Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-15
EN J. 4. Ol.EARY.

A THOUGH it seems virtual,
~ certain now that the Senate
II will defer action on the IA,
4 i reduction hill until after the
first installments for this
year become due on March Is. definite
assurance has Just been given by
Chairman Smoot Of the Senate
finance committee that he will favor
making the law retroactive. So tina
refunds could be made on the March
payments.
Questioned few days ago by
Democratic Senators as 10 why it
would not affect payment Of taxes Ia
DELAY action. Senator Smoot replied
1t will affect the theaters. perhaps,
and few others paying an excise
tax hat that is all. They collect the
amount Of the tax imposed now from
their patrons. II the bill passes after
the 18th Of March. whatever it may
provide by way Of reduction in taxes
for the year 1925 can be refunded if
paid by the taxpayer.
Refund To BE Given.
''lf he pays the whole tax on March
Is. which many do where it is in q
small amount. then whatever reduc'
ton is made will he refunded 10 him.
II he pays the quarterly payment
that is assessed against him under
the existing law on March l3-and
there is To change in the law until
that time-he can deduct from the
second payment on June Il whatever
he is entitled TO deduct by reason ~
the reductions which Congress al TINS
session may provide.
SO. the taxpayers will lose moth.
trr and the Government itself VIII
be absolutely safe and sure Of having
sufficient money 10 meet all its re-
ouirements. both the ordinary re.
cuirements and the special ones that
ere bound 10 Ne created at this session
Of Congress,
This course was followed on a pre-
vious occasi senator Smoot said,
and led 10 no trouble.
The reference by senator Smoot TO
the Special requirements that may he
improved by this Congress is the fac
tor which caused Republican leaders
ir the Senate 10 take steps TO put the
tax hill of for action later N the
session
Urged Delay.
After the House had passed the rev
enue hill with provisions for total
reduction in taxes of s1S9.1-n. 200. as
against the linni, of sos. o0o. 900 recon-
n1ended and urged by the Treasury
Department. Senator Smoot began to
d. some figuring as TO how much the
present Congress might draw out Of
the Treasury in the form If appropri'
etons and in the form Of authorize.
tions for future expenditures.
: The chairman Of the Senate finance
Committee SAYS he found that if all
OF the projects for which bills are
now pending in the House and SEN
ate involving appropriations should
become law they would aggregate
S9-36n. GOO, Doe. While this total sum
would be made available over A period
If To 10 years. and while it is ex-
tremeiy unlikely that all pending
projects will be enacted AT this time
Senator Sn1oot feels. nevertheless.
that the number OF legislative propo-
sails neceSsitatinc an outlay of funds
IS sufficiently large To make Ii un-
" 80 10 fix the amount of tax reiuc
tion without knowing two things more
definitely.
First. now many of these meas
UroS calling for Government funds
ell bee authorized and the probable
amount ri the authprizat tons. sec.
c13. a@w much revenue will he col.
tecief on this years income tax pay
naenis
Senator Smoot points out that bv
March -, or within 10 days after the
taxpayers file their returns. he