Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-05-15
LACK Of HARMONY
IN c. D. P. MAY END
TAX REVISION PLAN
BY DAVID LAWRENCE
(Leased Wire Service to The Journal
downright. 1923.

Copyright, 1921
WASHINGTON, May 12.-Symp-
toms of what President Harding will
be up against in the next congress
are already visible. 1t became
known today that on the inside
there has been considerable discSs-
sion by the president and his asso-
ciates of just what should be done
in the way of tax revision at the
next congress because it is obvious
there is going to be an excess of
revenues.
But every time the subject Is
mentioned there is a shrug of the
shoulders and an expression of puz-
zled uncertainty as to what would
happen to a recommendation for
tax revision If 1t once got into the
claws of the radicals in the next
congress.
The Republican majority in the
house and senate will be slim. But
if the Republican party were har-
monious, any majority, however
small, would be sufficient to express
the will of the party. The trouble
is Mr. Harding hasn't any real ma
iority at all in the senate, and the
LaFollette influence is SO strong
with a certain group in the house
that it may we'll be doubted how
much legislation the administration
could push through that body with
out compromising constantly with
the radical elements.
The desire of the administration
today is to recommend a reduction
in taxes if there is some prospect
Of getting an agreement among
the leaders of the different groups
and factions in congress.
In the absence of such an under
standing, the feeling is that time
would be wasted trying to amend
the existing revenue laws at all.
Burden May Be Shifted
The danger, of course, is that the
radicals will not be satisfied with
the recommendation Of the admin
istra ton, but will wish to go fur
Their in reducing taxes or rather ir
shifting the burden from one class
of taxpayers to the other, particu
larly imposing a heavier burden or
the people and corporations of large
income.
There has even been talk of re
viving the excess profits taxes, but
the administration has no sympathy
with the proposal and probably any
bill with that kind of tax would
be vetoed by the president If it ever
got that far.
1t isn't that the treasury has any
feeling of favoritism for one class
as against another; in fact, the
strongest argument which will be
made for reduction Of the higher
brackets of the surtaX will be that
more income is obtainable by a mod,
crate rate than by a higher rate.
This may not be a pleasing cir
cumstance in a world of attempted
equity, but that's what happens Just
the same. The evasions that can be
practiced to avoid higher surtaxes
are too numerous and too effective
to Agive the government" the money
it 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 flood
of confiscatory proposals which will
make any revision of the tax law
doubtful until the last minute.
No Decision Yet Made
The Harding administration would
like to recommend a reduction of
taxes and would support a simplif1-
cation program, but the decision to
take the initiative in the face of the
radical elements who will be able
to control the legislative situation
has not yet been made.
An uncomfortable phase Of the sit
uation, on the other hand, is the
knowledge that the radicals will
not wait for word from President
Harding, but will start the ball roll
\
nues are in excess of expenditures
is not only widely known, but
enough information has been given
out in the statements 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 radi-
calls will start out with a demand
for tax revision and, so to speak,
steal his thunder. The next session
Of congress is still six months away,
but coming events cast their shad-
ows beforehand. In the interim the
administration will have to make
up it's mind just what strategy to
follow in either conciliating the rad
icals, compromising with them or
fighting them to the last ditch.
1t has become apparent in the
last few days that the first real test
will be the battle over tax revision.