Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-08-30
REDUCED TAXATION
AND BONUS WEIGH
" ON COOLIDGE MIND
BY DAVID LAWRENCE
Ueased Wire Service to The Journal
NEOnNrioht 1923.


WASHINGTON, Aug. 2S.-Enough
has been said by President Coolidge
in conference with his cabinet and
with members of congress to indi-
of economy in government eXpendi-
lures. He has selected this as his
first major objective. Chairman Mad
den, of the house committee on APP
preparations. after consultation with
Secretary Of the Treasury Mellon,
has given a hint of Mr.. Cool:dge's
second bjective-reduction of taxa
ton, if possible.
While these two things might
seem to be interviewer, there is still
third problem which oversnNdows
them both-the soldier bonus. AL
though nobody has said much about
it publicly, it is a fact that hardly
discussion develops among govern
ment officials about fiscal affairs
that doesn't wind up in the vagaries
Of whether congress will or will not
demand a bonus bill and pass it over
a presidential veto.
Silent on Bonus
The president has not made known
his attitude on the bonus and prob
ably will not do so until he finds
himself compelled to speak. While
governor of Massachusetts, Mr..
Coolidge signed a bonus bill, so IN
principle, at least, he favors it. Thus
the whole matter resolves itself for
him into a question of whether the
government can afford bonus.
That's where the significance Of
Chairman Madden's statement lies.
Mr.. Madden opposed the bonus last
season. He now comes out in favor,
Of a program of reducing taxation:
Having proposed tax reductions
Immediately after talking with the
president and secretary of the
treasury makes it possible to draw
the conclusion that he has the
moral support of the executive IN
his project.
But there can be 10 reduction of
taxation if, at the same time, the
government undertakes added fl
nancial burdens in the form of sol
diers' compensation. Which course,
therefore, should the federal gov
eminent take? Should it continue as
at present and squeeze a bonus oil;
of the revenues now coming in, eS-
pecially when the administration
has in the last two years not only
been able to balance the budget,
but actually show a surplus? Or
should the administration, resist the
bonus advocates and make a drive
for lower taxation?
Party's Big Problem
From a political viewpoint, few
people are able to estimate whlct
would be more effective There are
many more million taxpayers, OF
course, than there are soldiers en-
titled to a bonhs., The support OF
the big business and financial cen
ters of the country would he Civ
en- the Coolidge administration IT,,
at the same time that a bonus was
shelVed, taxes were reduced The
agricultural west is off the political
| reservation, anyhow, and is an wv
certain quantity. but a program If
lower taxes would tend to hold tnS
east solidly behind the Republican
administration-tha one theory by
which the politics of the hour is
being calculated.
Senator SmOOt, chairman of the
| senate finance committee, has sale
he didn't look for a reduction oil
taxation at the next session. BI.
there is no doubt that the western
| insurgents, especially the La Eel.
lette group, will press for tax revi
sion, especially on smaller incomes
and for a raising of the taxes on
| higher incomes.
! If the Wester senators are going
to take the initiative in tax revision,
the regulars who want to keep the
administration lined up with east
ern sentiment would prefer to con-
| troll the situation by offering a pro-
Can the government reduce taxes
and pay a bonus, too? The advo-
Gates of the sales tax think So This
| introduces still another element into
| the controversy as there are many
people in congress who think the
present system of taxation could be
| simplified< by a sales tax and they
are glad of the excuse that the
| bonus situation offers to renew their
advocacy of sales tax.
The announcement Of Chairman
Madden, however, for the present
will have the effect of forcing the
issue as between a bonus and tax
reduction with the administration
watching carefully the trend of pub
lie opinion to see whether the coun
try would rather add to its eXpendi-
lures with a possibility of increased
taxation or keep on for a few years
with its policy of reducing the pub
lie debts and taxes generally.