Evening star., 1925-10-18
bACHARACH FAVORS
HIGHER EXEMPTION

for Married Man and $1,000
for Single Taxpayers.
With hearings on Federal tax re.
duction starting tomorrow, Represent
ative Bacharach of New Jersey. a
Very active Republican member Of
the ways and mean committee, finds
such unanimous zeal for ma king radi-
cal slashes in the existing taxes that
he fears enthuSias SIN may carry both
Democrats and Republicans so far
that a Treasury deficit may result,
aud he counsels attacking the prob
lem in non-partisan spirit.
Representative Bacharach figures
that the Federal taxes can be safely
reduced $500. 900 900 in the new reve
nue. bill. and favorS repeal of the pub
licity feature OF the present law. Civ
ing in detail the reductions or aboll-
tionS which he faNorS to accomplish
a saving to the people of $40O 600 900
Representative Bacharach says:
The committee on ways and means
will meet Monday to begin public
hearings and give consideration To a
new revenue bill to be submitted to
Congress Immediately upon conven-
ing in December. Both the Republic
an and Democratic members of the
committee seem IT, he II accord upon
the question of a SuhSta ntial reduction
in taxes so much so that the danger
seems TO lie in the fact that-with the
various taN.reducing programs advo-
Gated by both parties-we may go so
far To reduce Federal taxes So low
as to cause deficit in the Treasury
at the end of the year.
Not Mere Party Affair.
The question Is such an important
one that il should he handled in Il
non partisan spirit: both parties are
agreed that taxes should be reduced
and we should try TO agree in com
mittee the extent to which reduction
should he made In the various
schedules. / believe. therefore. that
an invitation should. and will, be eX-
tended to the minority members Of
the committee To sit with the ma
jority members not only at the hear
ings, but In the executive sessions
which are to follow the hearings, at
which the various rates to he carried
in the new bill will he determined.
The country is dema nding the reduc-
tion of Federal taxes to the lowest
point possible consistent with the
needs of the country; there Is little
political advantage To be gained by
either party in the making of a new
TAX law; IT a substantial reduction Is
made the people will be satisfied and
naturally credit viii be given to the
party in power: on the other hand the
country is in no mood to countena nee
obstructionist or demagogic tactics
on the part Of any one for the pur-
pose of emba IRA ssing the present ad-
ministration in the coming congress
sional elections.
The paramount question to be de-
termined, therefore. is the extent to
which we may reduce taxes. Consid-
ering the very excellent financial con
dition of the Government at the end
of the fiscal year 1925, and the fac
that receipts for the year under the
revenue act Of 1924 We're more than
two hundred millions of dollars
greater than anticipated under the
changes made by that act-a real
Justification, by the way Of the pro
ponents of lower surtaXes-it would
seem that we can safely figure on re
duCing taxes to the extent of $500
600 900 in the new revenue bill. To
take up this reduction ! shall advo-
cate the following changes in the
present revenue law:
Increase by 81 900 the exemptions
now allowed TO single and married
persons. making the exemption for a
single person $4,000, and for mar
ried person S3,50O. Extend the age
limit for dependent children to 81
wears instead of IS; this change is
suggested for the reason that children
between those ages are usually COM
pleting their education and are there
fore greater expense to their par
ents than in their earlier years.
The normal tax on the first $4,000,
above such exemptions to be l per
cent
The normal tax on the. second
per cent.
The normal tax on the third $4,000.
above such exemptions to he 4 per
cent
The normal tax on all incomes
above S12. 900. above such exemptions
To be 6 per cent.
Surtax to begin on incomes Of So
900, and the maximum rate to be 20
per cent.
Il am opposed to the proposition OF
eXempting all incomes up to $4,000.
believe ii makes one take greater
interest in their Government if he or
she has TO pay some Federal tax. and
under the rates and with the eXemp-
tions suggested above the amount Of
tax ON incomes up to $4,000. would be
very small and would not be u burden
or hardship 10 any one.
Repeal the tax on club dues. The
tax on admissions to apply above
$50.
Repeal all the excise taxes carried
in Title VI Of the act of 1924, such as
ol q
iewelry. fire arms and ammunition.
cameras and lenses. cigar holders and
pipes, etc.
Estates tax to begin AT s100 900,
with a maximum rate of 2n3 and the
same with the gift tax.
..Corporation tax to be reduced to
at least 10'e.
Opposes "Tinkering."
Il favor the repeal of the publicity
feature of the present law, and I
would also favor the entire repeal of
the estates and gift taxes if it were
possible to accomplish this: II may be
that ii could he done in the House.
but / doubt very much that it could
be put through the Senate.
'Tinkering with our revenue laws
from year to year is equally as bad In
its effect upon business prosperity as
tOUSldHl iilcbuilhso WIN WI eo' ~ ia w -
We know for an almost absolute GER
tainty that the cost of running our
Government for a number of years to
come is not likely to fall much below
| three billions of dollars; we know
pretty we'll how much of that amount
we are likely to raise from sources
other than taxes. We should, there
fore, plan a tax bill which will meet
our requirements for the next few
years to come. With the. enactment