Evening star., 1925-10-19
Further Cuts Permissible.

For some time it has been apparent
| that the condition of the Treasury will
permit further substantial tax reduc-
tion during the next session of Con
greSs, and it has been known that
President Coolidge and Secretary Mel
Ion have been busy calculating how
much could be taken off the Federal
income tax and how the reduction
| could be equitably apportioned. Ad-
mlnlStration spokesmen have made
estimates of the total reduction pos
sible and these have averaged $780,
900 900.
Democratic leaders heartily endorsed
the idea of more tax reduction and
some of the administration leaders
began to believe that a taX-reduction
program could be put through the
next Congress without a political row.
But some time back, Senator Couzens.
a Republican, who declared in the last
taX-reduction fight that Secretary Mel
Ion was trying to give too much re-
lief to the large taxpayers, made d
speech agreeing that they ought to
have NEUTRALITY-SUSPICIOUS. the next time,
but declared that no tax should be
imposed on those with an income of
less than $4,000 year. This was the
first shock to administration leaders.
Now Mr.. Garner has picked up the
Couzens idea, with some differences.
lie has worked out a plan to exempt
about 10000 taxpayers of moderate
means from the Federal income tax
He says it can be done if the national
debt is retired in 81 years, instead of
20 years, as planned by Secretary Mel
Ion. Mr.. Garner would increase the
exemption to $4,000 for married per-
sons and to $4,000 for single persons.
Politics" cry some Republicans.
Justice to the great mass of the
people" insist the Democrats.
Mellon Hits Plan.
SO now Secretary Mellon has deemed
1t necessary to hoist storm signals in
letter to Senator Edge Of New Jer-
sey. Mr.. Mellon, in effect, says that
the Treasury could not afford
straight $1,000 exemption for all tax
payers. This would cost S167 .000, 900,
he estimates. Mr.. Garner does not
ask straight 5000 exemption, it
must be noted, but his plan, announced
after Secretary Melons letter was
written. appears equally unsatisfac-
tory to the Treasury Department
The Garner proposition has caused
uneasiness in administration circles,
because 1t is realized that some mem
bers might be afraid to vote against
il. Representative Bacharach of New
Jersey, one of the most active Repub-
liCan members of the ways and means
committee, has also declared against
the proposition to exempt all incomes
up to $1,000, and warns of the danger
of reducing taxes so low as to cause a
Treasury deficit. He recommended an
increase of $1,000 in the exemptions
allowed single and married persons,
making the exemption for a single
person s., 900 and the exemption for
~irI Ja
for a maximum Surtax rate on large
incomes of 20 per cent, which agrees
with the position of the Secretary OF
the Treasury, while Garner wishes to
make it 25 per cent.
Now Senator Capper. Republican.
of Kansas, chief of the farm block,
beliekes that the minimum upon
which the normal tax is collected
should be $1,000. He says:
II am in favor of adequate surtaxes
on great incomes, but not to the ex-
tent of Gripping business and indus
try Unnecessary and unreasonable
tax burdens upon business 'lndoubt-
edly clog business and drive capital
out of productive employment.
Would aid All Classes.
II am in favor of reducing income
taxes all along the line. All classes
of taxpayers, big and little should
participate, share and share alike, in
the benefits that will come from the
reduced schedule enacted by the com
ing Congress. We can and Will cut
taxes at least $3.50, 900. 1 think
the highest bracket of the surtax un-
auestionably can be reduced from 40
per cent to 25 per cent. The normal
tax can be reduced from 6 to per
cent I believe that the minimum
upon which normal tax is collected
should be increased to $4,000.
$50 long as the war debt lasts,
am in favor of continuing Federal
taxation of estates and inheritances,
but l think taxes Of that class can be
lightened.
The tax on automobiles and auto
mobile accessories, and all the So
called nuisance taxes should be re-
pealed. The corporation tax should
be reduced, especially on smaller con-
Germs.
II think it highly important Con
gress should act favorably and
promptly upon the proposed consti-
tutional amendment intended to stop
further issuance of tax-free bonds
Federal, State and municipal. This
is one of the great evils Of the pres
ent time. Billions of wealth is escap-
ing the pdSIlleIl VI itS JuSl Piopoi tiOii
of the country's tax burden, and there
bv increasing taxation on lands, live
stock, mercantile stocks, manufac-
tlIrers and all other tangible prop
erty.'
Shows Liberal View.
This statement by Senator Capper
shows that the liberal wing of the
Republicans in Congress is liable to
look very favorably upon the $4,000
exemption opposed by Secretary
Mellon.
Senator Frank B. Willis, Republi-
can, of Ohio, also commented today
on the tax-revision plans, saying:
In my judgment Congress will be
able to reduce taxes in the forthcom-
ing Congress about 1915, 100000 per
annum," and he suggests as a slogan
"A million dollars "a day of taxes
cut away" He believes that this re-
duction should come by general re-
ducuion of taxes and by cutting the
surtaxes in half Experience has
shown that the SurtaXeS defeat their
own object. They injure business by
driving capital into hiding, and the
Government does not get the tax it
is supposed to get. Indeed, the re-
turns to the Government" he COM
ments, would be larger if lower
rate were charged than at the present
time"
Here are some terse opinions of
members of Congress on the revenue
measure:
Representative John N. Tillman.