Evening star., 1925-10-17
Democratic Leader Proposes
Plan to Free 100000
Persons of Tax Payments.
TEXAN HAS CONFERENCE
WITH TREASURY HEAD
Mellon Desires for New Bill Not
Revealed-Likely to Ask Slash
IN Surtax Rates.

With a definite agreement reached
among House administration leaders
to give the tax reduction bill right of
way In Congress, and with hearings
on the new revenue bill scheduled TO
start Monday. Representative Garner.
Democrat. of Texas, has come out with
program of tax cuts. calculated to
put about 5000, 900 taxpayers of mod.
crate means on the exempted list.
Mr.. Garner, who is ranking Demo
crat on the ways and means commit
tee which will draft the revenue bill.
led the minority fight during the last
tax revision, against the then socalled
Mellon plan, and the resulting present
act was a compromise between the
TWO positions.
The Garner plan was made known
last night, following the Texans con
ference with Secretary of the Treasury
Mellon, when the matter of proposed
tax reduction was discussed.
Details of the position of Mr.. Mellon
and the Treasury Department have
not been revealed, and it has been
stated from time to time by Treasury
officials that this year there will be
no definite Mellon plan" but that
the position OF the Treasury will be
committee.
Mellon to Appear Monday.
Secretary Mellon on the occasion of
the previous tax cut took the oppor-
tunity OF addressing an open letter
to Chairman Green Of the House
ways ard means committee, made
public at the Treasury, stating what
he thought could be done in tax re-
1 i T.1N.
! has done nothing of the sort this
year. In fact, he has deliberately al
! tempted to keep secret the Treasury S
! position in the matter until his dp-
/ pearance before the House commit
! tee. Air. Mellon is scheduled TO alp
| pear at the hearings Monday.
! The only lnklings as 20 a possible
! Treasury stand that had leaked out
previously We're that there would be
recommended d 20 per cent maAlIuunI
] surtaX, instead of the present 40, and
! a normal tax of per cent, instead of
/ the present C. 1t is thought likely
also Mr.. Mellon will reiterate his OBJ
! lection TO taX-eXempt securities.
After the conference Yesterday,
! however, Mr.. Garner said Secretary
Melons plan provided only for the
reduction of SurtaNes and inheritance
taxes. Mr.. Garner made no statement
as TO now MS counter liopOSoiI NCAS
received at the Treasury.
Contemplates Big Tax Cut.
The Garner plan which he said had
, been drafted without consultation
, with his Democratic colleagues, con-
templates a tax reduction OF from
! $3.50 600 600 to $500 900 geo, or approx
imately twice the total which some
observers have estimated the Treas
| ury may recommend.
! The whole Garner program is predi-
Gated upon retirement of the national
debt in e. years, instead of %, as pro-
posed by Secretary Mellon. MIR. Gar
ner said he favored the longer period
I because debtor nations would be
given that length of time in which To
pay off their obligations to the United
! States, which represent more than half
4 of the total of this Nations indebted
ness.
/ Whether Mr.. Gamers visit to the
/ Secretary of the Treasury and his pro-
nouncement afterward of a plan un-
! derStood to he much different from
what the Treasury will recommend,
I will result in a sharp Republican
/ Democratic row over tax reduction. or
whether the two parties will he able
! to compose their differences in com
/ mittee without attempting to make
/ political capital out of the tax cut, ap-
/ peared problem of sharp interest
! here today.
| Would Reduce Income Tax.
/ Under the Garner proposal this year
the relieving of 5000, 900 taxpayers
! from all taxes would be brought about
! by increasing the exemption to $1,000
| in the case of married persons and
! 500 in the case of single persons.
The cut would not stop there. however.
! Mr.. Garner advocating a reduction of
! the maximum surtaX rate to % per
cent instead of 20 per cent as the
| Treasury is expected to propose.
Repeal of all the nuisanc taxes also
is favored by Mr.. Garner if this is
| possible. These taxes, including those
on sales of automobiles and acces-
| sories, cameras, films and amuse
ments, are declared by the Represent
ative to be consumption or sales taxes,
TO the principle of which he is unalter-
ably opposed.
He declared himself to be in entire
| accord with Chairman Green of the
| ways and means committee on the in
heritance tax PROPOSAL program
! which contemplates the payment to
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