New Britain herald., 1929-09-24
Further Reduction of Income Tax Will Be Recommended By Treasury
 To Take Effect In March of 193O
Income fer Present Fiscal Year Exceeds Expectations and Congress Will Be Asked to Slash
 Rates fer Fifth Time

Washington. Sept 24.-tPl-A sub stantial reduction in taxes, favored by President Hoover. will be recom- mondcd to the regular sessions Of congress next December by the treasury to become effective next March 1 }. Just what form the reduc- ton will take has not been deter mined.
 It was learned today at the treasury that the governments fi- nancial condition in prospect for the coming years is regarded as "arranting a slash in taxes. and. with this in view, experts will start work within a week to determine how much of cut can be made and how it will be distributed.
 Tho financial officials who have watched the government revenue thls year, which at the close of business September 20 exceeded the collections for the first two and q half months of the last fiscal year by @llS.936,4So. pointed to continued prosperity and large income tax col Ioctons as the base upon which the tax reduction would be made.
 Since July 1. the total government income has amounted to S921.237.- ,o6, while the income tax collections for the year 1928 have totallcd. up to September 20, approximately S1,- Soo.O00,000, an increase over the same period of the previous year of approximately $271, 1,0O0,o0o. In ad- dition, the treasury expects to col lcct approximately $500,O0 GOO in- come tax when the December pay mcntS are made.
 Big Slash Predicted
 While not predicting that the prospective tax cut to be proposod In December would be of the $500. oOo,0 variety, officials said it would he large, as present indications are mat the government will end the fiscal year June 30 with a surplus of more than S200, ,000, 900 as compared with s1S4,o00, ,00o last year.
 The income payments. which changed q predicted government detlcit into a surplus last year. arc counted on to continue high when the returns for this calendar year are received next March. Last March. the income tax receipts amounted to SGo1 1863. .SQ4. The June payments totalcd $555, 5OS and the Sep 1cmber payments up 10 September 20 have aggregated S491,G2S.G27, with ten days yet to be reported.
 Treasury officials in proposing tax reductions for many years figured mat the government must have a margin of at least $1O0.00O, 900 be- tween income and expenditures. This opinion has been changed in re- cent years. however, and officials have expressed the belief that a smaller margin was safe.
 The tax reduction proposal will be Influenced to some extent by appro- nrlaIons to be made by congress but officials deem it unlikely that these appropriations will have serious effect
 reduction in the tax on earned incomes is regarded as likely 10 be one of the principal proposals of the program. The treasury has not vet committed itself upon that phase. but Secretary Mellon in the past has said he was in sympathy with lower ed rates on earned income,
 The extent of the proposed tax reduction cannot be definitely de- termined by the treasury until eX- pcrts have studied the corporation returns for the third quarter for 192S, which will be received in Octo- Der. Only after these returns are in can fair prediction be made of tax receipts next year on the assumption that the present business prosperity will continue.
 Tax reductions since 1921 have al already cut approximately S1.- S26,0o0,000 off the tax bill of the nation. These reductions were made IT the revenue acts Of 1921-S663.- "0O.000; 1o24-S509. .000.O GOO; 1926 S422.00O.0 .000; 192S-$222, 100000.
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