The Bismarck tribune., 1931-09-24
ADMINISTRATION
TO DECIDE soon
ON TAX REVISION
Experts Are Going Over Matter;
Will Report to Hoover in
Few Weeks

Washington, Sept. .24.-(F-Wheth-
er the administration will recommend
tax revision Is expected to be decided
within month or six weeks.
This became evident in high treas
ury quarters Thursday. Progress Is
being made on the study. by the de-
partments economic experts, but the
etage has not been reached when the
final verdict has evidenced itself.
It the decision is that revision will
Ae recommended to congress in De-
cember. the tax experts will have to
draw the plan for submission to the
treasury, the budget bureau and the
white house before the president
could present it to congress.
The administration has sought to
avoid tax increases. Though some
believe revision Of the tax system is
unavoidable, others take the view
that the government could meet its
deficit this year as it did last through
an increase Of the public debt and
delay tax revision for another year.
Treasury experts for several months
have been canvassing possible sources
OF new revenue to replace or supple
ment income taxes, because Of the
tremendous drop In that source Of
revenue which has formed the back
bone Of the governments tax system.
Payments Drop Sharply
Following drop Of $3.50. 100000 in
income tax collections In the last year,
the payments in the first quarter OF
the 1892 fiscal year-which ends Sep
tember 3O-has shown q drop already
of $233, ,O00, 900, or nearly half as much
In quarter Of the year as was shown
in the entire preceding year.
At the close of business on Septem-
ber %, income tax collections for the
fiscal year since July have amount
ed to $305, ,594,578, compared with
$538,3539l4 in the same period Of the
previous year.
For the first "a days Of this month
the collections have amounted to
$259,0l5,112 as compared with $780,
488,19 for the same number Of days
last year.
With the chief source of federal
revenue dropping off at an amazing
rate, it seemed to officials that the
government would have to find some
source to replace the loss At the
close of business September 70 1t had
q deficit of 1854, ,258, ,237, having col
lected from all sources only $549 &c.,
789 this fiscal year and having spent
$9l4,22l ,026.
Income Levy Inadequate
Secretary Mellon and Undersecre-
tary Mills in the past have called at
tention to what they considered the
inadequacy Of the income tax law as
a base of the tax system during q
depression.
They have pointed out that such q
tax produced magnificent returns
during eras Of prosperity and large
business but, said it was too respon-
sive to business reactions to form .
stable base.
While neither has indicated what
kind Of q substitute base for the tax
system he has in mind, each has sug-
gested that system based upon an
excise tax which would provide reg
ular stated flow Of income through
years of prosperity and depression
should be chosen.
Whether the decision Is for or
against soon submitting tax revision
to congress, the government must
raise large amount Of money before
the end Of the calendar year to meet
its operating expenses and the ma
turing public debt.
Before the end Of the year there
will be something more than $780,