The Washington times., 1925-10-17
I AZ. FIGHT
To START
MONDAY
Ways and Means Committee
to Hear Mellon
Estimates

The tax reduction battle be-
tween Republicans and Democrats
in Congress will open. Monday
when the House Ways and Means
Committee starts preparation of
the necessary legislation.
Secretary Mellon and Treasury
sax experts will submit statements
on the condition of the Treasury
With estimates of total revenue
.eceipts and probable expenditures
turing the next fiscal year of the
Government.
Mellon Cautious
The Secretary is expected to sug-
gest the maximum cut in revenues
that can be made safely, with
recommendations of existing taxes
That could be dropped and others
that could be reduced with satisfac.
ton to the taxpayers and without
danger to adequate revenues. He
will not present plan of tax re-
duction which could be seized upon
and labelled by his opponents as
the Mellon plan.
Republican ands Democratic mem
bers of the Ways and Means Com
mittee have announced differences
In policies to be pursued in making
the tax reduction, but they are
agreed that the tax burden shall
be lowered. 1t is assured that rnost
OF the so-called nuisance taxes shall
be repealed and most remaining
special taxes reduced.
There will be a cut in the present
40 per cent maximum on income
surtaxeS, probably to a maximum of
20 per cent. Corresponding reduc-
tons Will be made in the taxes on
sirlaiI incomes, but there is strong
opposition to d suggested exemption
from taxation of $4,000 a year for
heads of families. The Democrats
will present a plan for scaling
downward the income tax schedule
differing materially, it is expected.
from that presented by the Repub-
tlcans who are in majority in Con-
greSS.
Perfected legislation win be pre-
sented by the Ways and Means
committee to the House at. the
opening of Congress in December
and the legislation will be passed
and sent to the Senate by the
Christmas holidays. 1t is the in
tent1on of Congressional and Ad-
miIristration leaders to have tax re-
duction effective before March 15.
next. so that it may apply on tax
payments for the current year
which become payable on that date.
Tax reduction legislation and
passage of the money supply bills
for the needs of government
during the next fiscal year appear
now as the only necessary legisla.
tive work for Congress at its com
ing session. The appropriation bills
will run conourrently with the
tax bill. The extent of the tax
cuts depends in part on the totals
of appropriations, the latter totals
determining whether this revenue
cut shall be as low as $3.50, ZOO, 900
or as much as $500, 0O0, 900, each of
which amount has been suggested.
With this state of affairs exist
ing Congressional leaders are sug-
costing adjournment of Congress
before June; next. The House
has nothing ahead of it more con-
troversial than final disposition of
Muscle Shoals properties.
The Senate has the question of
United States entrance into the
World Court and the Brookhart-
Steck Iowa senatorial contest to
determine. "A program of early
would not have my
provided necessary legis-
lation had been enacted said Con
gresham Ellison Connecticut, who
will be the next Republican floor
leader Congress has been enact
ing too many laws at It's recent I
The suggestion for an early al
journment originated on the Senate
side. 1t was explained that while
the Senate leaders feel they have
scotched the agitation by Vice Presi-
dent Dawes for changes in Senate
rules to permit of quicker dispatch
of business they believe the c0uu
try is waiting to be shown that tire
Senate under existing rules can
hustle legislation when occasion de
and complicated domestic or
issues are not pend
ing