Evening star., 1921-11-29
That so Per Cent Surtax Vote.

i
| The 50 per cent surtax on large in
| comes which the new tax law levies
may be OF far-reaching Importance to
the country-through it the very rich
| may carry q heavier part OF the pub
lie expenses than in the past. or they
may evade the payment of taxes al
/ most entirely by withdrawing money
from active use and investing it in
| tax-exempt securities, according to
| varying opinions expressed by the
press. But the economic aspect Of in
| come surtaxes has been vehemenuy
debated ever since Congress began
| Its revision of the revenue laws. Just
| at present the political significance of
for in spite Of the appeal of the
President and the House leaders is
the outstanding factor in newspaper
discussion.
In the opinion of the Providence
Journal independently there is no
dlsputing Mr.. Harding's conviction
that the prohibitive surtax tends to
divert our available and much-needed
capital from employment In our
every day activities to investment in
tax-free securities; or that 1t 10 max
ing continued diminution' In the
governments receipts from income
taxes. and that It is going to increase
correspondingly." And while the
President was beaten in his effort to
secure . lower rate. the Indianapolis
News Undependent) agrees that he
was undeniably right in his position.
In his desire to effect . compromise
between the House and the Senate
his good nature led him needlessly to
interfere in a free fight" for the New
York World (democratic) thinks his
proper attitude would have been that
of the lady of the frontier: Go 1t.
husband Go it, bear" But the
in its exposition Of the economic fall
lacy on which they were bent" was
poweriess. the Newark News (inde-
pendent) concludes, Ito sway q ma
jority Of the lower house." for "ths
democrats. in their role Of chronic OBJ
structionists, were almost soiidly
lined up for this punitive taxation.
publicans took on the nature of
panic"
This magnificent gesture of pun
ishing wealth and soaking the mil
lionaire' is political cowardice." !"
ree ..sIts or se
more American (republican) explains
the motives Of those who voted
against tho President, they have de-
cided to continue to bid for the ap-
plause OF the proletariat by swatting
the men who make employment for
the very people whom hard times hits
hardest"
But regardless Of the merits Of
the surtax matter" many writer's
agree with the Knoxville sentinel
Independent democratic) that re
publican insurgency in Congress Is
the Boston Herald independent re-
publican), from the action of Con-
gress on the 50 per cent surtax and
''other economic questions" that
partisan solidarity is not what it
and the Senate have lost their hold.
This may not be a sign of progress
it is at any rate development Of
real significance" In the "insur-
gent republican tbte" the Scranton
Times (democratie) also sees "an;
guard is being very badly rocked"
The New orleans Times -Picayune
(independent democratic) "scarcsly
expected" that the Presidents tn:.
fiuence over a Congress- dominated
BY his cMn pa party r. snoud os sssn 81. as
ministration," but 1t predicts that
now that break has been made.
''ths divergence may spread to other
issuss' than taxation, Hayinf slip:
ped the leash once," the Richmond
Timss-Dispatch Independent demo.
cratic) agrees, members OF Congress
'are inclined to venture the same
thing again and again, and therein
is the threat that hangs over Presi-
dent Harding as result OF his de-
feat at the hands Of the House on
the surtax measure" and defeat
which the paper feels suggests a
reputation of his leadership eat a
time when he could least afford any
undermining Of his prestige"
Admittedly, "this 10 the most sting
ing defeat Of the administration"
and the responsibility for 1t, wheth-
er in a spirit of blame or credit, is
laid at the door of the Agricultural
bloc" "This bi-partisan. non.parti-
san comhination 10 me business for
the democrats who are on the out.
side looking In" but the Philadelphia
Public Ledger lindependAntl com.