Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-09
TAX AND TARIFF
PROBLEMS VEX|NG
TO REPUBLICANS
BY ROBERT r. SMALL
Geased Wire Service to The JournalO
DOWNRIGHT. 1921

BY ROBERT T. SMALL
Ueased Wire Service to The JournalO
Copyright, 1921
WASHINGTON, Aug. S.-An en-
tirely new and troublesome condition
threatens the efforts of the Repub-
lican leaders in the senate to put
through an 'old-time' protective
tariff bill.
The senate finance committee IS
making satisfactory progress in re-
writing the Fordney bill! as it came
from the house Of representatives,
but once the measure reaches the
floor of the upper house of congress,
trouble will begin.
There are a number OF Republican
senators who do not believe a high
tariff wall is necessary at this time,
and the party leaders have heard that
a coalition is about to be formed by
these senators with the Democrats to
prevent the passage of any sort OF
tariff bill at this session of con-
gress Only the stiffest sort of dis
cipline from the White House is
llh6ly " SIl dlS Jul lllC 81 Cue1NASli'
Inasmuch as the tariff bill must
give way to the tax bill when the lat
ter is finished, there is no doubt
that any sort of combined opposition
to the tariff measure can hold 1t up
indefinitely. The tariff bill is due out
of the finance committee by the hrst
of September. The new tax bill
should be out by October 1. All of
which means that while the house
may soon be able to recess for sew
eral months, the senate will be in ses-
sion continuously until the regular
meeting of congress III December
overftakes the extra session which
convened last April.
The tariff problem, however, is not
the measure causing the greatest
mental worry in Washington. AS
they delve into the intricacieS OF the
national tax problem that is before
them, congress leaders are becoming
panic stricken. The prospect that
they may have to. hand the people an
increased tax burden this fall fills
every congressional heart with dis
may.
Harding Determined
President Harding is determined
there shall be d revision of the tax
schedules downward. He has said
so a dozen times, and when he re-
turns to Washington toward the mid
real outing since he entered the
White House he will devote himself
to the fiscal problem, the handling
of which may mean much to the flu
ture success of the Republican party.
There is little indica ton at this
time that the house of representa-
tives will undertake to reach final
solution of the matter. 1t will be
for the senate finance committee, for
such sound old legislative heads as
Penrose, of Pennsylvania, and Smoot,
of Utah, and Watson, of Indiana, and
Curtis, of Kansas, veterans of the
game, to take off their coats along
toward the middle of September and
thresh out the real ways and means
to meet a situation more perplexing
than any which ever confronted a
dominant political party.
To the American people 1t is un-
thinkable that with the war three
years over war taxes shall continue
to bear down upon them. The Re
publican leaders in congress feel they
hold the sacred trust of reducing
these taxes, and yet every time they
ahead, Secretary of the Treasury
Mellon turns up with an array of in
ldisputable figures which send cold.
creepy chills down every congress
sional spinal column.
Fiscal policies which strike the fl
nancial experts S wholly sound and
feasible from their point of view.
have the effect of an exploding bomb
when placed before members of con-
gress who are due to go. before the
people a year from this November
| to give an accounting of their stew
ardship in the national capital. Some
congressman frankly say they appre-
ciate the fact that it is entirely
sound to repeal all excess profit
taxes and that it is wise to reduce
the surtaXes on big in ONES so that
| the money represented by these in
comes shall not go into tax exempt
| securities but, they ask how it will
be possible to explain this to con-
stituents who know nothing of high.
err finance. and Tho figure that eV-
cry apparent relief to men of wealth
means an added burden to those least
able to stand it.
The proposal to increase the sur.
tax on incomes between $4,000 anG
$4,000 is another proposition which
fails to meet with congressional
favor. In the $4,000 to $4,000 in.
come class are included men whc
think and men of influence in every
community. They are men who car
make themselves heard, and if they
are called upon to bear heavier bur
dens than at present, their resulting
political activities will not be popu
lar with the men responsible for i'm
posing the tax.
Inasmuch as some 435 members o.
the house of representatives. viii
have to face the people at the poll.
in November, 1922, and only 3.
senator's will be up for consideration
there is Il majority of about 435 t.
80 at the capitol in favor of lettins
the senate stand the brunt of tn,
new tax bill, whatever it may be.
The senate expects to have thu
| burden thrnct il
has become so unwieldly it is not re
garded as safe to let it take a rea
hand in the framing of importan
Legislation. The house membershi,
as whole must take bills virtual,
as they are presented to them b,
committees. Soon they will receiv,
some sort Of tax bill from the way!
and means committee. They may b.
allowed a week to discuss tie bill
then it will be passed and the hous,
can take long recess. while tn
senate struggles on.