Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-21
TAX BATTLE LOOMS
IN NEXT CONGRESS
Question Seems Likely to
Have Echo in 1923 Presi-
Dental Campaign.
BY the Associated Press.

Il
| touching the pocketbooks Of million!
of Americans, is looming as one o.
re outstanding subjects that will con
mt the new Congress, the Seven
tieth, when il convenes early mex
December
Viewed in the half light that nearly
nine months prospective casts, the
question already shows earmarks OF
developing into a political issue that
approaching 1928 presidential cam
paign.
The forecast by Secretary Mellon of
Treasury surplus slightly in excess
Of $780, 900 900 for the current fiscal
year and the subsequent indication
by President Coolidge that he believes
this would justify reduction in rev.
enue rates. unless some unforeseen
contingency should arise, have been
developments closely observed by
members Of both House and Senate
still remaining at the Capitol.
Democrats Deliver Thrust.
| Already the Democrats, through
their spokesman, Representative Old
| field. Arkansas, chairman OF the
minority congressional campaign COM
mittee, have taken a thrust al the
Republican position on tax reduction.
estimated that American consumers
would pay 100000 in living costs
this year that would have been un-
necessary IL the Democratic taX-re-
vie.on plan had been adopted at the
last session.
This announcement Is looked upon
as the forerunner of more lengthy
and vociferous utterances that are
expected next November when the
House ways and means committee
assemblies about six weeks ahead of
the converting date of Congress to
take up the writing of new
revenue bill.
AS yet, however the Democrats
have given no indication whether
they will wor7 in cooperation with
the Republicans in the drafting OF
the measure or formulate a separate
bill. In 1926 the minority agreed
with the party in power on bill
that was described by both political
camps as non-partisan, and last
Winter a number of Democratic
spokesman sought to obtain similar
non-partisan consideration of the
sS35 900 900 Democratic reduction plan
which was pigeonholed in committee
by House Republicans.
Republicans Going Ahead.
Whatever the minority does, Re-
publican leaders already have indi
Gated they are going ahead with
new revenue measure. Some believe
the Democrats will wait and see how
far the majority party proposes to
ease the tax burden and the class OF
taxpayers to be benefited. Should the
plan meet with Democratic approval,
there are indications that the mi
nority will give it active support and
devote time to accusing the Repuhli- |
cans with having delayed tax reduc-
ton until the eve of presidential |
election.
This accusation frequently was
made during the last session, Re- |
publicans countering with the state !
ment that it would be unwise to at
tempt any reduction until after June |
30, which marks the end of the first !
year of operation of the present !
revenue law.
Coupled with the Oldfield statement |
was one from the Democratic national |
committee, which asserted that ap- |
preparations by the last Congress were |
nearly four times as great as in 1916 |
under the Wilson administration, and !
then asked:
What about this Coolidge econ |
omy so industriously asserted and re-
asserted Dy OVeTlNSS anu eCHOeu ana |
re-echoed by underlings?"
Figures Called Double.
while nobody should expect ap.
preparations to be no greater now
than they were before the World
War;" the national committee state.
ment added, appropriations are still
double what they were in 1915, after
deducting appropriations for tax re-
funds, prohibition enforcement. CO.
operative road building and forest re,
serve roads. items which appeared
since the 1916 budget"
The committee asserted that the
nine years which have elapsed since
the armistice would appear sufficient
time to get back near a state of nor
malcy."
Estimating a surplus this year OF
more than 100000 900 from income
tax payments, Chairman Oidfeld said
President Coolidge and Republican
leaders in the Senate now favor a tax
revision plan almost identical with
the bill introduced by Democratic
members Of the House ways and
means committee.