Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-14
APPROVAL
OF TAX CUT IS SEEN
House Path Believed Smooth,
as Garner and HaWIey
Favor Slash.
BY G. GOULD LINCOLN.

BY q. GOULD LINGOLNs
The legislative path Of the Federal
income tax reduction resolution, which
is to be recommended to Congress by
President Hoover, when the regular ses-
sion opens December 2, today appeared
smooth, particularly so far as the House
Is concerned.
Chairman Hawley of the House ways
and means committee and Represents
tive Garner of Texas. ranking Demo-
cratic member of that committee and
leader of his party in the House, both
announced intention of supporting the
resolution.
IT. realize" said Mr.. Garner, "that
there may be advantage to the Repub-
lican party in the campaign next year
from the passage of tax reduction legts-
lation at this time. But look at the
proposal from the point Of view Of the
good Of the country and shall support
1t. There is danger to the whole eco
| nomic structure from the conditions
which have existed in the stock market.
Even though business crash might aid
in placing the Democratic party in
power, the price would be too great to
, pay for party success"
Sees Cut az StabiIizer.
Mr.. Garner indicated that he believed
the proposed tax reduction might aid
materially in stabilizing conditions in
the country He said he believed 1t to
be his patriotic duty to support 1t.
Chairman Hawley said he would In
troduce joint resolution for the pro-
posed tax reduction Immediately after
the opening Of the regular session Of
Congress. The country, he said, would
| approve reduction.
He said he believed that the Joint
resolution would be put through the
House with the support OF the Demo-
Gratis as well as Of the Republicans.
He added that he did not look for long
debate on the proposed tax reduction
| In the House or for any amendment Of
| the administration proposal, which
| would lop / per cent of the normal
| Federal income tax on taxable incomes
OF individuals and corporations.
Garner Would Favor Speed.
Mr. Garner also indicated that he
would agree to procedure in the House
which would eliminate amendments and
| thus speed the resolution on its way.
Under the Constitution the resolution
must originate in the House and 60
| from there to the Senate for action.
| Mr.. Hawley pointed out that the joint
resolution would provide for q tax re-
J duction covering one calendar year on
| the part of the taxpayers and part OF
| two fiscal years on the part Of the Gov.
! eminent. He estimated that 1t would
] reduce the amount of the Governments
| receipts from taxation about $65,000,-
900 In one fiscal year, and sal, O00, 900
| in the second, making total reduction
| to the taxpayers of $3.50, 200, 600.
1.-THE proposed resolution will not
really be an amendment to the tax
| laws" said Mr.. Hawley. "It will bring
| IN an entirely new principle, however,
when 1t comes to dealing with taxation.
The basic tax law will remain and the
old rates will be charged in the ensuing
years unless Congress should take fur.
| Their action to cut the tax rates. Under
| this plan, however, the Government.
| through congressional action. will be
able to make tax adjustments from year
to year to meet existing needs"
Senator Smoot of Utah. chairman Of
the Senate finance COMMITTEES, which
must deai with the proposed tax legis-
| lation, expressed his approval OF the
plan today. Senator Simmons Of North
| Carolina. ranking Democratic member
OF the finance committee, announced,
| tentatively. his intention also Of sup-
| porting the proposed reduction.
He said that he had agreed at the
| Treasury Department yesterday to sup
1
| the administration with the UNDER
standing that he first would discuss
| the matter with his Democratic coli
| leagues and be guided by the result Of
| that discussion. Senator Harrison OF
| Mississippi and other Democratic menu
Der of the finance committee, who also
was called to the Treasury Department
yesterday. took the same position as
Senator Simmons.
Borah FavOrs Reduction.
Senator Borah Of idaho. a leader of
| the Republican Progressive group In the
| tariff fight said that naturally he
favored tax reduction, but that he had
not studied the proposal of the admin
istratien vet and therefore was unahIe
| to express a definite opinion. Senator
| Norris of Nebraska. another Of the Pro-
gressives, indicated that he too favored
| tax reduction, but he added that he
also was in favor of paying OF the
public debt growing out of the World
War as rapidly as possible.
1t was recalled today that the Demo-
Gratis, when tax reduction legislation
was up two years ago, favored reducing
| the tax rate on corporations to IL per
cent, which now is proposed by the
administration. At that time the
Republican Progressives did not stand
| with the Democrats in this matter,
believing that the public debt should De
reduced as rapidly as possible at
| time when the corporations of the
country were making large returns.
| The PROPOSAL of the administration
materially would reduce the normal In
come tax rates, which effect particular
~ the small tax payers OF the country
and at the same time would grant
| further relief to the corporations. The
opinion prevailed at the Capitol today
that the plan would be generally
popular throughout the country and
that the legislation would be forth
coming.
May Get Senate Right-of-Way.
IF the House puts through Joint
resolution for tax reduction in accord
ance with the administration recon-
mendations promptly and 1t Is sent to
the Senate before that body completes
consideration of the tariff bill, the tax
| reduction resolution may be given the
right-of-way in the Senate, it was
indicated.
Chairman Hawley of the House ways
and means committee said that his
committee probably would call before
it representatives of the Treasury De-
partment to give them the facts and
figures on which the proposed tax re-
duction was based. He said he did not
believe that extensive hearings would
be necessary or that 1t would be neces-
sary to hear other than Treasury ON
cials. -,
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Experiments In starting airplanes and
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