Evening star., 1925-07-10
HOPES Of TAX CUT
ARE GIVEN IMPETUS
Federal Revenue Receipts
Far in Excess of Estimates
for Past Fiscal Year.

Possibilities of generous tax re-
duction by the next Congress re-
ceived a big impetus today with reve-
lation by the Bureau of Internal
Revenue that the tax cut last year
resulted in reduction of actual re-
ceipts by only about half what ha Id
been expected.
been anticipated to slice receipts by
about s400, 100000 for the six months
of the fiscal year 1925 during which
1t was operative, the actual reduction
for that period was only s212,16s4 40a.
Treasury officials feel that the re-
turns have more than borne out their
predictions that a cut in taxes to
give more freedom to working capital
would not only be beneficial to the
industry of the country, but would
continue to support amply the Gov
eminent with revenue.
Surtax Cut Likely.
Much speculation was expected to
be engendered by the revenue re-
ceipts published today, on the mat
ter of the top bracket of the surtax
in the next tax bill, with probability
that there might be an inclination
now to favor smaller maximum
Secretary Mellon has contended con.
sistently that lowering of the maxi
mum surtax would bring out huge
funds from tax-free securities to go
to work in the business of the coun-
try. not only stimulating business it.
self, but providing revenue to the
Government, which formerly was hid
den in tax-free investments.
While the Treasury so far has re-
Trained from naming a specific figure
for the new maximum surtax, there
has been free discussion of the mat
ter among members of Congress and
others. Maximum surtaxes ranging
from 13 to 25 per cent have been ad.
vocated, the higher one being spon-
sored by Chairman Smoot of the Sen.
ate finance committee and Chairrna n
Green of the House ways and means
committee. Senator Underwood of
Alabama has suggested a IS per cent
maximum surtax. and Frank w. Mon
dell, retiring member of the War
Finance Corporation, has favored a
Is per cent limit Senator Glass of
Virginia favors 20 per cent.
Favored by Both Parties.
Although Democratic speakers have
made some attacks upon the so-called
Mellon plan of the last Congress, and
Senator Glass, in particular, has taken
occasion TO relterate ne Is IN 1aVOr OF
"outmelloning Mellon" so far there
has been no sharp political line drawn
in the prospect of cutting down the
tax burden of the American people.
Both Republican and Democratic lead
ers are in favor of a substantial tax
cut, while there has been no indica-
tion of obstructive tactics of any kind
from adherents of the third party,
headed by the late Senator La Fol
lette 1t has been said at the Treas
ury that this year there is no Mellon
plan"
There has been some optimistic dis
cussion hoping that with the House
ways and means committee getting
hearings under way early in the Fall
before the opening of Congress in
December there would be a possibility
of passing a new revenue law before
the 1st of January, 1926. This, how
ever, has been discounted by many
close observers of the situation, who
feel that to rush the revenue bill
would lead to Ill considered legislation.
$s,5s4,o1O,s47.5O Income.
The Internal Revenue Bureau in
it's figures for the fiscal year ending
June 80, 1925, shows total tax collec
tions of s2,5S4, 4,010,S47.50, as compared