Evening star., 1926-11-11
PRESIDENTS TAX
PLAN QUESTIONED
Persons Not as Financially
Fortunate in 1926 as in
1925 Start Inquiries.
BY DAVID LAWRENCE.

Inquiries are beginning 10 come in
rom all parts of the country as to
how the two plans which have been
proposed for a rebate or credit to the
taxpayer will affect those corpora
tons and individuals who MY have
made money in the year 1925 but who
were not as fortunate in the year
I 1925.
In other words, if man paid an
income tax of s. 900 during the year
1925 and met with financial reverses
so that i'm March, 1927, he had no
income tax to pay, the credit of 10 or
IL per cent which it is proposed be
given him would be a credit against
zero. Under President CoolidgeS plan
to refund cash, the taxpayer in ques-
ton would get back q tenth or more,
which would be an actual rebate.
This illustrates only one of a great
number of difficulties that are arising
in connection with the announcement
Of the Administration decision to
return in some way $3.50 .000, 900 of tax
receipts.
May Reopen Whole Problem.
Although the surplus has actually
been used to pay off a portion of the
public debt it has been suggested that
the Government could make rebates
out of current Treasury receipts,
which would mean, of course, an in
creased borrowing in the regular
quarterly financing operations of the
Treasury.
It is beginning to look more and
more as if the rebate plan injected
at this time will compel a reopening
of the whole tax problem. The meet
ing just held here OF corporation
executives asked that the additional
tax recently levied on corporations be
repealed at once. This means that
other interests equally anxious for
relief will want changes made at the
short session of Congress. 1t Will be
difficult to resist the pressure for
revision of the whole revenue law in
90 far as essential rates are con-
cerned
I'D to now the administration has
felt that little could be accomplished
at the short session because 1t auto
matically expires on March a, but
1927 is not an election year and MEM
bers of Congress would have no obJec-
tion to staying on through April or
May Indeed. the insurgents already
are talking of forcing the President
10 call an extra session or to state
publicly that he will do so, or else
there will be filibusters on important
appropriation bills. These tactics
were used effectively on president
Wilson on one occasion and he
Welded to the pressure for an extra
session.
Tax Plan Furnishes Issue.
From political viewpoint, the
Democrats will join with the lnsur-
gents in forcing an extra session pc
cause the Republican majority VIII
he SO slender that it will be possible
10 shoot arrows at the administration
in preparation for the 1928 presiden-
tial campaign Until Mr.. Coolidge
announced his plan for tax rebate.
there was no issue on which an extra
session could be forced.
There will hardly be an excuse
either if Congress should speed up
it's work and revise the tax law In
the months of January and February.
The necessity for speed Will prop
ably not appeal to those who want
to force an extra session. AS far as
justification is concerned. the insur-
gents will insist that they want to
give the taxpayer permanent relief
instead of temporary aid and the
whole thing lends itself so easily to
political manipulation that it is not
at all unlikely that the administration
NAV be compelled to yield to the
ciamor for an extra session, as well
as the pressure for a revision Of many
important sections of the revenue law.
Copyright. 1920