Evening star., 1926-11-08
TAX REFUND PLAN
FACES OPPOSITION
Demand for Levy-Reduction
Legislation May Cause At
tack on PROPOSAL.
BY J. RUSSELL YOUNG.

Friends of the President are receiv
ing reports that the Presidents plan
for turning back to the tax payers
the surplus in the Treasury IS going
to meet with more opposition than
was at first anticipated. This op-
position will center, It is believed. in
an effort to effect definite tax re-
duction legislation at the coming ses-
sion
More than one Republican caller at
the White House today expressed the
feeling that the Presidents plan Will
face hard fight before 1t is passed.
Senator McNary. Republican Of Ore.
eon. said that while he considered
the Presidents idea a very popular
one he doubted II 1t was At this time
O. proper step. He made II very plain
that he is not enthusiastic over TINS
form of tax reduction and Indicated
that il will take considerable argu-
nent when the time comes 10 COT.
vince him that it should be tried TINS
year.
Would Use Surplus.
Mr.. McNary believes that II the Gov
ernment is fortunate enough 10 nave
accumulated a $3.50, ,ooo.oou surpius'
which Is forming the basis for me ao-
ministration's rebate and refund plan.
this money should be used either TO
reduce the national debt or make
possible much needed improvements
throu shout the country. such as tue
development of waterways. the bulld'
ing of more good roads and the erec-
ton of more public buildings. Inc
Oregon Senator did not inter tnat ne
is going to insist upon this method OIL
disnosing of the surplus rather than
turning il back to the taxpayers, but
he did say with emphasis that he Will
withhold q commitment to the Presl-
dents plan until he has heard the SUD
tect debated when II is brought pe1ore
the Senate.
Representative Treadway of Massa-
chusetts. a member Of the ways ann
Means Committee of the House, salo
he favored the Presidents plan ana
hoped II would be successful. but ne
donhted If il could be enacted before
the middle of January. Another Re-
publican representative who pre-
ferred not to be identified with the
discussion of the subject at this
time, said he feels very certain that
the administratio ton had a surprise
coming to It when the opposition
lines up to fight his plans after the
convening of Congress.
Representative Madden of Illinois,
chairman of the House Appropria-
tions Committee. familiarly known
as the watch dog" of the Treasury.
said after his conference with the
President today. that tax reduction
was not discussed and that he pre-
ferred to postpone comment upon
the Presidents proposal until he has
had more time to study 1t.
Two Bills Ready.
Mr.. Madden said his talk with the
President was devoted almost exclu-
sivelv to the question of appropria-
tions He reported that his commit
tee already has virtually whipped into
shape the Post Ofice and Treasury ap-
propriation bills, and within week
or so will complete its preparation OF
the Agricultural and Interior bills.
The committee will then take up
the Navy and later the Army bill.
Mr.. Madden said all the supply bills
would be passed by the House by the
Office and Treasury bill. which will
total s2,4O0, 900 900 will he passed be-
fore Christmas.
He stated that the indications are
that the appropria tions for the next
fiscal year would be virtually the same
as for the present year. He said that
the development Of the air service will
be treated literally.
Smoot Is Silent.
Senator Reed Smoot Of Utah. who.
because of his being chairman of the
finance committee Of the Senate. will
be the one to personally direct the
maueuvers of that body to enact the
Presidents tax plan. did not directly
say whether or not he approved the
plan in it's entirety. while at the
White House today He apparently
wants to study the Presidents plan
further before committing himself.
The Utah Senator said, however.
that if the rebate proves not feasible.
no doubt some other plan emhodying
the general principles of the Presi-
dent can be passed during the com
ing session.