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Show SIOT DEFENDS MELLi'S PLAN UTAH SOLON ADVISES AGAINST FURTHER APPROPRIATION FOR REVENUE BILL DEBATE Predicts Business Stimulation If Congress Will Approve Measure Reducing Burden of Surtax Washington, Opening the debate In the senate on the revenue bill. Chairman Smoot of the finance committee com-mittee defended the Mellon income tax rates and warned against further authorization by congress of special appropriations, "lest tax reduction be impossible " The measure as reported by the finance eonrnittee, Mr. Smoot declared, de-clared, made the "fullest tax reduc. tion justifiable in view ot the estimated esti-mated surplus." Bills calling for the expenditure of $3,143,000,170, be pointed out, are pending before congress con-gress in addition to the soldier bonus measure approved by both houses, for which the outlay next year has been estimated at $135,000,000. "Therefore," Mr. Smoot said, "authorization "au-thorization by congress of the expenditure expen-diture of any considerable portion of this amount may wipe out the surplus and make tax reduction impossible." Turning to the income tax schedule. about which the main controversy on the bill will center, the committee chairman declared the reductions in surtaxes recommended by Secretary Mellon "will stimulate business, encourage en-courage investments in productive enterprises, en-terprises, and in the long run increase the revenues from the taxes on the larger incomes." In placing the Mellon income rates in the bill, finance committee Republicans Repub-licans rejected the Longworth compromise com-promise schedule, adopted by a vote of Republicans in the house. This schedule called for smaller reduction? of the surtaxes than the Mellon plan and greater cuts in the normal rates. Senate Democrats have proposed a substitute schedule calling for a cut in the present surtax rates along the lines of the Longworth compromise and for normal rates similar to those adopted by the house This plan is expected ex-pected to win the support of some Republican insurgents. In recommending the reduction of the surtax rates, Mr. Smoot declared, the committee followed the advice of practically every authority, irrespective irrespec-tive of party affiliations, who has studied the question. "Their reduction," he continued, "has been recommended by Presidents Wilson, Harding and Coolidge. The recommendations of the last three secretaries of the treasury Secretary Glass. Secretary Houston and Secretary Secre-tary Mellin have been to the same effect with respect to the high surtaxes." sur-taxes." Discussing other provisions of the bill, Mr. Smoot directed attention particularly par-ticularly to the corporation and es. tate taxes. The committee measure, he asserted, "is designed to interfere as little as possible with the business progress and industrial development of the country." |
