Evening star., 1925-10-21
DRIVE FOR TAX CUT
OPENED IN HEARING
Nine Organizations La,
Cases Before Committee
at Initial Session.
By the Associated Press.

By the Associated Press
Varied forms of tax relief were
sought by number of organized in
terests through representatives ap-
pearing at today's session of hearings
before the House ways and means
committee on a new revenue bill
Nine organizations were allotted
time today by the committee, which
will hear all parties interested in the
proposed tax reduction measure be-
fore starting work a week from Mon
day on the drafting of the bill.
Exemption of salaries of employees
of municipal-owned systems was
urged by Representative johnson, Re-
publican, of Washington, who spoke
for the municipal employees of Taco
ma. Committee members suggested
this was legal point for the courts.
Charges Discrimination.
b. c. Little of Rochester, y. Y,
speaking for the American Water
Works Association, pointed out that
recent interpretations of the present
law had made salaries of employees of
municipal-oWned water systems SUBJ
Ject to the tax. and he insisted this
was discrimination, since State and
other municipal employees are exempt.
Representative Hawley. Republican
oregon, pointed out there was a diff
ference between employees on city nav
rolIs and water works pay rolls.
II l had my way" said Representa-
tive Garner. Democrat, Texas. II
would tax all city and State employees.
but the Supreme Court holds another
view. So it seems to me this is I'D TO
the court also.
Petitions for repeal of the capital
stock tax on corporations and the au-
tomobile accessories levies were pre-
sented on behalf of constituents bv
representatives Hawley and Tpshaw.
Democrat. Georgia.
Opposes Retroactive Clause.
Adjustment of the retroactive fea
lures Of provisions Of the law relating
to gain or loss involved in transfers
OF property in connection with bust
ness reor CARNATIONS was asked by
Mckinley W. kreigh. OF the Ameri-
can Mining Congress. He suggested
that the retroactive date, If retained.
be set at December 81, 1924, instead
Of December 81, 1917.
0. K. Davis, representing the Ma
tional Foreign Trade Council. asked
exemption from taxation Of incomes
OF American citizens resident in for
elsn countries and engaged In the
promotion of American foreign trade
No other nation imposes levies on
similar citizens, he said. and American
commerce suffers accordingly.
We are asking that these men who
are promoting American foreign trade
and rendering distinct national sery-
Ice. he said, ''be relieved of an un-
fair handicap and placed on q plane
OF tax equality with foreign com
petitors.''
Representative Rainey, Democrat
Illinois, asked If the burden Of tax
was not much less on American cit
izens abroad than those here.
Would Limit Exemptions.
Mr.. Davis said the cost of living
in many foreign countries was as
high as or higher than here
Representative Garner suggested if
the exemption were allowed 1t would
be profitable for Americans to reside
abroad. but MI. Davis replied eXemp-
ton was asked only for those enga ced
in American trade.
The American Bankers Association
asked repeal of Il provision under
which the grantor Of q trust is com.
PEELED to pay tax on the income of the
trust If he retains power to reyest
himself of title. W. II. Baden, speak
ing for the association. declared the
provision taxed creators Of trusts. in
stead Of the actual benef1ciaries.
1T means penalizing those actuated
by charitable and benevolent i'm
pulses he said.
Chairman Green and Representative
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