Evening star., 1923-05-12
Radical Situation in Next
Session Menaces Prospect
of Recommendation.
REPUBLICAN MAJORITY
SLIM IN BOTH HOUSES
Revision Discussed as Desirable in
View of Probable Excess
of Revenues.
BY DAVID LAWRENCE

symptoms OF what President Hard
ing Will be up against in the nex-
Congress are already visible. 1t be-
came known today that on the inside
'here mas been considerable discus
sion by the President and his asso-
ciates of just what should be done
IN the way Of tax revision at tbe
next Congress- because It is obvioue
there Is going 70 be an excess n
revenues. But every time the sub
Ject is mentioned there is a shrr-
OF the shoulders and an exnressiop
Of puzzled uncertainty as 10 wbar
would happen to recommendation
lot tax revision if it once got into
the claws Of the radicals in the next
Congress.
The republican majority in tha
House and Senate will be slim. Ru.
II the republican party were harmoni-
Gus any majority, however small
OF the party. The trouble is Mr.. Hard
ing hasn't any real majority at an
IN the Senate. and the La Toilette in
Huence is SO strong with a certain
sro9p IN the House that il may well
De doubted how much legislation Tho
adminlstration could push through
that body without compromising co,
stantiy with the radical elements
Unanimity Is Desired.
The desire Of the administration TO-
day IS to recommend a reduction il.
taxes If there is some prospect q,
getting an agreement among The
leaders Of the different groups ard
factions in Congress. In the absence
Of such an understanding. the feeling
is that time would be wasted irving
to amend the existing revenue laws a,
all.
The danger, of course. is that the
radicals will not be satisfied WIN
the recommendations Of the admin
lStratfon, but VIII wish to go further
IN reducing taxes, or rather In shift
ing the burden from one class or
! tax payers to the other. particularly
| imposing heavier burden or the
people and corporations of large in
come. There has even been talk Of
: revising the excess profits taxes. but
the administration has no sympathy
with the proposal and probably anv
bin with that kind Of a tax would
he vetoed by the President if il ever
got that far. 1t isn't that the
treasury has any feeling Of favor
itlsm for one class as against another;
III ldCt, tIle strongest argument w hiCil
VIII be made for the reduction of the
higher brackets of the surtax will be
that more income is cbtainable hy 4
moderate rate than by A higher rate
rms may not be a pleasing Circum-
stance In a world of attempted equity.
put that's what happens just the
same.
The evasions that can be practlced
to avoid higher SurtaXeS are too rli-
merous and too effective to give the
government the money Il feels should
be forthcoming from persons OF large
income. The radical. however has not
been willing TO look at matters from
that practical standpoint. and the
next Congress will witness a food oF
confiscatory proposals. which Will
make any revision of the tax law
doubtful until the last minute.
Initiative Not Decided.
The Harding administration would
like to recommend a reduction cr
taxes and would support simplifica
tion program, but the decision to take
the initiative in the face OF the rad
cal elements who Will be able 10 cor
troll the Legislative situation has not
Yet been made. An uncomfortab, .
phase Of the situation. on the Other
hand. is the knowledge that the radi-
calls will not wait for word from
President Harding, but will start the
bail rolling themselves.
The fact that revenues are in eN-
cess of expenditures is not only
widely known. but enough informa-
tion has been given out in the state
ments from the Treasury Department
to afford the radicals a background.
and they will not hesitate to take
the initiative.
Indeed the political peril which
Mr.. Harding runs is that the radicals
will start out with Il demand for tax
revision. and so to speak. steal his
thunder. The next session of Con
gress is still six months away but
coming events cast their shadows be
forehand. In the interim the admin
istratfon will have TO make up its
mind just what strategy to follow in
either conciliating the radicals, COM
promising with them or fighting them
to the last ditch. It has become ap-
parent in the last few days that the
first real test will be the battle over
tax revision.
Copyright, 1921
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