Perth Amboy evening news., 1923-11-27
DEMOCRATS MAY NOT
ASSIST TAX RATE CUT PLAN
CONTINUED from page y

Nevertheless, among leading DEM
ocrats, there is a notable reluctance
to make any clear statement of their
attitude towards the Mellon plan
They are well stocked with numer-
Gus reasons why it would be prema-
ture at this time to commit them
selves, and why it will probably be
several weeks after the measure Is
submitted to congress in the form
of a bill before the Democratic party
position can be defined.
Primarily, they say, it is necessary
to have the proposal in its definite
legal form, with every detail cover
ed, before they can decide on its
merits. Then of course there will
be long hearings and debates on the
bill in committee, which may result
in material changes in it's provisions.
With no constructive measur of
their own drawn up, and apparently
no efforts being made toward any,
the democrats are marking time un-
til the Mellon proposal, or some
other, is brought up for action.
Then, if certain features of h
scheme are distasteful to them, they
will do what they can to amend them
to accord with their w ideas. If
any considerable body of the major
ity party is not disposed to support
the measure. the Democrats will un-
doubleday be able to obtain large
concessions in the way of amend
ments in exchanges for their support.
The probable conflict between the
tax reduction and the bonus is the
greatest source of worry to the
sponsors of the Mellon plan. So far
as is known, one of the members of
either branch of congress who sup
ported the former bill which was We
toed by President Harding have
changed their position: and a major
ity of the new members made their
campaigns as supporters of the
bonus.
Secretary Mellon has stated that
the passage of a bonus bill will
mean that it will be impossible to
carry out its tax cut. If this be
true, the prospects for his measure
seem scant. On the other hand, the
proposal of Senator Smoot and
others to have a bonus measure to
be paid for a sales tax or similar
means would not, it is believed, SER
iously affect any proposed reduc-
ton in the income tax. Further
| IIlOIGs II IL bCllONCd III al hheiA
ters that Secretary Mellon erred in
his statement. 1t is pointed out that
the bonus measure which was We
toed by President Harding would
have cost less than 500. 000, 900 a
! year; when the government reven-
ues are now showing a surplus of
some $500 600, 600 annually over ex-
penses. In addition to which there
is the interest on the British debt
which is expected to continue to be
paid without any hitch.
Therefore say the advancers of
these points, what is to prevent a
bonus bill, identical to the old one,
being passed, and in addition a low
ering of 5000, 10000 per year in
taxes?
The fundamental objection that is
expected to be raised by the Demo-
Gratis to the Mellon plan is that 1t is
too easy on the large fortunes in that
it contemplates a considerable reduc-
ton in the surtax rate. True, it al
so proposes a reduction in the nor
NAL rate on small incomes, and the
adjustment of the so-called nu-
isance taxes, on theatre, etc, which
win be a relief to the small salaried
men; but the Democratic Idea is that
the burden of the small wage-earner
should be relieved ever more, and
shifted in larger proportion to the
larger incomes. There will, in all
probability be a considerable senti-
ment in favor of an actual increase
in the surtax rate.
In view of these sentiments in the
Democratic ranks, and the corre-
spending attitude on the part of
some of the Republican insurgents.
it is easy to see that the Democrats
will be able to command no small
consideration from the administra-
ton leaders, in the event of Secretary
MELONS program being taken up by
the President. The Republican ma
jority in the lower branch of the in
coming congress is only a scant fif-
teen, and there are fully that many
= unruly and intractable spirits in the
Republican ranks who are not at all
disposed to adopt whatever program
is put forward by the administrative
leaders.
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