The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-12-02
MOVE TOCUT
TAX AS BOTH
HOUSES Open
Session of list Congress
Receives Resolution
for Huge Slash.
ROAD CLEAR FOR ACTION
Senate Expects to Effect
Reduction for Coming
March Payments.
ROAD CLEAR FOR ACTION
BY PAUL r. MALLON
United Press Staff Correspondent

WASHINGTON, Dec. "A reSo-
luton proposing $160,O00,000 tax re-
duction was dropped into the house
bill hopper as the first legislation
TO be offered when the seventy first
congress convened in its first regu-
lar long session today.
Chairman Hawley Of the house
ways and means committee, who
proposed the legislation in behalf
Of the administration, announced
completion of a program which
would make possible its adoption by
the house Thursday.
In the simplest terms, the resolu-
ton proposes a 1 per cent reduction
upon all classes Of taxpayers, i1ldi-
vidualS and corporations.
The normal tax on individuals,
estates and trusts would be reduced
from 5, 3 and IL per cent to 4, 2
and one-half of l per cent respec-
lively. The tax upon corporations
and insurance companies would be
cut from II to II per cent.
Effective Jan. 1
The resolution provides that the
reduction be effective Jan. l, 1929,
which makes it applicable to earn
ings of this year, payments for which
are to be made beginning next
March IS
While the house and the senate
we're going through the brief, formal
routine of organizing their sessions
for business, the tax reduction
resolution was being referred to
HawIeys committee for considera-
ton. A hearing will be held Wednes-
day by Under Secretary of the
Treasury Mills and the resolution
will be reported to the house Thurs
day, Hawley said.
The group which controls the
House, led by Speaker Longworth
and Republican Floor Leader Tilson,
has made arrangements to take up
the resolution Thursday for limited
debate and they expect the legisla-
ton will be on its way to the senate
Thursday night.
Preparations already are being
made to receive it in the senate and
adopt it there before the Christmas
hc 'idays. The cumbersome senate
machinery makes the same speed as
the house almost impossible, but
there is a general unanimity OF
opinion among Republicans and
Democrats that the legislation will
be enacted speedily because of its
encouraging effect on the general
business situation.
The administration will swing
its full force behind the resolution
within the next fey days.
The tax cut move was the out
standing event Of the convening of
Mr.. Hoover's congress.
Leaders Call Roll
AT noon, in accordance with the
Constitution, President Curtis
and Speaker Nicholas Longworth,
respectively called both houses to
order. Announcements were made
that the long session was convened
and the roll was ordered to be
called to ascertain officially if there
was a quorum present.
The session was not attended
fully. The thin coating of ice On
the pavementS outside made haz-
ardouS by continuous rain, kept
many of the elder statesmen in
doors, while other realizing no
business was to be transacted the
opening day, remained away.
The usual resolutions were adopt
ed. giving official notice that con-
greSS was in session and ready for
business. Committees were ap-
pointed by the house and senate to
notify tae President personally. The
senate session lasted only seven
minutes.
The first order of business Tues
day in the senate is the case of
Senator Elect william S. Ware of
Pennsylvania, whose friends spent
$7S5, 900 in a primary election three
years ago. BY special order, the SEN
ate must take up Tuesday the Norris
resolution proposing to deny Ware a
seat on the ground that the expen-
diture of such large sum of money
is contrary to sound public policy,
harmful to the dignity and honor of
the senate, dangerous to the per-
petuity of free government, and
together with charges of corruption
and fraud makes Ware unfit for his
seat.