Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1923-11-30
ROOKvILLR. MD.
Democrats Consistent Advocates
OF Tax Reduction-The Record.

An analysis of Secretary Melons tax
revision proposal based upon recent his
tory of fiscal and attempted legislation
shows that it is neither new nor original
The two outstanding features are the
proposed reduction of surtaxes from the
present maximum of so per cent to rs
per cent; secondly. a reduction of rs per
cent in the tax on earned incomes over
unearned incomes.
The first proposal was made in 1921
when Republican Congress attempted
to reduce the higher surtax from IS per
cent to rs per cent. which was defeated
by Democratic and Progressive Republican
votes, retaining the higher surtax at so
per cent.
The second proposal for reduction on
unearned incomes was a Democratic
amendment to the revenue bill, offered
by Senator Harris, Of Georgia. and defeated
on October "a. 1921. in the Senate by a
solid Republican vote.
The history of tax reduction since the
war shows that the only effective equita-
Bile tax reductions that have been made
were made by Democrats; that the only
attempted reductions by Republicans have
been for the sole benefit of the multi
millionaire and profiteerine classes, whose
taxes have been reduced over $500.000,-
600. The attempt Of Republican leeisla-
tors to reduce taxes of this class of tax
payers another half billion dollars was
defeated by Democratic and Progressive
Republican votes in the 9th Congress.
Actual. comprehensive and equitable tax
reduction was inaugurated by a Demo-
cratic Congress Immediately after the war.
In February, 1919, tax revision act, known
as the Revenue Act of 1918, was passed in
which the Democrats effected an estimated
reduction of taxes from $4,000. 100000
for 1918 to $4.000.000.000 for 1914
reduction of So, 000 00,0O0-until further
tax revision could be taken up.
In pursuance of the Democratic policy
OF further tax revision. President Wilson,
then in Paris. convened the Republican
Congress in May. 1919. and submitted a
complete program Of legislative recon-
struction, including a sound policy Of tax
revision and adjustment from a war to a
peace basis. The Democrats pleaded with
the Republicans to eliminate politics and
to consider ii as an economic measure.
Instead Of agreeing to this the Repubh-
cans filibustered against the whole plan
OF reconstruction, including tax revision
and reduction, on the theory that If the
people did not get further tax relief they
would rebel against the Democratic party
in the 1920 election. 1t was not until
November 80. 1921, two years and half
later, that a tax bill was passed, denounced
by its own sponsors as "makeshift."
The Republican tax bill of 1921 repealed
the excess profits taxes relieving the very
big taxpayers of $3.50. 100000; they re-
duced the higher surtaxes from IS per
cent to SO per cent, after failing to reduce
them to rs per cent, and thus relieved the
big taxpayers Of $61. 100000 more. They
defeated by solid vote the Harris amend
ment which would have cut the taxes OF
the very small taxpayers in half, and gave
nothing in return except $500 additional
exemption and small additional amount
for dependent children. They attempted
to relieve those big corporations. 80 per
cent OF whose business is done abroad, of
all taxation, which would have resulted in
beneftins the big taxpayers about $780,
100000 more, but they were defeated in
this by Democratic and Progressive Re-
publican votes.
The whole history of tax legislation will
show that the only tax relief the people
have ever had which was just and equita-
BILE has come from the Democratic party.
and that the only attempt to reduce the
taxes OF the smaller taxpayers has also
come from the Democratic party. which is
additionally the party of low and equitable
taxation-the lowest possible to meet the
needs of the Government honestly and
economically administered.
The history Of tax legislation since the
war contains the answer to the question
OF what is the attitude of the Democratic
party on equitable tax reduction, at every
possible stage.
The largest and most important phase
Of the question of tax reduction is not
contained in Mr.. Melons proposal-that
is reduction in the burdensome back
breaking tariff taxes. amounting to 81.
oOO.OOO.OO0 per annum. So 500, 900, 900
OF which 90 into the pockets OF the
special protected interests. among which
the so-called Mellon interests are the
largest and most conspicuous, including
the Aluminium Company, with an annual
net profit of $l0,o00.OO0 year from 1910
to 1920, and which secured an increased
tariff from the last Republican Congress
estimated to have more than doubled its
net earnings.
The Mellon tax plan is estimated to
make reduction of $3O0,OOO,OOO in
taxation. which is an inconsiderable sum
compared to the $4.000,0O0,OOO of tariff
taxes. only $500.00O.OO0 of which 90
into the public treasury.
Many Democrats hold that the question
Of taxation should be considered as a
whole. and that tax reduction program
should embrace both internal and customs
taxes.
1t is pointed out that no measure for
farm relief can be of much effect without
a reduction of the exorbitant taxes the
farmer pays for nearly every thing he is
compelled to buy.