Evening star., 1926-02-14

far as they car be reduced without
causing a deficit in the Treasury. The
Secretary of the Treasury has stated
that the reductions made by the Sen
ate. in addition to those included in the
original House bill will so reduce reve-
nue. that a deficit will be caused. and,
OF course. neither ] nor any one else
who wishes to keep Government
finances on sound basis can support
proposals which would have that eff
feet. however meritoriouS they may he.
"Some Of the tax reductions made
in the Senate would otherwise have
my complete approval. among them
the complete repeal of the estate tax
and the taxes on automobiles and ad-
missions. I think these taxes should
be repealed entirely, and if some plan
could be worked out in conference
looking toward their repeal at fu-
ture date when our financial condition
will have been sufficiently improved to
warrant such reductions, | shall not
be disappointed.
Will Insist OH Changes.
81 believe that it is the intention
Of Mr. Green chairman of the ways
and means committee, and the other
Republican members who VIII be on
the conference committee. to rigidly
as passed by the Senate, which VIII
prevent reductions being made of
nature to embarrass the executive
branch Of the Government. With
reference to the acceptance OF some
Of the Senate amendments TO go into
effect in the future. l express onlF
nv personal opinion and have no
information as TO the views or those
who will be members of the CONFER
ence committee on the part OF the
House or whether 1t is practical 10
embody such plan IN leSlSid'ioH a'
this time.
Senator Smoot and Mr.. Green eh-
nressed their confidence that the tax
reduction bill would become law IN
time for the new rates to be effectlFe
in making the income tax returns ana
payments due March 10.
In stressing the need Of slicing Sl0o,-
900 900 plus from the total tax reouc-
ton as it passed the Senate, senator
Smoot called attention to the fact that
this Congress proposes TO put through
a public buildings bill which will au-
thorize the expenditure OF some sloo'-
600 900, of which $50 .000, 900 or $40 ,ooo-
600 will be expended this year: a rivers
and harbors bill and a pension OIL
ALI of which are outside the budget.
There is other legislation pending
which will place additional expense
upon the Federal Government. includ
ing the civil service retirement Dill
the proposed reorganization of the
Treasury Department and the Dill 70
increase the salaries Of judges. IL
the reduction in taxes carried in the
Senate bill prevails. Senator Smoot
pointed out, it would be impossible TO
have this legislation without running
the Government far into debt.
Greater Cut Folly
The House scarcely has language
to express itself with regard to the
total reductions in taxes proposed by
the bill as it passed the Senate.
prominent Republican member of the
ways and means committee said last
night. The House feels that the
country approved the bill as it passed
that body, and that the Senate could
well have put it through Just as 1t
was. without amendment. Ii 1t We're
put through in that form 1t would
take the bill out Of the coming cam
paign as an issue. Furthermore, the
Government expenses are likely to
increa Sc from now on. instead OF De
crease, and It would be folly to make
a greater cut IN the revenue than
provided for in the House bill.
There would pe HllIe uiiIlCtitN iH
getting the House to agree to "A CON
ference report which follows closely
the lines of the House bill, with a total
tax reduction of not more than $3.50
900 900 to $3.50 900 900. The fact that
the Senate by its insistence upon a
greater tax reduction can only block
the passage Of the bill and prevent
the tax reduction from becoming ef-
fective is relied upon by House mem
bers to force the Senate to accept
finally the terms of the conference
report, even if it nullifies many of
| the Senate amendments.