Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-10-30
SURTAX REDUCTION
PLANS MEET FAVOR
House Committee Members
Also Indicate Approval of
Cut in Inheritance Levy.
BY the A,soc,sted Press.

BY the Associated Press
General favor among members Of
the House WAYS and means committee
for substa reductions in both the
income, surtaX and inheritance tax
rates has now become definitely ap-
parent from expressions given in the
public hearings on new ia X legislation.
The committee. which will start
work in drafting a tax reduction bill
next Wednesday, heard Endorsement
for such reductions yesterday from
Prof. Adams of Yale University, who
advised with the Treasury in the
framing of the first income tax law.
Secretary Mellon has asked reduc
ZION of the ma ximum surtax rate from
40 TO 20 per cent and repeal of the
iHheritance levy. Many committee
members, both Republicans and Demo
Gratis, have expressed favor toward
cutting The surtax TO 25 per cent, and
possibly 10 90 per cent
inheritance Tax Difficulty.
Argument of the Treasury Secre-
tsry that the inheritance tax should
be repealed and left entirely to the
States finds opposition in both ranks.
however, chiefly because OF The loo
ohle for evasion offered in the fact
that Florida and labama have no
such tax. At the same time pro-
posals for reduction of the present
rates with a maximum of 40 per cent
and for increasing the credit allowed
for payments on State inheritance
taxes have found distinct favor among
committee members.
Proposals for reduction or repeal of
o TO tNh
yesterday by the American Drug Man
ufacturers' Association. continued as
the subject of discussion today at the
committee bearings.
Asks Repeal Of Levy.
Repeal OF the levy was urged by
Eugene G. Brockmeyer. representing
the National Association of Retail
Druggists, in presenting statement
prepared by Frank T. Stone, its
president.
1T would not only rebound to the
benefit of the consuming public as
well as pharmacy in all it's branches"
he said. but 1t would serve to en-
courage retail druggists to return to
the manufa cture of their own alcoholic
medicinal preparations and thus tend
to promote their professional develop
ment in the interest of the public
health"
Alcohol Withdrawn by retail drug
gists is used for number of ''indis-
pensable purposes. the statement
said, including the compounding of
prescriptions for liquid medicinal
preparations. and the lax of S4.18
wine gallon has added considerably to
the costs of these products.
Repeal or reduction of the tax on
billiard tables and bowling alleys
was urged today by r. j. Cooper of
Minnea polls, representing the Ma
tional Council of the Y. NJ. c. A.
He pointed OUT this organization
operated on a non profit basis and
the $50. 900 assessed against Y. NJ. G.
A. annually by this tax was burden
some.
Presenting the report OF the ma
tional industrial conference board, l..
r. Gottlieb of New York urged reduc-
ton of the maximum surtaX rate to 20
per cent. The report asked a normal
rate of per cent on the first $4,000
of taxable income and 4 per cent on
the remainder, immediate reduction
of the inheritance levy and repeal of
many of the special taxes.
Elimination of formal court pro-
cedure by the Board of Tax Appeals
and repeal of the publicity of n
come tax returns also was proposed.
Brokers' Tax Repeal.
w. r. Craig. representing the New
York Coffee and Sugar Exchange
and the New York Cotton Exchange.
proposed repeal of the brokers' tax
amounting to $3.50 each to members
of these exchanges, and of the stamp
tax of l cent on each 500 transac
tion.
The latter levy amounted to sales
tax on necessary farm produce, Mr.
Craig declared. Cotton farmers even
tually are forced to pay these taxes
on cotton deals, he said
Representative Crisp, Democrat. of
Georgia argued cotton farmers partici
pated in little more than l per cent
of the Cotton Exchange transactions.
Mr.. Craig said it was impossible to
estimate this.
Legitimate and necessary "heds
ing by traders forces from to 20
sales of one bale of cotton. he sail /.
and consequent number OF tax
leyies on 1t. The tax in the final
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