Evening star., 1923-11-23
Mellon Tax-Cut Proposal
Hailed by Editors in West

President Coolidge's desire to know
what the west thinks about the tax
reduction plan of Secretary Mellon,
particularly the reduction on the sur
tax, has been answered by the west
ern editors. With few exceptions,
these editors favor the entire reduc-
tion plan. Some, however, favor a
partial reduction and the soldier
bonus.
Discussing at length the disad-
vanta ges of the high surtax. the Nor
folk (Neb) News Gndependent) COM
mends strongly the reduction of the
surtaX ito 2 point at which it will
pay our wealthy investor to sell his
tax-free securities with their low rate
of interest and reinvest in industrial
securities upon which he must pay an
income tax, and when he does this
Uncle Sam will get him for his in
come tax. and part of the burden
will be shifted from the shoulders of
the man who has a moderate income" :"
Loking at the matter from the same
viewpoint and citing the decrease in
the governments revenues from
higher incomes. the Duluth Herald
independently says: shouting for
high surtaxes to soak the rich when
it is plain that these high rates simply
drive large incomes into untaxable
investments, and that lower surtaxes
would bring in more revenue. besides
brin g'ing about the return of capital
to productive industries, is simply
unintelligent. yet voteseekers are
doing il, because they believe that the
owners of the votes they are after
are unable to see through this hole in
ladder. There is no possible
doubt what the people will say. They
are saying it now. so loudly that Com
gress can't help hearing it. Congress-
like Davy Crockett's coon, will come
down."
Likewise, the st. Paul Dispatch (in-
dependent republican, feels that cut
ting the heavy and unjustified surtax
in two will change the current of
large investment from tax-exempt Sc
curities to commercial channels
(which means everything at this time
to our industrial and railway develop
ment. Mr.. Melons program appeals
to all classes, but to no one at the
expense Of another"
Approving the plan so far as it ap-
plies to earned incomes and the re-
mova1 of tax on amusement admis-
dependent democratic), owned by for
mer Senator Hitchcock, however
takes exception to the proposed re-
duction of surtax and inclines to IA
vor the soldiers bonus, saying "the
taxpayers can have their tax reduc-
tion. the soldiers can have their bo-
nus and the government revenues will
still be ample, If only the adminiStra-
tion and it's leaders in Congress will
consent to leave the surtaxes at the
existing rate" The Topeka State Jour
nal independent republican,, however,
believes that the Mellon proposal and
the bonus proposal cannot be made
effective at the same time. because "a
soldier bonus not only will pre-
vent reduction of taxation, but is GER
tain to increase taxes: the cost of a
bonus will not be far from $4,000
public debt to begin with. entirely
aside from the cost of administration
throughout the years, which would be
tremendous"
In answer to the arguments that
the reduction plan does not continue
the Grand Rapids Press independently
reflects that "a moments thought not
to the difficulties and injustices of
this discrimination, which are serious
quences, will convince most thought
full taxpayers that Mr.. Mellon has the
entire nations welfare in mind"
The Press thinks that driving
money out of industry is of no more
help to the poor man than the rich,
and that using the taxes derived
temporarily in this way. in order to
dredge unnecessary channels for vote
getters in the interest of some con-
gressman, or to give money at the
most unpropitious time to ex-service
men who are to be generously cared