Evening star., 1927-10-16
PARTIES PREPARE
FOR TAX CUT FIGHT
Administration Leaders Back
Minimum Slash as Demo-
Gratis Eye Surplus.

By the Associated Press.
How big q slice may be cut from
the annual tax bill is a question now
uppe rmost az ddministra tion and con.
greSsional leaders turn their attention
to this MAJ jor problem Of the approach.
ing session of Congress.
With the revenue question involved
in the coming presidential campaign
the issue already is settling along
political lines with three fairly dis.
tinct notions prevailing. both as to the
total amount of reduction and where
the cuts shall be made.
Under pressure from President Cool
idge. administration leaders are ex.
pected to endeavor to hold the maxi
mum reduction within the limits set
by the Treasury, something like
$500, 600. geo.
Democrats View Surplus.
Democrats who are assembling for
the procession meetings of the tax
committees of Congress are measur.
ing the prospective surplus with the
hope that they can present a program
contemplating a much larCer rcti,ic-
ton. Some already have declared for
a cut OF nearly $500 600. 900.
The third element in the equation,
the Western States, aHN rently is little
interested in tax reduction. In their
preliminary legislative conferences
they have expressed a preference for
scaling down of the national debt
rather than of the tax bill, but IL
there is TO be tax revision legislation,
they have very definite ideas as to
where the reduction should be made.
The basis for revenue legislation
will be laid at hearings before the
House wavs and means committee.
beginning the end OF this month. At
those hearings. the Treasury will pre-
sent its\program in detail and spokes-
men for the corporations and others
seeking revisionS will make their
arguments.
Whatever bill is framed will be
without the political importance of
previous measures. because admittedly
there can be little If any further re-
duction in the taxes of the great mass
of the public, which has benefited
materially in each measure passed
since the World War.
As the situation is shaping up now.
the principal fights will reyolve around
the corporation income, the estate or
inheritance, and the remaining war
time nuisance and miscellaneous taxes.
The regular income levies will come
IN for their share of attention. how
ever. with proposals for complete ex-
emption of all incomes below S5 900,
and reduction in the surtax rates
aHectlng incomes between 1000 and
100000.
Despite views Of some Government
tax experts that a period of prosperity
Is not the time for reducing the cor.
70 fAn 80
nCongresS lean toward a substantial
lowering. which has received little at.
tentlon in the enactment of the last
two revenue measures. Reductions in
the present 1914 per cent rates, rang.
ing from per cent to 21a per cent,
have been suggested.
Nuisance Taxes Hit.
AS for nuisance taxes, there seems
TO be a general opinion in Congress
that the levies on theater admissions,
perhaps club dues. the various stamp
taxes on negotiable instruments and
business papers should come off.
There promises to be a real fight.
however, on the proposal to repeal the
automobile passenger car levy, which
was reduced in the last bill from 5 to
per cent. Some leaders favor aboli.
tlon or this tax, but number of high
administration officials insist upon it's
retention in some form, although they
are not unalterably opposed to a fur
ther reduction in the rate.
There will be renewed drive for
repeal Of the inheritance tax and on
this issue party lines are expected to
fade away as they did two years ago,
when Independents of both parties op.
posed the demands of Republican and
Democratic conservatives for abolition
of this tax.