The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-07-09
FIGHT IS DUE
IN CONGRESS
OVER TAX CUT
Capital Already Preparing
to Tackle Problem at
Coming Session
~ CHARLES +. STEW ART
NEA SCryicG Writer


Washington, u. c., July 9.-Thc
GJth Congress Of the United States
scheduled to convene in December, is
already rolling up it's sleeves, tight
cning its belt, and preparing to
tackle once again its ever present
problem, the Income Tax.
TO start with, it will consider
these facts:
The number of income taxpayers
is increasing.
Their net incomcs-on which tht
tax is lcvicd-arc increasing.
But due TO tax rate reductions,
both the average individual tax and
the total tax collected have de-
creased.
In 1928, pers ona income tax re-
turns were made by 6,787,48l per-
sons--G.20 per cent Of the country S
population.
These reported a total net income
of ST. 336,53O, 900 for the preceding
year. and paid Il total tax Of $oGl,-
C57,30S.
The average net income was
$3,l43.iG and the average tax Sl.6.S6
IA rate of i.04 per cent.
In 1924, returns were filed by
T,69S.32l personal---very. Z per cent
Of the population-wh reported a
total net income Of $26,336,337,o43,
but who paid total tax Of only
$703, go 1865.
The average net income had risen
to $3.42l .05. but the average tax had
fallen to SOL .4i-a rate Of 2.G1 per
cent.
Compilation of 1925 figures is not
yet entirely completed, but the work
,L yu ,tsvH IN ~
that the trend will be the same.
There will be an increase in the
number Of returns. an increase in net
incomes, but a decreAsc-duc to still
further rcductions--in the taxes col
lcctcd.
Treasury Department officials est
mate that more. than 100000 per
sons filed returns this year. The
total net income reported. they say
will probably exceed $4,000, 100000
Yet on this income they are
counting on collecting 4 personal
income tax of but S670,000,O00.
The average tax will probably be
in the nelghborhood Of S75.
As to next year-thats where
Congress comes in.
1t has been announced that an
other income tax reduction is to be
made.
The voters want it, Congress wants
it, and the administration wants il
making it just about unanimous.
But the question is: What form
will the reduction take?
The Democrats and Progressives
in Congress, as a whole, are in favor
of II cut in the normal tax rate-now
per cent on the first $4,000 Of net
income. 4 per cent on the next $4,000
and per cent on the balance.
Secretary of the Treasury Mel
lon. however. is in favor of reducing
the surtax-that extra tax which i:
now added on to net incomes in ex
cess of $4,000.
Just how far the administration
will back him in this plan is prob
lematcal And if the administra
ton should back him, it is doubtful
how far the Republicans in Con
grcss will back the administration.
Melons plan is far from bcint
popular with the voters whose ne
incomes arc less than O.0O0-whicl
mcans big majority of the voters.
On the other hand. it is extreme
lv popular with those fortunate in
dividuals having large incomes-an'
influence.
When it comes to showdown be
tween votes and money power, there
no way of telling what will happen
The best guess is that the mex
income tax cut will be cOmprO
mise quite likely cut in both nor
NAL tax and surtaX.
Again. it is possible that tn
whole affair may end in squabblc
with no changes made in the presen
law.
In this case, the income taxpayer
would continue paying just VIVA
n hov'ro payipr now