Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-16
BIC INCREASE SEEN
IN INCOME TAXES
Returns as of March ID Are
$127, 0O0,O 900 Ahead of
Previous Fiscal Year.

With income tax returns for this
fiscal year more than $127 ,O00.0Oo
ahead OF last year, as or March IA,
expectations today not only pointed
toward an increase in the quarterly
payments due March is beyond the
original estimates, but brighter pros
poets for tax reduction at the forth
coming session of Congress.
Treasury officials were reticent as
they have been for months about dis
cussing the exact prospects for tax
reduction. especially in view OF the
withdrawal by the administration OF
proposal to refund some taxes this
calendar year.
But the impression was general in
government circles that the present
revenue law Is now proving itself
a producer of income In such SUD
stantial volume that the administra-
ton now will probably proceed toward
developing a definite program Tor tax
reduction. The House ways and means
committee will meet next November
prior to the opening of Congress In
December, to consider the matter OF
tax reduction, and of course will call
upon Secretary of the Treasury Mellon
for his opinion.
$500, 100000 Figure Set.
The payments on income tax due
March is. which have been dribbling
in ever since the first Of this calendar
wear. are now expected to exceed by
substantial figure the revised estimate
of $500, 900 900. The Treasury has been
conservative as a rule in making us
estimates Of income from this source,
and some observers arc looking Tor
the returns. which will not be an
nounced officially for perhaps a week,
to be far beyond 100000. 900.
Treasury officials are grained gen,
orally at the success which attendeo
the huge transactions revoiVins
around March Is. totaling paiioIs ot
dollars. Secretary Mellon last nlshl
issued a. formal statement announcing
that more than $1,000, 100000 OF the
second Liberty loan AN per cent
bonds. or more than one-third or the
total second ANS outstanding, nao
been presented for conversion INTO
fiveyear 3a per cent Treasury notes.
The offer will be kept open until the
close of business next Tuesday Elk
change of the second Libertys for the
new issue at a lower rate Will erect
a very substantial saving In interest,"
to the Government and the taxpayer:
The Treasury expects to call ali OF
the second LiDerlyS GNoNchio0A
Large Increases Noted.
Indications both in Washington ana
+hrnnohn,,t the country this year
nointed 10 both earlier and larger re-
t,1rns on income taxes due March 10.
The amount of income taxes PAID THIS
month for the country at large was
s50.945.s57.61 up to March IA, as com
pared to only $29.s71 ,4l2.1S for the
same month last year; while the totai
paid up to March IA, In the present
fiscal year, scared to ", lS4 $50 ,soo.o4
as compared to $sS6,sSS. aoI.eS curing
the corresponding period of the fiscal
year 1925.
Some tax reduction during the next
session of Congress had been predicted
with assurance, but the revenue law
had been performing at such volume
that President Coolidge proposed
months ago that some kind of refund
might be made to taxpayers beginning
with the payment due yesterday.
Secretary Mellon drafted a plan
which was submitted to Congress. but
the Treasury, which all along had been
conservative on the matter, appeared
e-ratified when 1t was finally decided
after conferences between leaders on
Capitol Hill and Treasury experts,
that the proposal should die natural
death in committee. 1t was never
reported out. The reason for holding
hack on tax reduction or refunds at
that time was criticized by the Demo
Gratis as a political move on the part
Of the Republicans, who were charged
with wishing to make capital out of
a tax reduction just before an cleo
ton in 1928.
merits continued to insist that the real
reason for holding off was that the
new revenue law had not had time
enough to prove itself as a producer
Of income for the Federal Govern
ment, and that more time should
elapse before plans for a general tax
reduction should be laid.