New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1927-08-12
A PREDICTION DRIVE
TO REDUCE TAXES


The House ways and means COM
mittee has been summoned to meet
during the latter part of October to
prepare a new tax reduction bill. Be
it said that this is the proper time
to give the country a snappy tax
popularity called. Next year will be
largely devoted to politics, and 1t
must mean something tangible to
the grand old party if it can point
with pride to some achievement
along this line. For this reason a tax
cut is regarded as more important
than Mississippi flood legislation or
farm relief.
Chairman Green Of the committee
does not think an extra session of
Congress will be called and that
months consideration OF tax mat
ters will suffice to prepare a bill for
Congress when 1t meets In regular
session In December. Chairman
Smoot OF the Senate finance COM
mittee, however, continues to urge a
special session so as to make sure
the tax reductions are fully enacted
before March Is, 1928, when the
first payments of taxes on incomes
received during the present calendar
year will come due.
Political leaders of the grand old
party seem to be unit in thinking
that the principal reductions should
be given to corporations. The plan
is to reduce their income taxes from
IS - to II per cent, which will
mean loss of $15o,OOO,O0O annually
in governmental revenue. No other
contemplated reduction in taxes will
Sd"oi iie'iL tilal IiuCIl, dlIIlOuSu luc
repeal of special taxes on admis-
sions and club dues, amounting to
s37,000,000, will gain wide popular
approval. Other contemplated reduc-
tons appear to be the reduction of
excise taxes on automobiles from 3
to 1 IL per cent, which will net a
loss of s50,O0O,OOO to the govern
ment, and the reduction of personal
income taxes on incomes between
$4,000 and 100000, which will net
a governmental loss of s63,ooo,OoO.
All of these would bring about a
total tax reduction of 100000, 900
annually. These suggestions are in
conformity with the plan of Senator
Smoot. who has conferred with the
President on several occasions, and
are believed to represent the wishes
of the administration.
Democratic leaders do not agree.
They want greater tax reductions
larger reductions in corporation
taxes and in the middle surtax
brackets: and they speak for the
outright appeal of the automobile,
admissions and dues taxes; also re-
peal of the stamp tax on sales of
produce on exchanges. The Demo-
cratic plan would result in a total
reduction of more than s500,000,0O0.
The fiscal year showed a tax surplus
of ACKNOWLEDGEMENT was more
than was anticipated-and if the
Democrats succeeded in carrying
through their plans it would mean
the practical wiping out of the an
DUAL surplus, which is being devoted
TO the reduction of the govern
mental debt
Important as tax reduction is,
continued reduction of the public
debt likewise is important. The high
or the debt, the higher the annual
interest charges. Money saved in
taxes levied can, if debt reduction is
not continued, merely result in the
payment of interest on the higher
debt, Reduction of the national debt
so far has had a notable effect In
reducing interest payments. During
the last fiscal year, however, such
interest payments still totalled the
large sum of s7SIQ19,5S7; but be
cause of the debt reduction made
possible through the surplus this
year, the interest sum during the
present fiscal year will amount to
some s67,0Oo,OO0 less, or a total of
approximately s72o,Ooo,o0o.
Whatever plan of tax reduction
succeeds in gaining support in Con-
gress-the Republican 100000 600
plan or the Democratic s500,000,QO0
plant is certain that government
SURPRISES in the future will be much
smaller than during recent years.