Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-11-15
LEADERS Of c. D. P.
OPPOSE TAX PLAN
OF ADMINISTRATION
BY DAVID LAWRENCE
Geased Wire Service to The Journal
ri,Ybt

nCan leaders in congress DO not
share Secretary Melons ideas about
reduction of taxes Senator Smoot,
chairman of the finance committee
Of the senate, said today he had not
changed his mind about the unwis-
dom of tax revision at the coming
session of congress. House leaders,
including Chairman Green, Of the
ways and means committee, are rep
resented as believing also that it
would be iEc Little to open up the
tax question this year.
Secretary Melons announcement,
however, carries with the implica-
ton that President Coolidge stands
behind him. Otherwise the presi-
dent VII be in the position of ignor-
ing publicly the statement of policy
OF his secretary Of the treasury.
Some administration leaders think
Mr.. Coolidge will merely refer tc
Secretary Melons proposals in the
forthcoming address to congress but
will not press for tax revision sub
sequently.
There is no doubt that taxes could
be reduced if the administration
wants to avoid paying a bonus to
the eX-service men and if the radi-
Gals in congress did not produce a
stalemate by proposing changes in
the revenue law to which the con-
servatiYe elements would under no
circumstances agree. Already there
is talk from radical quarters about
reimposing the excess profits taxes
and putting up higher than at pres
ent the rate on surfaces for the
wealthy.
MELONS, Position
One Of the awkward phases OF the
situation which drew some comment
| on Capitol Hill is the fact that Sec.
rotary Mellon himself is one Of the
wealtEiest men IN America and
| would benefit by reduction of sur.
taxes.
On the other hand, Mr.. MELONS
philosophy is that unless large
amounts OF capital held by the
wealthy can be put into productive
channels it will be invested in tax
exempt securities and the nations
economic development which depends
always on the unrestricted flow Of
capital to new enterprises would be
retarded.
The Mellon program, however,
will stand Or fall largely on the
bonus issue which is coming up
with more force than ever, because
presidential campaign and another
election of senator's and members of
the house is soon to be held and the
voting power of the ex-service men
is feared by the men now in office
Mr.. Mellon predicates his whole
program on the theory that no bonus
shall be paid to the able-bodied ex-
service men. He contends that the
disabled soldiers are being cared for
at cost of a half billion dollars a
| year and that a bonus added to that
would mean not an expenditure for
one year but for many years to
come.
Mr.. Mellon has put out his tax re.
vision plan against the advice Of the
politicians who insist that a soldier
bonus shall come first and tax re.
auctions be POSTPONED till the ses-
sion of congress following the next
presidential election in November.
1924. In other words they think the
new taxes should take effect during
the year 1925 and be payable in 1926.
Mr.. Mellon doesn't profess to be
a politician but he thinks the Amer
lean people ought to have the ben.
eft of every economy and tax reduc-
ton just as soon as possible. He
wants the new tax reductions to be
effective next January so that they
will be payable in 1925 and so that
business men and others can figure
on a lower tax rate during the year
1924.
Recent statistics from the treas
| ury department would seem to indi
cate that about 6,662,176 persons
and corporations pay income taxes.
| There are about four million ex-serV-
ice men. The service men are Oh
| ganized in such powerful bodies as
| the American Legion. The tax pay.
ers are not organized. Mr.. Mellon
thinks they can be by public opinion
and the press.
OF the four million who might be
entitled to a bonus, he is confident
large numbers would oppose it on
economic grounds, believing that a
few hundred dollars paid now in the
form of bonus would only mean
many times that sum in increased
| taxation for years to come.
| So the battle has begun. The the
| DRY Of conservative leaders in con-
| gress that they can squelch talk Of
tax revision Or even action is not
dependent on their own influence,
however, for the radicals will have
the balance Of power in both houses
Of congress and they will reopen the
tax question anyhow Mr.. Mellon
is trying to anticipate action by the
radicals by putting out his program
J first. President Coolidge will have
to get into the fray sooner or later
as it looks now as if taxation would
be the paramount issue of the pre-
convention campaign if not of the
final campaign itself.
TAX REVISIONS
| SUGGESTED BY MELLON
WASHINGTON, Nov. 12.-Fed-
eral tax revision under a program
applying reductions to the entire
range Of personal incomes and esti.
mated to cut the nations tax bill
next year by $32,000,000 will be
recommended to congress by Secre'
tary Mellon.
In the tax revision, which he sug.
gested be made effective next Janu.
airy 1, Mr.. Mellon recommended
that taxes on earned incomes be re.
duced 25 per cent, and the rate on
normal taxes on income from 4 per
cent and 8 per cent to per cent
and per cent, respectively. He
proposed that the sur tax rates be
reduced by commencing application
at $4,000 instead Of $4,000 and seal
ing them progressively upwards to
rs per cent on incomes Of $780, 900.
Proposed changes in the earned in
come and normal tax rates would
mean loss of revenue, the secretary
estimated, of $197, 100000, the saving
to taxpayers falling largely in the
lower income brackets. The pro-
posed scaling down of the sur tax
rates, he predicted, would in the
long run, mean higher rather than
| lower reNenues from this SOURCE. be-