Imperial Valley press., 1929-12-02
REGULAR
SESSION
OPENED
Congress Gives Tax Re-
ductiOn First Call On
Calendar.
MESSAGE AWAITED
HOOver's Statement Of
Conditions To Be Given
Tomorrow.
MESSAGE
By PAUL r. MALLON
UNITED Press Staff CorreSpondent)

WASHINGTON, Dec. 2. W.A)-A
substantial tax reduction for every
individual and corporate taxpayer
was the first business on crowded
calendars as congress convened to-
day for regular session.
The healthy fiscal condition of
the government was outlined In q
budget message prepared by Presi-
dent Hoover for delivery to both
tie senate and the house as soon as
they are ready to receive it.
Tomorrow Mr.. Hoover officially
will inform the congress by his leg
islative message on "The State of
the Union" that the financial out
.ook is good enough to warrant lift
ing $160,000,000 from the tax bur-
dcns of the people.
Wednesday, his secretary OF
treasury, Andrew w. Mellon, will 60
before the house ways and means
committee to advise how the reduce
.tion should be applied. He will
:ecommend a straight cut of per
cent from everyone's tax levy which
will bring the normal income tax
rates from 5, 3 and 11a per cent
down to 4, and - per cent, and
reduce the corporation rate from
l2 to II per cent.
Congressional leaders have made
plans to handle the matter expedi-
tiously. 1t is generally expected
::he reduction will be made law be-
fore adjournment December 20, for
ine Christmas holidays.
This bold stroke of the admins.
tration is founded upon the conf.
dcnce of Mr.. Hoover and Secretary
Mellon that the business outlook
points toward expansion. There will
%. no diminution in amount of taxes
to be received next year, they say.
Strong tax payments mean profits
are being made by corporations and
individuals, the administration
leaders point out.
Unless they had confidence in
p ospective revenue they would hesi-
tate to recommend tax cut. BY the
I1ove, they also expect $3.50, ,000, ,000
will be turned to productive enter
prise, which otherwise would be alb.
sorbed by the government.
Honor Dead Members
The congressional schedule calls
for introduction of the tax cut reso-
laution in the house today or tomor-
row, and for reading of the budget
measure Wednesday.
Leaders of both houses plan to
adjourn the first day in respect to
the memory of those who have died
recently. Only preliminary routine
business of opening the congress
therefore will be transacted today.
The first order of business in the
senate is the ease of Senator-elect
William S. Ware of Pennsylvania
whose friends spent $785,000 in
primary election three years ago.
BY special order the senate must
take up Tuesday the Norris resolu-
tion proposing to deny Ware a seat
ON the ground that the expenditure
Of such a 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"
The tariff bill, which caused 80
much furore in the special session
which closed 10 days ago, is on the
senate shelf. 1t will be brought up
again when the Ware ease is out of
the way, and win be sidetracked
cnly for tax reduction, the leaders
say. They hope to get the tariff
through the senate by Christmas.
After acting upon tax reduction,
the house is to start work immedi.
ately upon the dozen appropriation
bills.