Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-14
MELONS TAX CUT
WINS APPROVAL OF
CONGRESS LEADERS
Treasury Head Says Pro-
posaI Not Made Because
of Market Situation.

BY the Associated Press.
Congressional leaders spoke quickly
today to voice approval Of the Treasury
proposal for a $160, 0,000, 900 tax cut and
simultaneously Secretary Mellon said
announcement of the contemplated re-
duction had been decided upon a week
ago and was merely coincidence with
the disturbed condition In the stock
market.
The Treasury head said the an
nouncement of the proposed tax cut
was not made yesterday because of the
condition of the market, but because
the figures and estimates had been sent
to the public printer and had been
discussed with members of Congress
and therefore was public property.
Such announcements, he said, always
were given out as soon as possible after
a decision to make such recommended
tionS had been reached.
Decline to Discuss Estimates.
The Treasury today declined to make
public estimates of probable income and
expenditures for the current fiscal year
and for next year. 1t was said the
estimates were in hand, but it was the
policy not to announce them until after
they had been transmitted to Congress
in the Presidents budget message.
Mellon in discussing the situation
said losses in the stock market, which
might tend to reduce income Of those
who had suffered in the market, had
been given thorough consideration and
that it was the decision of Treasury
experts that the continued prosperity
of the country justified tax reduction
at this time.
If the Treasury had not had con-
fldence that the prosperity of the coun-
try would continue the tax reduction
would not have been recommended, Mr..
Mellon added.
Mellon coupled this statement with
an expression that he had the utmost
confidence IN the continued prosperity
in the country and that before the tax
reduction was decided upon all elements
entering into Government income had
been considered thoroughly.
At the Capitol leaders Of both houses
prepared TO move swiftly to draft legis-
lation to carry out the proposed reduc-
ton and today it was their intention
to offer the necessary resolution early
in the December session.
The measure must be introduced first
in the House where, under the ConSti-
tuition, all revenue legislation must orig
irate. The Treasury proposal would
provide for a flat per cent cut In the
normal individual and corporation tax
rate.
Leaders Approve Reduction.
Congressional leaders in charge Of
revenue legislation gave their tentative
approval to the reduction proposal at
conference with Mellon late yesterday.
Speaking for the Senate Democrats,
Senators Simmons of North Carolina
and Harrison of Mississippi announced
that their approval would have to be
tentative, until they had conferred with
colleagues.
These conferences were in progress
today. Simmons is ranking Democrat
and Harrison a member Of the Senate
finance committee, which considers
revenue legislation.
Chairman Smoot of the finance COM
mittee looked with full approval upon
the tax slice. He cautioned, however,
that it should be made to apply only
to the one year, after which 1t would be
possible to determine more accurately
ernment. Then, he said, general
downward revision might be under
taken, II deemed necessary.
Simmons and Harrison both recalled
today their effort two years ago to get
a greater reduction in the corporation
tax than was allowed. They expressed
approval that the Mellon proposition in
cluded their suggestion at that time as
well as a cut in the normal individual
income tax rate.
The tax plan provides the following
reductions:
INDIVIDUAL INCOME RATES.
Present. Proposed.
First $4,000 taxable
NJ