Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1927-12-30
Statement By Representative VIM.
A. OldfieId.

Passage Of the tax reduction Bill by the
Senate in substantially the form in which
it was passed by the House was predicted
today by Representative VIM. A. 0ldfield,
Chairman Of the Democratic National Com
gressional Committee, after a conference
with Democratic Senator's Mr.. Oldfield
also remarked that the vote on the tax bill
showed the results of organization and OBJ
served that If Democrats throughout the
country will organize for the 1928 election
as they worked together in the House of
Representatives for fair and just tax
bill. we will win sweeping victory for our
national ticket.
Favorable action by the Senate on the
tax bill in substantially the form in which
1t finally passed the House may be expect
ed" said Mr. 0ld6eld. The bill which we
passed is substantially that urged by the
Democratic leaders in both House and SEN
ate at the last session of Congress. but on
which Republican leaders denied US even
a vote.
The bill applies the graduated tax prin-
ciple TO small corporations whose net in
comes do not exceed $l8, 900 annually and
which. not being Of monopolistic char
acter. cannot pass the tax on to the con-
sumner. The relief given these corporations
will reduce the collections by $24.000.-
900. it is estimated. This is more than
Offset by the affiliated return amendment,
which requires all corporations to make
returns alike. II is estimated this will in
crease the taxes large corporations will pay
by $25,000,000 next year and in few
years by probably as much as $50,O00.-
600. Thus the loss from the lower rates
on small corporations is more than offset
The elimination of the automobile tax will
cause loss to the Treasury OF about $685.
100000 annually, 50 that the net reduc-
tion due to the bill as passed. as compared
with that reported by the Ways and Means
Committee majority. will be $4,000. 900
or total reduction next year Of $264,-
100000
The additional reduction we have made
is less than half the reduction Secretary
Mellon urged on one item alone. the repeal
of the estate tax. which would have lost
about $75.000,0OO. annually to the
Treasury, but which repeal is not included
in the House bill. Mr.. Mellon favored this
repeal because the Government did not
need the money. Surely it can afford the
$32 100000 increase in reduction which
the Democratic amendments provide for.
There are limitations from the White
House, am told. that if the bill is passed
in the Senate in substantially the form
that it passed the House. President Cool
idee may veto it. How he could justify a
veto when we are annually collecting hun.
dreds of millions Of dollars from the tax.
payers more than is needed for govern
ment expenses cannot see. The House
bill is fair and just bill, but will leave
the Government with ample money to pro
vide for flood relief and other much needed
purposes.
in the fight in the House on vital fea
lures of the bill. the Democrats were uniteC
and the Republicans were divided. Nearl!
all the Republican leaders voted to recon
NIT the bill, and when that failed, many o
them actually voted against it. II Demo
Gratis throughout the country will oreaniz
in the 1928 election as they worked to
sother in the House of Representatives TO
fair and just bill, we will win sweepin
victory for our national ticket"