Evening star., 1927-10-23
}4OO;ODD,0DO TAX
CUT TO Be SOUGHT,
GARNER PREDICTS
Democratic Finance Leader
Plans Slash Twice as Big
as Treasury Estimate.
HOLDS ADMINISTRATION
FIGURES INACCURATE
Repeal of Nuisance and Excise
Levies and Modification of That
on Corporations Urged.

BY the Associated Press
A total tax reduction of $400 900, 900
or perhaps $500, 900, ,000-almost twice
as much as advocated by the Treas
ury--will be demanded by Represent
ative Garner of Texas, ranking Demo
crat on the House ways and means
committee, which will meet in another
week to draft a revenue bill.
Spokesman of House Democrats on
revenue legislation Mr.. Garner yes
terday laid down the battle lines for
the approaching tax fight which seems
destined to center on how much of
slice can be taken from the annual
tax burden.
Another issue was drawn by the
outspokon Democratic leader when he
served notice that he would not vote
for a bill providing a slash in the cor
poration levy applying on 1927 in.
comes, on which taxes are payable
next year. Such a plan has been ad-
vocated by Chairman Smoot of the
Senate finance committee.
Reiterates 1926 Plan.
"That would just be giving the cor
porations a present which they have
already collected from the people,"
Garner argued.
Mr.. Garner reiterated substantially
the reduction plan he advocated
year ago-a cut in the corpora ton
levy from 131a per cent to IL per cent
and possibly to 10 per cent, repeal of
the remaining nuisance and excise
duties, including those on autOmo-
biles, theater admissions, club dues
and produce, and retention of the es.
tate or inheritance tax.
Some additional relief for smaller
corporations also is under contempla-
tion by the Texas Representative, who
will confer soon with his colleagues
on the ways and means committee.
He is willing to listen to appeals for
revision of the individual income tax
rates, but for the present has no plan
for a change in them.
''The administration" he said. with
the 'me-too' Senators and some men,
bers of the House is harping on the
extra expenses that are to be before
the coming Congress on account OF
the proposed permanent plan for food
control. the Boulder dam project, and
so on. The expenses for the fiscal
year ending June 80. 1929, touching
these new enterprises, will not exceed
$50. 0.000, 900"
AssaiIs Treasury Estimates.
Mr.. Garner reiterated his claim
that the Treasury estimates have
been "lamentably inaccurate" for the
last five years. Calling attention to
the surplus of 100000 900 piled up
in the Treasury last year he said
'it is now apparent that the Treasury
has Systematically underestimated
the surplus, causing the taxpayers to
pay more than necessary.
Commenting on the wishes ex-
pressed at the White House that
Government expenses be kept down
by Congress, Mr.. Garner declared
that 'it should be remembered that
Congress always has appropriated
less money at each session than the
President has requested.
in other words" he added, Con
gress has been more economical with
public funds than any President
since the budget was created with
the requirement that it submit the
estimates to Congress Since the
budget began sending it's estimates
Congress never has appropriated as
much money as the President has
said is necessary"
So far as retirement of the public
debt is concerned. the Texas Repre-.
sentative pointed out that a sinking
fund had been provided to take care
of it and, he added, 1--WE are con-
tinuing to collect more than half
billion dollars a year more than is
necessary to cover the necessities OF
the Government"
In renewing his stand against re-
peal of the estate tax, Mr.. Garner
probably will be forced to again break
with some Senate Democrats on this
issue, but he made it clear that he
had not changed his position.