Imperial Valley press., 1929-11-14
BY PAUL r. MALLON
UNITED Press Staff CORRESPONDENT


WASHINGTON, Nov. IA. U.PJ--
The administration recommendation
for a $160000,0o0 tax reduction
will be taken up in congress as soon
as the pending tariff bill is out of
the way and probably will be passed
before the next income tax pay.
ments are due March Is, congress
sional authorities of both parties in
both houses were apparently agreed
today.
A general unanjmity of opinion
that the project should be accepted
and carried out as speedily as possi-
BILE appeared to prevail and house
leaders already were discussing plans
to set the congressional machinery
at work.
There were strong indications
that no serious opposition would be
lodged by Abe Democrats or indie.
pendent Republicans in view of the
statement of Secretary of the Treas
ury Mellon that the treasury could
stand the reduction and also be-
cause of the beneficial effect it was
generally thought the announcement
could have on falling stock prices
and business conditions generally.
All Washington leaders of both
parties have Indicated an uneasi-
ness over the possible effect Of the
falling market Oh business cond;-
tions generally. Melons announce
ment that the President would rec
smmend "A reduction of l per cent
en- corporation and income taxes
thereby relieving the burden on in
dustries as well rs the small tax
payer, was accepted as a solvent
which would materially clear the at
mosphere.
The treasury department state.
ment follows:
"While the final detailed esti-
mates and expenditures for the fis-
cal years 1890 and 1881 have not
been completed, the secretary of
the treasury considers the esti-
mates have reached the point where
tax reduction should be recommend
ed to the congress at the coming
session.
Surplus Indicated
"The indications are that bust.
ness profits, dividends, interest and
wage payments IN 1929 will con
siderably exceed those of the year
1923. Our estimates indicate that
! the government should close both
the fiscal years 1880 and 1881 with
! surplus. Taking all factors into
consideration, the secretary of the
treasury, with the approval of the
President, will recommend tax re-
i duction to the congress. The form
of relief to the taxpayers which the
! treasury's recommendations will
probably take will be / per cent
reduction of the normal tax on the
incomes of individuals and corpora
tioas applicable 70 1929 incomes
and payable in the calendar year
1880. That is to say, on the first
$1,000 of taxable income the rate
will be reduced from ll4 per cent
! to one-half of one per cent; on the
second $4,000, from per cent to
| two per cent AMI on the balance,
| the present D per cent rate will b.
! reduced to per cent. The total re-
duction of taxes 10 be collected dug
ing the calendar year 1880 will
amount, it is estimated, to approxi-
uately $l60, 100000.
"The reduction, it is hoped will
take the form Of joint resolution
of congress, thus permitting prompt
action by both houses by avoiding
a general revision of the revenue
! law.
"Tho proposal has been discussed
with the Republican and Demo
cratic leaders of both houses of
congress, who have tentatively ap.
proved the pro- tosed recommends
ton"
Democrats were taken into the
conference at tie White House be.
! fore the announcement WAS made
from the treasury last night.