Show INCOME TAXES I Ii i MAY AGAIN BE GUT CUT IS ClAIM Further Reduction of 12 Per Cent Hinted Hint Hint- Hinted Hinted I ed as the Next Step StepI I WASHINGTON May 2 By 1 A. A P. P Unofficial P. estimates by b I treasury ti officials indicate that a aI I 12 13 per cent reduction In income i taxes may be possible as the next step In lifting lilting the federal tax taxI burden I This figure wh while le calculated without intention to commit Secretary Sec See Mellon e to any policy was suggested today on the basis of an incomplete analysis of returns on Income taxes under the present present present pres pres- ent law as as shown In the March larch or OJ first quarterly instalment It would beat bear out previous estimates that another two hundred million cHar doUai total reduction be inde effective on taxes paid in 1926 Present indications are that the treasury treasur will avoid making any definite proposal to the next congress congress congress con con- gress when it is expected the tax tax- question again will be live While Mr lr Mellon l has made no direct statement on the subject most of his advisers favor keeping the treasury treasur out Of the fight they are urging that the treasury inform congress of the state of the finances and point out what is possible thus leaving the whole question of rates for the congressional congressional leaders to decide The first indication that another cut in income taxes was possible was given when the March in instalment instalment instalment in- in exceeded the treasury's estimate made last summer b by about eight million dollars Further Further Fur Fur- ther then evidence that total revenue receipts will vill be larger than originally originally originally nally calculated is given also in receipts from Import tariffs which Just now are about five million dollars above the amount collected up to the same date in 1924 I Miscellaneous receipts a general source of revenue from which it had been expected about would be cut off through the reduction by the last law have not not dropped to that extent and indications are that the decline will only slightly exceed With larger receipts expected from the several sources than had previously been predicted it was apparent to treasury officials that the surplus will befar bear greater during during dur dur- ing this and the next next fiscal year than thon it it had been apparent when the last budget figures were drawn up Some officials favor the application application cation of the bulk of the next tax cut to the middle class of Incomes and those derived from business Their argument was that the sm smaller ller income earners were given Important relief in the last tax revision and that the class which Is maintaining the flow of life lifeblood lifeblood lifeblood blood in industry should be bo treated next Should their views prevail it would mean substantial cuts In Incomes from to perhaps as high as |