The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-07-20
TAX REDUCTION
SENTIMENT
CROWS
Congress Almost Certain to
Slash Rates-Writer Out
lines New Program
By RICHARD HATTON.

Continuing interest is being
manifested in Washington banking
and financial circles generally in
the possibility of a reduction In
Federal taxes. The subject was
covered in an address by Frank
W. Mondell, former House leader
and advocate of lower surtaxes, at
the District of Columbia Bankers
Association at Hot Springs, and Mr..
Mondell has also been spreading
the gospel Of lower taxes in speeches
at other gatherings throughout the
country
In an fllluminative articls on the
next possible tax cut published in
the July number of the Magazine
of Wall Street, Aaron Hardy Ulm
outlines the present tax program as
follows:
A reduction in Federal taxes in
the amount Of from $500, 900, 900 to
$500, 900 900, the bulk of it being
in those on personal incomes. Re-
duction in the maximum surtax to
25 per cent or less. Graduated re-
duction in surtaxes to the extent OF
from 10 to % per cent. The exemp-
ton minimum will be raised, also
the beginning bracket for surtaxes.
The normal tax will probably be
fixed at 2 per cent for all incomes,
with the present 25 per cent offset
for earned" incomes within a
maximum that will be raised. A
modification OF the gift tax. Pos
sibly a modification Of the capital
gains tax. Modification, IL not
abandonment, of Federal estate
taxes. An absolute limitation OF
five years time for holding open
lny income tax cases.
Sees Plan Accepted.
This program is not credited by
Mr.. Ulm to the Administration or
to any official of the Administra-
don. He declares that the plan
will not be known as anybody's
plan, but he believes that unless
all signs fail, its main essentials
will be put into law" And he
next Congress will out-Mellon Mel
ION in adjusting Federal taxation
along conservative lines"
Mr.. Ulm finds that there has
been a surprising change in the
Congressional attitude y a year
and a half ago. he says, "adher-
sITts of the Administration had to
exert their supreme strength in
order to- procure Q. ten-point reduc-
lion in the maximum surtax."
Now, he finds, there is a posi-
Sility they will have to exert their
influence to prevent reduction
seing made below. what, is aeeded
TO bring in necessary revenues"
Reports from many sections of
he country where the educational
campaign has been carried on along
the- lines. of q general or specific
AK reduction bear out the findings
# Mr.: Tim and, especially in finan-
:ial circles in Washington, there is
/ growing feeling that the. present
plans no matter under what name
hey go, looking to an abatement
n taxation will bear fruit in the
sext Congress This feeling is set
orth by Mr.. -Ulm in the Magazine
II Wall Street in. the statement
hat Even Senator Couzens of
Michigan, formerly the arch-foe of
I'll that bore the Mellon stamp and
irm opponent of the theory that
higher surfaces promote evaSions
more than they produce revenues,
g now for a cut beyond what has
,een advocated by the Treasury.
5e further states that Chairman
Green, of the House Ways and
deans Committee, who also OPP
POSED the Mellon plan, is now for
adjustment in the income tax along
he lines of that plan.
Coolidge for Tax Cut.
Some members Of Congress"
avs Mr.. Ulm, "go even farther
han Couzens or Green" and he
inds that there are even some who
would put the tax back to a pre-
var basis. 1t is pointed put here
hat President Coolidge has re-
ieatedly expressed himself in favor
II a reduction in taxation and It
known that Mr.. Underwood
undertook his work along the line
# spreading the gospef or reduction
Nth the entire approval OF the
administration. 1t is, also, indi-