The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-12-02
TAX REDUCTION
TO BE ISSUE IN
69TH CONGRESS
Democrats Are Determined IN
Bring About Immediate
Revision of Tax Law
BATTLE LINES DRAWN
Republicans Insist Statute
Should Have Another Year
OF Practical Test

the recovering Of the Goth congress
only four days away, Indications are
rapidly Multiplying that the princi-
pal battle Of the short session will
rage :: bout the issue Of tax rcduc-
ton.
Already the battle lines have been
clearly defined, with the Democrats
de mined to bring about immedi-
ate revision Of the tax law and the
Republican leaders equally deter
mined that nothing of the sort shall
be done until the present statute
has been given at least another year
Of practical testing.
A.: the same time. lines are emery
inr from the confusion of pre- session
talk which will show that the bill
leng drafted by the house ways and
means committee, to dispose of alien
property seized during the war and
adjust American and German claims,
will be the center Of another vigor-
Gus fight.
Draft Proposed
Thus far, the Democrats are the
only group that has formally draft
e. tax reduction proposal aimed at
the impending treasury surplus. 1t
was formulated by Representative
Garner Of Texas and other Demo
cratic members Of the ways and
means committee. after conferences
with Senator Simmons Of North
Carolina, ranking minority member
oi the senate finance committee,
ana is designed to reduce the federal
revenue by $3.50, 100000 Il year.
Chairman Green and other Repub-
lean leaders have taken the position
that revision Of the tax law is in
advisable at this time, agreeing with
the administrations position that its
actual revenue reducing capacity
cannot be determined until it has
been given further test. This
years surplus now estimated at
$500 100000, is not indicative Of the
operation of the law since it includes
considerAt!r revenue which will not
be received next year. The Demo
Gratis, on the other hand, argue that
the surplus will amount to $5OO,OOO,-
600 and that immediate tax revision
II justified.
Tax legislation, meanwhile, has
found no place in the tentative pro-
gram Of major legislation, which
Republican leaders hope to see
enacted, but the alien property bill
IL included in their list and Speaker
Lonrworth has predicted that it will
be disposed Of quickly. The meas
urc. however, already has reused the
opposition Of Senator Borah, Repub-
principle" it would endorse "confis-
cation" Of private property in viola
ton Of one Of the fundamentals on
which the government was founded.
Action Not Expected
In the senate wing Of the capitol
today there we're predictions from
opposing sides that there would be
no tax reduction at the approaching
session.
1T looks like there will be no tax
lc.i.tlation Of any kind at this SEES
aion," Chairman Smoot Of the senate
finance committee said. 1T would
be utterly impossible to undertake
general tax reduction at this time
as it would be mere guess work as
to what revenue will be collected for
this fiscal year and the short ses-
sion does not afford sufficient time
TO properly consider bill. If the
Democrats oppose the presidents
suggestion there won't be any legis-
lation."
Senator Robinson Of Arkansas, the
Democratic leader, said the Demo-
Gratis are ready to support q real
tax reduction measure" but are OPP
posed to the presidents credit pro-
posal because it Constitutes an un-
deserved gratuity to large taxpayers
and violates fundamental principle
of government"
Senator Swanson, Democrat, Vir-
ginia, said that without substantial
Democratic support, the administra-
tons plan would be doomed to de-
feat because the insurgent Republi-
can senate group would stand to a
man apainst them