Evening star., 1928-03-25
Sum Too High, They Contend,
After Study of March IS
Receipts.
$3.50, 100000 IS NOW
PLANNED BY TREASURY
Flood Relief Added to Appropria'
tions Already Made Given
as Cause.


A S225 100000 tax reduction cannot
be had at this session of Congress if
balanced budget is to be maintained.
in the opinion OF administration tax
experts who have studied the March Is
tax receipts.
Appropriations already made by Con-
gress. they contend, would make such
reduction unsafe and 1923 appro-
priations for food relief, estimated at
$40, 100000, will force a substantial
shaving down of the original figure
recommended by the Treasury.
In view of these disclosures, Treas
ury officials plan to go back before Con-
gress with revised figures that prob
ably will call for a reduction of be-
tween $l8o.000,000 and 5000 100000.
Receipts have come in virtually as esti-
mated by the Treasury, these experts
say. but the congressional appropria-
tions have exceeded the estimates.
But there will be tax reduction at
this session." spokesman said. Just
what it will be depends on what Con-
gresS does" These opinions were ex-
pressed despite the belief of President
Coolidge and members of Congress that
a $225 900. 900 reduction still is possible
II Congress cuts down on future appro-
priationS
Mellon Silent on Amount.
Chairman Smoot of the finance COM
mittee. who will lead the tax fight for
the administration. was doubtful where
the pruning would commence. but
there were indications In the Repub-
lican ranks that restoration of part
of the automobile levy to the House
bill might be one way of holding down
the total reduction to be allowed.
Secretary Mellon conferred with
President Coolidge yesterday and later
said he thought tax reduction would be
possible this year. but he declined to
indicate the extent. Neither would he
say how much revenue had come In
with the first quarter tax returns. nor
how far that income would affect tax
reduction.
The present 3 per cent tax on auto
mobiles yields the Treasury about
$68, 900 900. The house. against the
wishes OF Secretary Mellon and the
President. voted to repeal this. A move
is on foot to restore half of the present
tax--or rate of 4 per cent-to the
bill as one means of meeting the White
House demand
Another suggestion receiving favor
able attention in preliminary considera-
tions Of the bill in the majority ranks
is one TO abolish the House provision
for a graduated tax on smaller in
comes for corporations and to in
crease, perhaps. the corporation levy
of lIla per cent proposed by the House
10 IL per cent. The present corporation
tax is l3i2 per cent.
Simmons for Larger Cut.
Senator Simmons of North Carolina,
ranking Democrat on the finance COM
mittee. Is withholding comment on his
plans for tax relief until final returns
OF the March Is payments are avail
able, but he still Is determined that a
much larger cut than that proposed by
the administration shall be authorized
He feels the House bill goes none too
far In its provisions for total slash
OF $500, ,000.0 and believes Congress
Will be warranted even In going beyond
this II necessary. But whether he will
seek such program is still under study.
The minority leader on revenue legis-
lation so far is without the support of
Republican independents. who would be
necessary to him In a successful con-
test against the Republican majority.
The independents are against any tax
reduction just now.
Senator Simmons is inclined TO sup
port the House move for repeal of the
levy and Is likewise determined TO OPP
pose any moves to restore any part of
the corporation cuts voted by the House
The finance committee will reas-
Semble April 3 TO take up the tax bill.