome task of chop
ping off some of the tax burdens,
the gift to the taxpayers this time
in the form of Il reduced bill for
next year promises to be somewhere
between $200,000,0 900 and S500,00U
600. All hands were ready to advo-
cate reductions today, including the
treasury and members of both ma
jor parties in congress. Republi
cans want cAs totaing Aatween $780,
600 900 and 100000 900, while Dem
ocrats, as repre- sentcd by their rank
ing member on the committee, Rep
rcsentativc Garner of Texas. believe
reductions can be made up to $780,
OO0 900.
Wants MELONS Views
The committee waited FIRST, how
ever, for the views of Secretary Mel
lon, who is asked to appear as the
first one on the list for the public
hearings. which opened this after
noon and will continue for two weeks
before the committee was called to
convene for an executive session
early in the day.
Although prior to appearing be-
fore the committee Secretary Mellon
had carefully refrained from advanc-
ing any definite tax return scheme,
the treasury has estimated that Il
surplus Of at least $250,0O0,O00 would
be available for reduction of the
lax rates. There also had been
definite indication that the treasury
would favor a maximum surtaX rate
Of 20 per cent instead Of the pres
ent 40 per cent, rs we'll as cuts in
The normal rates.
Opposes Larger Exemptions
Secretary Mellon further made
lear before going before the COM
nittee that he is opposed to increas-
ng income exemptions as advocated
)y Representative Garner and also
suggested by Senator Edge, Re.Dub,i-
IAN of New Jersey. in a letter to the
New Jersey Senator. Replying to
1ls suggestion that all persons with
incomes Of $4,000 or less be exempt
ID from taxes, Mr.. Mellon declared:
The sole result Of such change
would be an enormous loss of revc-
lue to the government without n
single compensating advantage
The letter also is taken as reply
o Mr.. Garner's proposal to increase
he exemptions of single persons
red persons from $500 to $4,000,
md the proposal of Senator Bachar-
'ch of New Jersey. a Republican
member Of the committee, to in
.rease the exemptions to $4,000 and
$1,000, respectively.
Predicts Quick Passage
Chairman Green Of the ways and
means committee has declared Il bill
Will be ready for the house upon the
of congress in December
md predicts its passage there before
Christmas. Senate leaders declare
he measure can be finally enacted
nto law by March l. Is days before
sirst tax payments Of the new year
ire due.
As result of their increased ma
ority in the house, Republican men,
'ership on the committee is in this
session to ratio Of Is to 10. 1t was
a to II at last session. with repre-
sentative Frear Of Wisconsin, who
las since been voted off the commit
ee by the Republican caucus. count
ID on the majority side.
YeppS Win Rnhhod