Evening star., 1927-01-26
TAX CUT FORECAST
FOR NEXT WINTER
Madden Sees Substantial
Reduction in Levy After
Surplus Is Established.

Congress will not reduce taxes at
this session, but next Winter it Will
cut the tax rates sufficiently to in
sure a saving of at least 350,0OO,000
to the American taxpayers, accord
ing to the prediction made today at
the White House by Representative
Martin B. Madden of Illinois, chair
man of the House appropriations
committee.
Mr.. Madden made this optimistic
forecast following a lengthy confer
ence with the President, during
which time they discussed the gem
eral situation in the House respect
ing appropriations.
He said the sentiment of the House
is largely IN favor of applying the
1926 Treasury surplus to the reduc-
ton of the National debt and any ef-
fort to secure legislation to use TINS
huge surplus for any other purpose
such as refunding it to the taxpayers,
as was originally proposed by the
President, will be handily defeated,
Mr.. Madden said.
Substantial Cut Forecast.
However, there is not the slightest
what the SeYentieth Congress will do
when it assemblies next year. He
stated that there is every reason to
believe that the business Of the coun-
try is not going to experience any real
depression in the meantime and that
the revenues will be rolling into the
Treasury in such liberal fashion as
to warrant another very substantial
reduction in the peoples tax burden.
He stated that the Treasury figures
to date indicate that those who will
frame the next revision legislation
will have a Treasury surplus of at
least S450,000.000 or $500.000,000 to
have before them as a working basis
to fix these new rates.
The Illinois Representative is not
sanguine about this tax cut for next
year, but is strongly inclined to think
there will be another reduction follow
ing it closely; perhaps in the very
next year. He said he based his an
ticipation for this second future re-
vision upon his conviction that a sub
stantial lowering of the tax rates next
Winter will undoubtedly serve to in
crease the revenues of the Govern
ment sufficient to pile up another
surplus that would be of sufficient
size to warrant another slash in the
taxes.
1t was pointed out by Mr.. Madden
that there is always the danger of
unexpected raids unon the Treasury,
which, if successful, could easily con
sumo a large part of a surplus, and
because of this possibility the leader
ship in both the House and the Sen
ate must always be on the alert to
check these efforts.
He pointed out that at the present
time several appropriations have been
passed which override the figures of
the budget and which will cut into the
estimated surplus for the last year.
He named the rivers and harbors bill
as an example. He pointed also to
the fight being made by the supporters
Df the big Navy movement to secure
an appropriation for the Navy estab-
lishment as an example of what he
meant by saying that those who are
guarding the Nations money bags
must be ever ready for the unexpected.
Mr.. Madden said also that there
will be a number of emergency meas
ures passed at the present session that
will carry appropriations not figured
on when the estimate of last years
Treasury surplus was made.
The President was told by Mr. Mad
den that the work of the appropria
tions committee has been proceeding
in splendid shape. The only supply
bills to yet be passed are the ones pro-
viding for the State Department, De-
partment of Justice and the Depart
ment of Labor, which is one bill; the
District appropriation bill. and the
legislative appropriation bill. When
these are out of the way his commit
tee will then present the general de-
ficiency bill.