Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-14

revenues should warrant or reconsider
another plan of temporary reduction.
Representative TilSon of Connecticut,
The Republican floor leader. said any
attempt to increase the reduction be-
yond the per cent program would be
oppoSed by the House leaders OF both
parties, who had agreed upon the re-
duetion.
Representative Garner of Texas, the
Democratic floor leader, said the pro-
gram would help to restore confidence
in the market. The Treasury, he said,
would have an indicated surplus OF
ed the temporary reduction plan was
Q protection to the Treasury in event
of decline in revenue.
The statement by Secretary Mellon
was issued after q series of conferences
with his ranking lieutenantS in the
department and with President Hoover,
The desire of Mr.. Hoover and MIR.
Mellon for tax reduction has been well
known for many months, but in their
own view o determination of the effect
Of many circumstances, upon the Ma
action could be taken.
Although saying that complete esti-
mates OF Governm> mt needs as COM
pared with prospective Government rev.
enueS were not yet available, Mr.. Mel
Ion, in his statement, asserted that the
study of the situation had progressed
to such an extent that a recommended
ton for tax reduction could be made.
"The indications are that business
profits, dividends, interest and wage
payments in 1929 will considerably ex-
coed those of the year 1928" he said.
"Our estimates indicate that the Gov
eminent should close both the fiscal
years of 1890 and 1891 with a surplus.
Taking all factors into consideration,
the Secretary Of the Treasury, with the
approval of the President, viii recon-
mend tax reduction to the Congress"
Since the reduction is effective on
incomes of this year and taxes TO be
collected in the next, with returns to
be filed by March is, 1880, it is hoped
that Congress will avoid all possible
delay in approving the necessary legis-
lation. Mr.. Mellon suggested that
legislation take the form of a Joint
congressional resolution, rather than
OF a tax bill, as the latter would throw
the Federal tax structure open TO a
general revision.
Some speculation was aroused by the
wording of the statement as to
whether President Hoover already had
approved the proposed plan, or was
withholding his appreciation until COM
pletk estimates of Federal needs and
prospective revenues for this and the
next fiscal year have been completed.
In this connection, it was pointed
out that the statement was given to the
press by Undersecretary Ogden Mills
after returning to the Treasury from
a conference with the Chief Executive.
Earlier, Mr.. Hoover had conferred with
Mellon, Mills and Roy A. Young, gov
ernor of the Federal Reserve Board.
The announcement was interpreted
as indicating that the Treasury fore
sees greatly increased governmental
revenues in the next two years, due to
business and industrial prosperity.
Income taxes were the source of more
than half of the Governments total
revenue In the fiscal year ending last
June 30, pouring $2.s3o,7l1, 1872 in the
Treasury.
Indications shortly after Mr.. Hoover
took ONCE were that both he and Sec
rotary Mellon had in view. first of all,
. lesSening Of the tax burden of the
man of moderate income. either
through increasing the personal ex-
emptton in the lower brackets or Is per
cent credit now allowed on earned
income