Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-13
TREASURY SEEKING
TAX REVISION PLAN
Officials Say Surplus This
Year May Not Exceed
100000, 900 Mark.

By the Associated Press
Tax revision. one Of the major prob
lens for the new Congress, is being
carefully studied by Treasury ofiicla Is,
but they said today that so many
changing factors would enter into the
equation before Congress meets IN De-
cember that they had not yet formu-
lated any definite program.
Rasing their estimates upon figures
thus far available. these officials do not
expect the Treasury to have this rs
cal wear ANYTHING like the halfbll
on-dolar surplus which it had last
wear, and which was applied to retire
ment of that much of the public debt
Some do not anticipate a surplus IN
excess of 100000, 900.
In this connection, attention is call
ed that much of the surplus OF the
past years has been made up from
back tax payments, liquidation or
loans to the railroads and the sale of
surplus war materials. These sources
Of extra revenue are rapidly drying
IN n is asserted, and the Govern
ment must look almost entirely to cur
rent receipts to meet current expenses.
Revenue and Operation Cost.
Under the revenue laws in force
during the past few years. Federal
income has not kept pace with the
actual cost of Government and the
gulf between the two is expected TO
be widened by the increased costs of
annual governmental operation during
the next few years If Congress meets
the demands for internal improve
ments, naval expansion and farm re-
lief
II the Informal discussions which
have proceeded thus far on the SUD
ieCt of tax revision, SurtaX rates. so
called luxury taxes and the corpora
ton levy have come in for major
part of attention. Some reduction or
the surtax rates may be proposed, al
though these rates were sharply
reduced by the 1925 act. Under that
reduction income taxes actually have
Increased. and it is contended that
with a further reduction more money
will be taken out of frozen" secur-
tiles and put into productive enter
prise, with the result that there VIII
be more taxable income.
There is a division of opinion with
respect to the luxury taxes. with some
holding to the view that all should be
wiped out and others that the tax on
automobiles, club dues and the stamp
levies should be retained
Rates Only One Phase.
Income from admission taxes has
fallen to around SIS, 900. 900. and there
is an apparent increasing sentiment
for their repeal. largely upon the
ground that there is an evasion of the
tax to the detriment of the Treasury,
but with cost to the patrons of amuse-
ment places.
With the corporations generally en-
joying perhaps the greatest prosperity
in many years, the argument has been
advanced that the tax on them should
not be disturbed at this time. This is
predicated upon the theory that even
il the tax rate should be reduced, as
many think it should be. there would
be no lessening of the prices of manu-
featured commodities to the consum-
err, and that consequently only the
corporations would benefit from re-
duction.
Rates are only one phase of the tax
problem. Administrative features of
the law will come in for full share of
attention. as admittedly there are
many inequalities in the existing law
which Congress will undertake to rec
tify on the basis of recommendations
to be made by the joint congressional
tax committee created two years ago.