Evening star., 1927-11-01
S175,00O,OO0 More Than
Mellon Wanted Favored
by Body.
GARNER HITS TREASURY
FIGURE AS INACCURATE
Also for Reduction of Corporation
Levy to II or 10 Per Cent Rath-
er Than Surtax Revision.
BY the Associated Press.

With the recommendation of the
Treasury that tax reduction be held
to $225,000,000 maximum before
them. members of the House ways
and means committee were urged to-
day by the United States Chamber of
Commerce to make tax slash of
about $400, 100000.
James r. MacColl, speaking for the
chamber. said that lit is common
knowledge that in recent years the
actual surplus has greatly exceeded
the estimates"
Almost simultaneous with his ap-
pearance on the witness stand Repre-
sentative Garner of Texas, ranking
Democrat on the committee, issued a
statement assailing the Treasury for
inaccuracy in it's forecast of surpluses
and advocating a reduction Of the cor
poration tax from 1872 per cent to
II or possibly 10 per cent, instead of
II per cent proposed by Secretary Mel.
lon.
The Texan said he believed material
reduction of this tax rather than a
revision of surtaX rates on incomes of
from $4,000 to 100000 was required.
Too Low. Says Simmons.
Secretary Melons estimate was de.
clared to be too low by Senator Sim.
mons. North Carolina, ranking Demo.
crat on the Senate finance committee.
after call on President Coolidge The
Senator said he felt that total tax
reduction could reach $400, 900 900 in.
stead of the s225 900, 900 recommended
by the Treasury.
While he did not differ with Sec.
retary Mellon as to the exact means
OF reducing the taxes. Senator Sim
mons was of the opinion that the
extent of reduction in the various
classes to be affected should be
greater than that proposed by the
Treasury. He recommended abolition
of all the so-called nuisance taxes. a
reduction Of the automobile tax and
tax than suggested by Mr.. Mellon.
He also said that the tobacco growers
were entitled to some reduction of the
tax imposed upon their products.
Would Repeal Inheritance Tax.
Like Secretary Mellon, the Senator
favors a repeal Of the Inheritance tax
and he concurred in the Treasury Sec.
retarys view regarding a reduction
of personal income taxes in the inter
mediary brackets.
Chairman Green OF the ways and
means committee also said that re.
iteration by the Treasury of its
recommendations for repeal of the
estate and inheritance tax had not
altered his previously announced OPP
position to such action, while
number of other committee members
held the view that a reduction higher
than suggested by the Treasury should
be effected.
A wide difference Of views existed
over Mr.. Melons proposal TO reduce
the corporation tax from 1872 per cent
to II per cent, Democratic members
generally taking the position that a
larger cut should be made in this levy.
Party Lines Form.
Considerable comment also was
to retain the excise taxes, particu.
larly that on automobile sales, while
the suggestion for a downward revi.
sion of surtax rates on incomes be-
tween $4,000 and $4,000 evoked
much discussion, in which party lines
crept to the surface.
But little, however, was heard re
garding the other two Treasury rec
concentrations one proposing that
corporations with incomes less than
$4,000 and with not more than 10
directors be permitted to file returns
as partnerships or corporations, at
their option. and that income derived
from American bankers acceptances
hnJ h1v .4raJ I1o, %Iyu of feC,
be exempted from taxation.
The first witness today, James A.
Emery, general counsel for the Ma
tional Association of Manufacturers,
urged that Congress make the corpora.
ton tax the subject of it's ajor re.
duction to remedy a long anding
injustice"
Corporation Cut Urged.
Emery said the manufacturers as
Sociation also desired Congress to rec
ogniZe as Il permanent tax policy that
corporation tax should approximate
the normal individual tax rate. save
in the possible exception of national
emergency.
Shortly after the committee con.
vened Representative Garner issued a
statement declaring he was convinced
that Mr.. Melons statement was an
"unanswerable argument in favor of
a material reduction of the corpora.
ton tax"
THAT tax should be reduced to 10
per cent" he said, but instead of re-
ducing it to that figure the President
suggests reduction to IL per cent.
and to devote $4,000. 900 to d reduc.
ton to those paying taxes in the high.
er surtax brackets, who already have
a tn NJ
corporations in paying taxes. AS be.
tween the two. the reduction should
go to the corporations"