Congressional leaders are preparing to enact swiftly, perhaps by Christmas, the administration's novel one-year $160,000,000 income tax reduction plan. Its adoption is virtually assured because of its apparent unanimous support.
The plan, announced unexpectedly by Mr, Mellon, Secretary of the Treasury, was disclosed as a "composite picture" of. opinions of financial and political leaders, Mr. Hawley, Chairman of the House Ways and Means Committee, said the Treasury.was responsible for the "temporary" reduction idea. Mr. Hawley termed this plan, under which the one per cent. reduction will apply only on incomes received during the calendar year 1929, a "flexible" provision.
Although all previous American tax reductions have been carried out by enacting permanent laws, England usually ges new finances by temporary measures Vimited to a definite period, Mr. Hawley pointed out. He said this new method was valtiable because it would prevent long debate and further legislation of the govern ment revenues if the future should not come up to expenditure needs—in tasse of industrial depression or suddenly enlarged appropriations.
The unanimity of approval with which all congressional leaders received both the general idea of tax reduction, and the particular way of applying it—unprecedented in tax reduction proposals of the past—makes enactment almost a foregone, conclusion, More Reduction Possible Mr. Mellon's announcement did not make clear the temporary or flexible" nature of the plan, but the Under-Secretary, Mr. Ogden Mills, voiced the suggestion that a tax reduction next year is not pre-eluded -by the treasury proposal, This plan, he pointed out, will enable the Treasury to give the taxpayers the benefit of any nonrecurring surpluses—such as come from temporary revenues—in the future.
He asserted that President Hoover who approved Mr. Mellon's tax reduction, would recommend adoption of Mlexible" taxation as a permanent policy, and. that Mr. Mellon in the Treasury's annual report would discuss the sar proposition. The Treasury idea is to have the president and Treasury make annual recommendations to Congress for the rates to be charged in the following year.
Although the Treasury's proposal would apply only to normal dual income taxes—up 0 $20,000 2 year—and corporation Mr. Mills said that it was sible the reduction might be extended to include the individual surtaxes on the larger individual incomes.—United Press.
Washington, Dec. 13.
The Senate voted to-day to displace the tariff discussions with those fon tax reduction. Passage of the tax is therefore assured. It may take place to-morrow.—United Press.
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