The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-06-12

Administration May Propose
$50. 600. 900 Cut to
Fall Congress
nv H.K. REYNOLDS.

by N M NE NOLDGs
With the arrival here Of Senator
Reed Smoot Of Utah, chairman
Of the Senate Finance COMMITTEES.
for conference with Secretary Of
the Treasury Mellon and other
officials, the Administrations tax
revision program, to be submitted
to the next Congress, has begun
to take a definite form.
SmOOt To Stay.
Smoot probably will remain here
for several weeks, not only to work
on the tax problem, but to act with
the American Debt Funding Com
mission, of which he is member,
in forthcoming negotiations with
Belgium and other nations which
may undertake funding operations.
AS to revenue legislation in Con-
gress this winter. Smoot agreed to-
day with President Coolidge and
Secretary Mellon that the revenue
act OF 1924 Is unsatisfactory in
many respects and that a country
wide demand is developing for tax
President describes 1t.
This would include the elimina-
ton of the discriminatory taxes"
which are now held to restrict bust
ness by demanding too great a
tribute from the larger incomes.
Reduction OF surfaces will be pro.
posed along with more liberal ex-
emptions for small incomes, although
the last tax law provided for greater
reductions in the latter class than
those originally proposed in the
"Mellon plan"
Smoot also favors the abolition Of
the Federal inheritance and gift
taxes. leaving it to the States to
make that levy if they so desire.
Fight Starts Early.
The increasing attention being
given to the tax problem, both in
and out of Congress, indicates, even
at this early date, that lines for the
next tax fight will be approximate
ly established by the time Congress
meets. The Treasury's recon-
mendations for tax reduction and
revision, while varying little from
last years proposal, will not be
definitely determined until the end
of the present fiscal year on June
80, when the extent Of the cash
surplus is known.
Regardless of the amount Of the
surplus, however, it is expected
that the total taX reduction ordered
by the next Congress Will ne III
the neighborhood of half a billion
dollars annually.
Discussion of the tax rroblcm at
this time, is not limited to the
Administration and Republican
leaders in Congress. The Demo
Gratis, as before. are likely to have
tax plan of their own, providing
for sweeping reductions in the
rates on small incomes and insist
ing on higher taxes in some cases
than those proposed by the Admin
istration.
Underwood to Launch Move.
Senator Oscar w. Underwood, OF
Alabama, former Democratic leader
of the Senate, will open a cam
paign tonight for income tag re-
form in an address at Montgomery,
Ala. Among Underwood's sugges-
tons will be that the taxes on
largre incomes should be reduced
substantially, his position being
that the present tax law is "un.
scientific" and that revision is
required to assure the continued
prosperity of American business
and industry.
Underwood's views, of course. Will
not have the approval of all his
Democratic colleagues in Congress,
but they are bound to be listened
to and taken into consideration
when tax legislation u before the
Senate.