Perth Amboy evening news., 1923-09-13
BY GEORGE H. MANNING
{ Washington Correspondent of the
Perth Alnboy Evening Newsl

7 dsuAfSton correspondent OF the
Perth Ainboy Evening Newsl
WASHINGTON. Sept. 1s--Within
the past week evidences have been
published Of the intense struggle
which will be waged in the next
congress over revision of the tax
laws OF the country.
Representative Martin Madden
chairman of the house appropriation
committee, getting no encourage
ment from Secretary Mellon for his
carefully worked out plan of tax
reduction, has laid his plan before
n PRESIDENT In an EFFORT to get ex-
ecutive support for 1t.
Secretary Mellon. in the mean
time has a committee in the Inter-
nal Revenue Bureau working on a
plan of his own for reduction of
taxes which he will present to con-
gress.
Senator Smoot, who will be chair
man of the senate finance commit
tee, in the incoming congress and
hence in charge of all proposed tax
alton legislation, has declared his
opposition to any proposals for tax
reduction, and has pressed his
views on the President In two con-
ferences,
In support of Senator Smoot. Rep
resentative Green of Iowa, new
chairman of the House ways and
means committee, which has juris-
diction over revenue laws in the
lower chamber, returned to the cap
ito1 a few days ago and announced
his entire lack of sympathy with
any sort of revision of the present
laws.
Meanwhile all along the line Dem
ocrats of more or less influence in
their party councils continue to talk
in a vague and indefinite way about
the iniquities of the existing tax
laws and the necessity for a change.
Turning back to the platform of
the two parties in the 1920 cam
paign. 1t will be recalled that the
Democrats took a stand for imme-
date reductions of taxes in proper
ton to the decline In governmental
expenses: while the Republicans
held out for a more guarded policy,
with a view to the accumulation of
surplus revenue to be used in fund
ing the country's floating debt and
bringing about a gradual return to
a normal stability in the finances
and currency of the nation.
Now, evidently, Representative
Madden has come to the conclusion
that the principal objects of the Re-
publican policy have been attained
and that it is time for Tightening
some of the burden of the nations
taxation. His plan, so far as can be
learned, calls for an automatic re-
duction OF income and profits taxes
in proportion to the surplus of re-
ceipts over expenditures shown in
the treasury at the end of each fiscal
year. the reduction to apply on the
normal eight per cent tax rate. The
object aimed at by Representative
Madden is a lowering of the K OF
persons of small incomes.
Secretary Melons plan, on the
other hand, calls for reductions of
from so to rs per cen on the surtax
rate. the object being to turn into
productive enterprises some of the
many millions now tied up in tax
free securities.
The abolition of tax-free securities
by constitutional amendment, which
failed in the last congress, will again
be recommended by the secretary OF
the treasury, as an additional aid
to the carrying out of his plan.
Representative Madden favors the
Mellon plan, as we'll as his own; Sec
rotary Mellon does not sympathize
with the Madden proposal, but in
tends to- push his own vigorously;
Senator Smoot and Representative
Green are opposed to both, on the
grounds that the revenue is too I'M
certain as yet to warrant any educ
ton in the tax rates, and hat the
present laws should be given a more
thorough trial before any change Is
made.
President Coolidge is expected to
advocate the changes recommended
by Secretary MELONS committee,
and to include some recommended
lions for tax revision in his first
message to congress; but the final
action of congress IN the various
proposals affecting the revenue laws
which are certain to come before 1t
Is extremely problematical.
The proposal to abolish tax-free
securities Is certain to meet with
violent opposition, as 1t did last win
ter, and the mastering of sufficient
strength to pass 1t as an amendment
to the constitution is very doubtful.
Taxation of Farm Loan bonds would
be fought by the agricultural inter-
ests; state and municipal govern
ments everywhere are generally OPP
posed to taxation of their bonds.
Reductions OF taxes by the Mad
den plan will meet with great disap-
prevail on the part of many OF the
old line conservatives of the Repub-