New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1925-10-20


tate and gift taxes entirely re-
pealed. leaving this field OF taxa
ton to the states 1t Is believed the
plan will so no further at this time
than tho recommendation for sub
stantlal reductions. There Is far
sighted politics mixed in this mat
ter and It Is clear the administra-
ton does not intend to furnish the
Democrats with any FREQ cam
puign ammunition later, ammuni-
ton which might not matter much
nationally, hut might come handy
in politically tight" states where
there will he congressional cleo
tons next year,
Although recommendation are
expected 10 be made to eliminate
certain bothcrsomc and useless
nuisance taxes, In spite OF Mellon
favoring them popular proposals
for q repeal OF taxes on automo-
bilcs. trucks, tires and accessories,
which yield Sl3o000,000 IN reve-
nue., also will be opposed In the
opinion OF many people this is
whore the tax reduction should
start. but the administration likes
the s130.o00.0o0.
Congress Is reported favorable TO
a substantial reduction IN sur
taxes. A recommendation for the
repeal of income tax publicity Is
expected to he included in the
revenue law. but Its success in the
Senate is regarded as doubtful. The
present publicity section was adopt
ed in the Senate by a vote of As
to 81. One report from Senate
leaders is that the inclination of
that body is to provide for more
rather than for less publicity Of in
come taxes. This will be quite a
blow to those who have been tell
ing the world how Ubiquitous in
come tax publicity has become: but
the Senate is the Senate, and the
majority in the Senate Is reported
of the opinion that the majority
outside the Senate favor this
species of publicity. Some of the
Senators, 1t appears, do not care to
take chances on losing votes. What
Secretary Mellon said about income
publicity yesterday Of course will
have no hearing on what the Senate
will do. In considering tax matters
1t Is necessary to differentiate be-
tween Melons recommendations to
the committee, the latter's recon-
mendations to the Senate, and final
ly what the Senate will decide to do
The Democrats are to formulate
what they are pleased to call a
real tax reduction bill" as a sub
stitution for the administration
plan. One of the real" planks in
| the bill will be the repeal of all
taxes on incomes of less than So
900, on the ground that these in
comes yield only about $4,000, 600
in returns, which they claim is
largely absorbed by the expense Of
handling the large total Of small
returns. A considerable number of
Republicans support this idea; and
| 1t also will be strongly supported
| by the small income tax payers.
The administration. which opposes
this plank, claims only a small
part of the internal revenue bu-
reau's $40,00o.000 appropriation is
required for handling small returns.
1t will be seen the two parties TO-
lently disagree upon the plank
mentioned and also the statistics
brought forward in connection with
it.
The other planks in the Demo
cratic bill have. not yet been made
public, but 1t is safe to assume
they will be far different from
those Of the administration. The
talk dies down in the halls of Con
gress n compromise revenue bill
\