Evening star., 1927-10-30
VIEWS ON TAX CUTS
remain UNCERTAIN
Two Factions Are Definite in
Stands, but Independent
G. 0. P. Are Doubtful.

By the Associated Press
Three political shadows lowered
over members Of the House ways and
means committee who returned to
Capitol Hill yesterday to prepare a
new tax bill.
Positions to be taken by two of the
factors, the administration Repub-
iicans and the Democrats, already
have been defined Eairly well, but
some uncertainty remains concerning
the views of the third element, the
independent Republican group in the
Senate.
The Trea sury Department, charged
with administration of the nations
fiscal business, has indicated it will
insist that the prospective tax cut be
held we'll under $500. 100000 and in
the drafting of previous tax bills the
views of Treasury officials always
have carried considerable weight with
the committee.
Committee Meets Tomorrow.
Whether Republican leaders in the
House and Senate will be prepared to
support reduction far below the
| $500 900 900 mark remains to be seen,
Dut dil O1 liOSc WIN nave SPohIh Pdb-
licly in recent weeks have indicated
that they would give serious consid-
Grafton to such recommendations as
Secretary Mellon and his assistants
might make. The actual recommends
tons Of the Treasury will not be made
known until the committee meets to-
morrow to begin drafting a measure.
The Democrats have announced
through their spokesman on tax mat
ters, Representative Garner Of Texas,
ranking minority member on the ways
and means committee, that they would
insist upon a reduction of between
S400 100000 and 100000, 900. The
Texan in a recent statement declared
that he was convinced that the con-
dition OF the Treasury would warrant
such a cut.
On the other hand, the Western
Independent Republican Senators, who
hold the balance of power in the
Senate, have intimated that they did
not look with sympathy upon a large
tax reduction at the present time.
Some members of this group believe
that the minimum of reduction would
be advisable on the ground that the
country at the present would benefit
more by further reductions Of the
national debt.
From discussion so far it is apparent
that the administration Republicans
and the Democrats are virtually in
agreement that the corporation levy
and the nuisance or excise taxes
should first receive the benefit of a
reduction. There is wide divergence
of views over how far these rates
should be cut.
Estate Tax Opposed.
While the Treasury is expected to
give its approval to a slash in the
corporation levy, there is some ques-
ton as to whether ii will sanction
the repeal of all the wartime nuis-
ance taxes.
Although the exact details of the
Trea sury program are not known, it
is regarded as probable that the de-
| partment again will seek repeal of
the estate or inheritance tax. Both
Chairman Green of the committee and
Mr.. Garner opposed this recommends
ton at the time the present revenue
law was written and both are against
any reduction in this tax at the pres
ent time.
Considerable interest is manifest at
| the Capitol over what estimates the
Treasury will make tomorrow regard
ing the prospective surplus. The sur
| plus for the last fiscal year approx
| mated S635, 10000 and there is pros.
pect of another large favorable
| margin at the end of the current fiscal
year, but the Treasury has held that
| Il large part of this came from non
recurring items and not through an
/ actual margin of this size between
Government expenses and receipts.
Green Doubts Big Cut.
Chairman Green Of the ways and
means committee expressed doubt if
a tax cut as high as $500, ,000, 900 could
| be effected
What Congress must decide is the
| amount Of the reduction" he said,
| which can he made and leave no
| deficit for the fiscal year 1929 and
ensuing year. Large sums will he
| paid into the Treasury by the rail-
| roads and received from back taxes
during the fiscal year 1928, but these
sums should not be considered in de-
| termining the amount Of tax reduc-
| ton. Little, it any. will be paid by
| the railroads in 1929, and the amount
receivable from back taxes. now de
| creasing, will rapidly decrease after
| the fiscal year of 1928, as the big
cases dating back to the war times
are being settled and the Treasury
Department is becoming nearer cur
rent with its work in auditing the
other cases.
Viewing the situation from this
standpoint. it becomes doubtful Wheth
er the sum Of $500, 900. 900, which
| have heretofore mentioned, can be
reached in tax reduction without Gre
ating deficit"
Mr. Green added that he hoped the
new revenue bill would be ready fol
Congress a few days after it convened
and could be passed by the House be
fore Christmas and the Senate shortly
thereafter so that it would become q
law Sin time to apply to the taxes oi
this year paya4s in 1925"