The Covington leader. (Covington, Tenn.) 18??-current, 1921-08-18

Washington, b. G., August IT,
The Republican big-wigs nave got
ten together with the president in a
conference at the White House, and
it Is evident that the storm Of dis
approval over Secretary Melons
proposal to tax all automobiles and
bank checks and TO increase postage
has had its effect. The effect is
/ good as far as it goes. MELONS pro-
posal would have absolutely shifted
the burden Of taxation from the big
rich to the average taxpayer, despite
the presidents promise to''lift, not
shift, the burden"
The latest understanding among
the Republican leaders will result Id
lifting Of the burden to the ex-
tent of $720,000y000. An examination
Of the agreement reached at the
White House conference shows that
about soc, 100000 Of this burden IS
to be lifted from the shoulders of
the rich, the great corporations, and
those rich enough or spendthrift
enough to buy such clothing as calls
for the luxury tax, and from those
who buy railroad and Pullman
tickets Most De the last mentioned
taxes have been paid by the rich,
the well-to-do and firms employing
travelling statesmen. An examination
of the list shows not more than
$20,000,000 Of the relief is taken
from the backs Of the farmers.
Asmaller business men, mechanics,
laborers, etc., and Of those none yet
relief excepting those who patronize
soda fountains or who drink car
donated refreshments. Thus we
find that SO far as the average citi-
zen of modest income is concerned
the burden lifted will amount To
about 20 cents per head for each
man, woman and child in the coun-
try.
The Associated Press is authority
for the statement that the White
House agreement is to reduce the
transportation taxes by one-half.
The income tax on the largest in-
comes from 100000 per year up-
ward is to be repealed entirely, and |
for fear this favor might MT NJ
fully appreciated by those best able
60 contribute to a campaign fund II
IS to be retroactive. In other words.
i Is TO be set back to last January.
The clothing luxury tax Is also 10
come Oft. It is a tax on woman's
hat costing more than SIS; stockings
costing above so; socks above SI
mems hats and shirts above $751; on
tennis racquets, golf sticks. billiard
balls and skis Notwithstanding
me tact that the great corporations
ave already set aside The money tol
loay the excess profits taxes for the
lrst half Of this year, the entire :
a, AK Is to be repealed from January.
inns IS not tax on reasonable
.,arnings, but on their earnings above
per cent. net, after great ade-
1reciatlon' has been allowed for.
me corporations, in selling their
wares, have already made The nuh-
lc pay this tax. Now It * IL he
emitted, not to the public, but To
~ CORPORATIONS which have been
it since last January
ms foots up S450,O00000. Repeal
/ the big fellows income tavas
us their burden to the tune IF
9OOOOOOO more. Secretary MAJ.
L. viii personally receive great raj
FOR the man who has small in-
ONE there is no relief except ST tba
oaa fountain. If he lives ii the
0untry he gets no relief unless II
E the few pennies he pays on i hill
lading on a box, q bic BOUGHT for
reeding purposes on d piece If
sfm machinery. On the other hand
le most prosperous portion IF INK
aople--those whose incomes mn
'cm $4,000 to s100,OOO-are ~
rye their taxes cut more thar
le-half from last January and then
y again next January to one-fourfb
what they paid last year For tbe
reat majority Of those who nav IN
me taxes those falling within I'LL
lotion. - -
Inc above is the substance Of The
mite House agreement. Congress-
ay alter it somewhat. -
AprNrArxvsrv :, . y.-~w--