Last Stage of All

The Tax Reduction Bill lay in the hands of the President. His political advisers in Congress openly advised and expected him to sign. It was believed that Secretary Mellon had submitted a report on the bill simply showing its effects but making no definite recommendations for signing or vetoing it.

To be sure, the President had intimated strongly that no bill except the Mellon plan would be acceptable to him. But with a different bill in his hands and the end of the Congressional session approaching he was forced to choose: the present tax law or the Congressional bill. Which was better? He chose to sign.

In signing it, he issued a statement, as he had done in the case of the Immigration Bill: "The passage of a new revenue bill was required for two reasons, the reduction of taxation and the reform of taxation. The bill as passed provides a certain amount of tax reduction. "It improves some of the features of administration, but it is not only lacking in tax reform, it actually adds some undesirable features to the present law. "As a permanent expression of Governmental fiscal policy this bill contains provisions which, in my opinion, are not only unsatisfactory but are harmful to the future of this country." The immediate result of the bill will be to relieve taxpayers of 25% of the income tax payable this year. This will be refunded without request if full payment has been made. Those paying in quarterly installments may subtract 50% of the amount to be paid on June 15 and 25% of the amount to be paid on each of the two ensuing payments.