| Show TREASURY HEADS WORKING I ITO TO REDUCE FEDERAL TAXES I If f Plans Are Successful Rate on Smaller In- In Incomes Incomes In Incomes comes Will Be Cut Down One Per Cent r 5 pi JI nAnnc COLI IJ II Special Corre Corre- t tt COP right 1923 1 23 W SH o July 21 The ur tr-ur has begun work which my bring brine about a In federal II H McCoy the th govern govern- m mn nt r I anti other special special- on taxation are engaged encased in go- go BO Ig hg ocr o cr the seh schedules dul s and work work- work work-ini oit it in II dollars and cents the estl- estl estimated esti estimated mated t or of o various changes from tim tle present liw Jl How much the I r revenue venue would be de- de do-cre do cread ed b by the application of pro pro- pro and what If IC 1 any loris appear are aro th C subjects of o their prelim prelim- prelim Irry II ulry ol WOJ I hut hii been be n undertaken Sn from Acting Secre Secre- Secretary Secretary tary ot of rh rhe Trea Treasury ury Gilbert rt ho aho i hois Is taking a personal interest in the thesul cut sul j ct hen Secretary Mellon returns from froni his trip abroad Mr Ir Gilbert tope ropes to e hue ready reddy for forlis forI lis I is ir II pe t on the first results of otho tho th labors l J bors The work oly will be bo continued for tor some ome sometime time lime the tarter arter so that thal tho the treat trea- ur treas-ur ur swill Ie lie able to arrange Io orre correctness whatever questions y m be bf asked d by hy of oC t the e houe i wiS S and meins men corn corn- com e when hen congress con convenes It ItIs ItIs Itis Is as certain here hrc that tax tac revision will be among the fr fir t tl th the ew committee will alli ill take tako up ul for tor It I is understood that thit President was waa wa consulted with Ith refer refer- o no 10 t the work before his do- do dc c lor br Alaska and that the president Ir l 1 In sympathy nith aith 1 t phil i Ii it can be worked out for cutting the tac ai t i rate to the point where revenues will alit ill balance ex- ex expenditures ex expenditures without leasing lea a large Ed Among Amon the possibilities of a ta cut ta cut lie loll a E reduction of oC one per cent In the normal rate of net incomes below bOlow H 4 and a similar redu- redu redu reduction lion tion on incomes Income of more than 4 l 0 The first named rate at pros pres present res- res ent nt Is h 4 per cent and the second rate 8 S per per c cent nt It If the normal rate rats on small Incomes were cut to 3 I per cent there would be a less lessening of government revenues during the yar to the tho extent of about according to estl- estl nates upon 1921 returns It If the normal rate on Incomes of o omon mon mora 4 were cut front from th tha present 8 I per cent to 7 I the le les- les lei in national revenues during the l r r would be b about 80 This estimate is also alo on th 1921 returns return The cut ut In iii both rat rates rales cs therefore would bring about an tin estimated reduction or of In treasury receipts ros reduction Is con con- con considered 1 It connection with the tho con I cur sur- sur surtaxes taxes tae on en large larce incomes Secretary l If has hn pointed out that thae it was dC to reduce surtaxes below the ma mi mum of 60 50 per cent at I In la effect Mr Ir Mellon 1 11 to see ee the tho maximum rate rale nna- nna O I 25 per cent He lie so ad- ad adv ad advised v d congress conr ss when the present tax tac law lav wa was under consideration but discarded the tho dation dation and frd f rd ena enacted ld a 50 10 per cent m A disturbing factor In any tax 1 levision lon scheme is the of enactment of ot a soldier bonus la law Treasury officials ay that in such circumstances taxes would have hate to b be J In- In InCI into in CI Iq l tc to t provide pro l le funds for tor pay pay- payIng pay paying ing log the benus Iso No feasible plan lan nis 1113 Loti Leei eel found to dale date ot of ine Jn ing p t T r bonus and aid tress tress- treasur uri treas-uri ur orrl JI think it unlikely that such uh plan Ilan will nill be found Cound In that CD cc cosi the bonus would hae hale ha e to toI tope tiC I u by the tho proceeds ot or loin 5 J 01 from ordinary s receipts A study of the tho 1921 9 1 Income ta return 1 discloses that thit 92 32 per cent of th the J incomes tem s upon which taxes tales ta era era nal fall under the th nark mark bur hur that the um urn turned Int the Iho rationS treasury treasur by this army C Cf f lura era was less than Less than S 8 per percent cent or of ortre tre tl-e total number o of irs paid 87 II Ir r of ot the tax tat Any plan looking to r lief ury say aay should plate relief relict If ot t the 8 S per pr cent of too tac t alt 01 as welt well as of the uI 2 t I r cent nT |
