The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-04-03

| Reduction in tax on wines-los
$930,000.
Paints Gloomy Picture
This program would result in ,
total cut Of $201, 115,OOO. But ,
more gloomy picture was painted o,
the condition that larger expsndi
lures will be necessary in the mex
fiscal year because OF flood contro
legislation which already hal
passed the senate by unanimous
vote. If a $30,000,000 appropriation
for this is necessary next year, Mr.
Mellon said, the total tax cut would
have to be limited to $182, 000, 900.
Under these circumstances hi
would restrict the provisions Of thu
bill't to reductions Of the corporation
tax and the rates on the surtaxej
applying on intermediate incomes;
repeal of the estate tax and cerea
beverage levy and reduction Of thu
wine tax.
Both programs would require com.
plete overhauling Of the house bill
which took no cognizance Of previ.
Gus treasury recommendation FOL
repeal Of the estate tax and reduc.
ton Of the intermediate surta1
rates.
They would wipe out the house
proposal for graduated scale Of
rates on corporations with incomes
OF $4,000 or less and also would
prevent any cut in the present 1O
per cent tax on club dues.
Tax Receipts Larger
Instead Of a decrease in income
tax receipts, Mr.. Mellon, on the basis
OF first quarter returns this year,
estimated that in both this year and
next these collections would be $5,-
100000 more than originally esti-
mated. Similarly, he revised previ-
Gus estimates to calculate on $40,-
100000 more next year in back tax
collections.
But an increase Of $s5,ooo,oo0 in
prospective expenditures for next
year is where the trouble comes. the
secretary explaind. The increase is
accounted for by additional appro-
priations for the veterans bureau,
navy and war departments, postal
deficiency and an enlarged public
Buildings program.
He estimated the surplus for this
fiscal year, ending June 80, at $780,
100000 and for the next year $2l2,.
100000, as compared with estimates
Of $454, 600, 900 and $274, 0OO, 900, re-
spectively, made last October. On
the basis Of the estimated receipts
at that time, q cut of 1926, 0OO, 900
was recommended to the house last
fall.
One Offsets the Other
While estimates on receipts for
next year were revised to calculate
decreases Of $4,000, 900 in customs
collections and $685. 900 in mis-
cellaneous internal revenue. these
were offset by prospective increases
in income tax and ba:k tax receipts.
Income tax receipts for March
this year amounted to $510,850, 900
compared with $511, 400 ,342 4 year
ago, indicating no apparent change
IN collections from this source for
this year.
Last year ended with a surplus
Of more than 5000, OOO, 900 and the
drop in the estimated surplus for
this year is accounted for largely
by one item, the appropriation Of
$6O, DOC, 900 required by the recently
enacted bill authorizing settlements
OF American and German war
claims.
In urging restoration Of the pres
ent automobile levy Of three per
cent, Mr.. Mellon declared 'sthe in.
sistent demand for repeal Of this
tax does not come from the automo-
bile purchasers but from the manu-.
facturers and dealers, who have or
ganized an intensive propaganda.
and OF necessity do not look st our
tax problem ~ > whole, but con-
centrate their attention on the one
tax which they believe affects
their own interest"
Repeal Not Justified
TAX revision on the basis Of
meeting tho demands of special in.
terest," he said, Inevitably leads
to serious malad justments Of the
burdens. AZ Z matter Of principle.
it is difficult to justify the repeal
OF this tax. Levied ct . low rate.
it imposes no particular hardships.
yet by reason Of the broad base On
which it rests il produces substan-
tial revenue. The cost Of our fed.
eral government 10 already borne 70
. very large extent indeed, when
We consider the size Of our popule-
tion. by the comparatively small
number that pay direct taxes. AL