Evening star., 1927-12-29
MELLON PROPOSES
DELAY IN PASSAGE
OF REVENUE BILL
Secretary Urges Tax Slash
Limit of s225, 900, 900
as Safe Figure.
VIEWS ARE CONTAINED
IN LETTE, TO SMOOT
q. S. Will Be in Better Position
Later to Proceed Toward
Reduction, He Says.

Secretary Of the Treasury Mellon
today advised delay in enactment OF
the revenue bill now before the Sen.
ate finance committee, predicting that
unless the two Houses OF Congress
agree 10 limit tax reduction TO the
figure recommended by the President
10 Congress-s225.0 900 .900-"es,irna,e ted
receipts will not be adequate 10 meet
the estimated expenditures as sub
mitted in the budget" The bill as
passed by the House provides for a
reduction OF approximately S290 600
con.
In making public letter to Senator
Smoot. chairman OF the committee.
the Secretary also declared that later
the Government would be in a better
position TO proceed with a full
knowledge az 10 revenues and
whether they would be adequate TO
meet expenditures.
Sn,oot Asks Questions.
Secretary Mellon also made public
letter from Senator Smoot in which
the Senator outlined his position and
asked the Secretary several questions
as TO the possibility OF postponing tax
legislation until after March Is, the
date for the next income tax pay
ment.
Secretary Mellon said in reply that
only after that date. will we be N
a position TO know with reasonable
definiteness the income for the cal
endar year 1927. on which We may
rely for tax receipts during the first
half OF the fiscal year, 1920
Senator Smoot. explaining the wide
differences IN the proposed tax cut,
asked Secretary Mellon:
Il should like to inquire whether
any additional information has been
secured which would modify the
original estimates, or whether sou
still consider that they are correcr:"
Probable Expenditures.
DO they take into account probable
expenditures called for by new legs
iationS' asked Senator Smoot-
As they appear 70 be based on an
estimate Of the taxable income of COR
porations and individuals for the year
1927. l assume ii would be impossible
TO secure more accurate figures before
the tax returns on income for 1871 are
fiied and the first payment made.
which would be the fifteenth OF March.
1925.
IT more accurate estimates could
be made az that time" continued the
Senator. what would be the effect Of
not passing the hill until after March
Is. Would IL make the airaiulssFa-
ton Of the law mere difficult for the
Government Or materially iaconver-
fence the taxpayer My object IN
making these inquiries is 10 ascertain
al hat eAN Aa
order 30 comply with the requirements
OF the law asked by the Congress.
which requires yearly balancing OF
the budget"
Senator Smoot's letter vas dated
this morning and WAS understood 10
have been written following an ex-
tended conference yesterday between
the Senator and the Secretary O. .ae
Treasury.
Mellon Replies.
Secretary Mellon answered the Sen
a,cr's questions aS follows
In reply. wish 10 state ti,s: n
the budget message which the PrsSl.
dent transmitted 20 CoaSresS. the sur
Plus for the fiscal year 1929 - est
mated at $sSs.S{ sSs. The revenue
bill which WAS adopted by tire AouSe
IseceineSr Is. Will. il IS estimated.
reduce Internal reSenGs receipts by
Sse,e0e,e1e This ~ SIS, ,nn0. .g2e IN
eNceSs cf the estimated surplus ard
Ss,ae0.peo in excess os ,Ae Rsurws ser
by he Treasury as the maximum
possible TAX reduction
The disregard cf orscia, estimates,
and adoption es bill which failed to
proNsde revenue adequate IL nss~s
expenditures rs pssseniei in the
budget. has CREATED new ard serious
situation
Il have consulted tire asrecsor cs
me Badge. AID he Informs sra thar
ne sves ne reason to Charge estimates
~ eNlsndsiaE~s for the 1SSal wear
1922, rontsined ia the rrasrr
me>>SSS
Secretary Mellon pointed out .hs,
assdxes estimates did met ia,issse sx,
aehditurcS that may s>e t<NraSspnSxs hN
hw" !eSsSlasiNn. lnctss<iinS tsSsxSs r<slSsg
return az aGsn property. agrtSustp~ai
FSlses. purchase ~ the SsNSNslleA g-s.
ShKse IN WssaSastess. tncreass M, sA,s
Navy. taeSSaSeS fcr gsaesis. e,ltAsy.rs
sta seohser lam and AsuSrla Shg,aIs
projects
Reviews ESihnStex-
The Ssesvtayy Said he had v~Nsswrs
eStsnisseS ct psVlNtlNe rs,Vvnsss, fc,s
aSsS and MAS satisfied that 4. they
err, tAeN err cn the side at ssAesa,Ssx =
~ tas Sf<S>s Iec<Sie &c vrrsasasios,S
~ tsss AZ cosstrarrd with 1885, SAxs,ss
tau en- 10 pep cens. revenue gg<.sn tAss
SeoEVs we0A aerCeaSs Ap,.s>Nxs,s.ases,r
SSee, eco, ,eee, Mr., Mefson estimated.
DELAY in eaaettnx a tax Y>e<Aasts,,,
eils. the Secretsry e<Atuss<a eng. wpaaa
NtsIa>soo no hA~S te che xaNNaN~r s,.,
saeaavensent'e either Iaens ~ The Cow
esasnent ssNaa An administrative
stsndrrat. ls the eil IN nseyse ksw
s''sr March Is, the SECRETARY said,
s>sN,aeass en tASt date ns~>.sSss,sl>s
weula have ~ Ne made ON the haSss
~ tee tEeS~nt sNsssRle act az tsSS
AdA0SssA~esS S%,Old Ne nsaxa, later.
sae Seye~taVN explained. Shpasa Lt,@,
SF~~s aeestlv te eas the March - nav
fAent " 49,