New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-09-13
congress TO Fight
over TAX Matters.
Next Session viii See Spirited
Contests About Revenue
NJ GEORGE II, MANNING


the country.
Representative Martin Madden
chairman OF the house appropriation
committee. getting no encouragement
from Secretary Mellon for his care,
fully worked out plan OF tax reduc.
ton. has laid his plan before the
president in an effort 10 get executive
support for II.
Secretary Mellon. In the meantime,
has a committee In the internal rev.
enue bureau working on plan OF his
own for reduction OF taxes which he
will present 10 congress.
Senator smoot. who will be chair
man OF the senate inance COMMITTEES
In the incoming congress and hence
In charge OF all proposed taxation leg.
islation. has declared his opposition
to any proposals for tax reduction.
and has pressed his views on the
president In two conferences.
In support OF Senator Smoot Rep
resentative Green OF Iowa, new chair
man of the house ways and means
committee. which has Jurisdiction
over revenue laws In the lower cham
Der. returned TO the capital Il few
days ago and announced his entire
lack of sympathy with any sort OF
revision OF the present laws.
Meanwhile all along the line demo-
Gratis 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 campaign. II
will be recalled that the democrats
took stand for immediate reductions
Of taxes In proportion to the decline
In governmental expenses: while the
republicans held out for more
guarded policy, with a view to the
accumulation of surplus revenue to
be used in funding the country's float
ing debt and bringing about a grad
ual 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 reduction of in
come and profits taxes in proportion
to the surplus of receipts over ex-
penditures shown in the treasury at
the end of each fiscal year, the reduc-
ton to apply on the normal eight per
cent tax rate. The object aimed at
by Representative Madden is a low
ering of the taxes of persons of small
incomes.
Melons Plan
Secretary MELONS plan, on the 9TH
n hand, calls for reductions of from
80 to 25 per cent on the surtax rate,
he object being to turn into produc-
i've enterprises some of the many
Millions now tied up in tax-free Sc
,urities.
The abolition of tax-free securities
~ constitutional amendment, which
allied in the last congress, will again
De recommended by the secretary of
he treasury, as an additional aid to
he carrying out of his PLAN
Representative Madden favors the
Mellon plan; as well as his own; Sec
'etary Mellon does not sympathize
With the Madden proposal but in
ends to push his own vigorously;
senator Smoot and Representative
Green are opposed to both, on the
grounds that the revenue is too UNI
certain as yet to warrant any reduc-
ion in the tax rates, and that the
resent laws should be given a more |
borough trial before any change is |
made.
Coolidge's Stand
President Coolidge is expected to |
ldvocate the changes recommended
~ Secretary MELONS committee, and |
o include some recommendation for /
ak revision in his first message to |
congress; but the final action of con- |
;ress on the various proposals affect |
ng the revenue laws which are GER
ain to come before it is extremely |
The proposal to abolish tax-free |
ecurities is certain to meet with vio-
ent opposition, as 1t did last winter, |
nd the mastering of sufficient
u ShSti W pdoo ~ all dllleIul1ltHlL
o the constitution is very doubtful.
'axation of farm loan bonds would be
ought by the agricultural interests;
tate and municipal governments
verywhere are generally opposed to
axation of their bonds
Reduction of taxes by the Madden
Ian will meet with great disapprov-
] on the part of many of the old line
of the republican party,
nut might be able to muster consid-
rable support from the ranks of the
emocrats and part,of the progressive
epubicans. Secretary MELONS plan,
n the other hand, for reducing the
urtax rate on large incomes. would
G the target for vicious onslaughts
y many of the democrats as well as
" the radical element of the major
y party. as it will be on superficial
open to the charge of be-
ng class legislation for the benefit of
he wealthy.
Either plan would have hard sled
ing in committee on both sides of
he capitol, in view of the attitude OF
he two chairmen, which would or
inarily be sufficient TO prevent the
ppearance of a bill on the floor. But
18th the very small margins the re-
ublicans will have on committees in
he next congress, chairmen will fire.
uently have difficulty in sitting bills
'hich they do not personally favor:
nd a recommendation for revision of
ne tax laws by the president would in
u probability result in some kind of
i'll being reported.