The Washington times., 1921-08-06
FIGHT
T0F0LL0VV
HARDING s
COOL REST
Both Sides in Deadlocked Tax
WrangIs Expect Executive
to Settle Policy.
ny International News Service.

BY International News Service.
President Harding is coming home
from his vacation in the cool White
Mountains to find another hot con-
flict in progress between the execu-
tive and legislative branches of the
Government.
Tangle Up to Harding.
It appeared TO be certain today that
only Presidential Intervention can
straighten out the tangle over the 1922
taxes. ard end the dispute between
Congress ana the Treasury Depart
msnt over how much money is neces.
ssry 70 keep the wheels of govern.
mspt turning for another year.
Secretary OF the Treasury Mellon
and his departmental advisers esti.
mate that the Government will need
$4,55o, 100000 and have put up to Con.
sress the Job of providing 1t.
Members of Congress. with an eye
to the coming Congressional elections
on which their political lives depend,
estimate that these figures can bs
trimmed by at least $500, ,o00, 900, per-
haps more. So far they have refused
to figure on a national spending bill
Of moro than 100000. 900.
Both Standing Pat.
And there the deadlock exists. Both
sides are standirs pat and apparently
waiting for sofr word from on high.
The principal difficulty is a differ.
ence in policy between the Treasury
and Congress. The Treasury favors
pay as you enter" policy. with
current bills paid on the spot from
current revenues. Many leaders in
Congress contend that this is unneces-
sary. that 1t Is putting too heavy .
burden on the public this year to
expect the already weary taxpayer
to take up all the wartime slack in
these enormous tax burdens over sew
eral years, and thereby tighten the
load this year.
This view is held by Chairman
Madden, Of the House Appropriations
Committee. and he Ii supported by
other Republican leaders. Madden
cites the $500, 900, 900 due the rail.
roads as one item that need not be
paid In lump this year.
Meanwhile. the controversy already
has provided some, embarrassments.
Senator Borah Republican, Of Idaho.
who successfully brought about the
reduction of the army from 100000
men to 10000 men in the face Of
strong Administration opposition. is
again on the economy warpath. This
time he wants the army still further
reduced to 100000 men, and has in
troduced a resolution to this effect
and given notice that he will fight for
its passage.
The sentiment in Congress for
bringing home the $4,000 American
soldiers on the Rhine, which has been
dormant since the change in Admin
istration. is again being worked up in
view of the demand for economy. This,
too, is likely to provide embarrass-
ments for the Administration In its
foreign policy.
1t is practically certain that the
whole range OF tax problems is going
to be taken TO the White House a
soon as President Harding returns,
and put up to him for solution.
Treasury Drops Interference.
The Treasury experts washed their
hands OF the Tax bill today and Iut
II up to the House Ways and Means
committee where the actual framing
was begun. Leaders were hopeful of
getting IL shaped up within three
weeks.
The committee worked today on
the various provisions of the Tcea-
sury recommendations designed to
simplify the tax regulations no that
the average tax payer can figure
out how much he owes the Govern
ment without the aid of corps
OF attorneys. The intricacies OF the
present law have led to widespread
dissatisfaction on the part OF the
public and have also resulted in
enormous losses TO tho Treasury.
The committee win content itself