The Birmingham age-herald., 1923-12-02
PRESS ON MELLON PLAN


 leaders tried at once to combat tht program, but few days observation of national sentiment veered their sail! into the wind and they fell into line with the rest of the regatta. The press of the nation was practically unanimous in it's approval, and the great majority of newspapers ex pressed opposition to the soldiers bonus on the ground that it would prevent tax reduction. Later reflec. ton, however, has convinced some that the bonus, calling as it does for an. nual appropriation much less than the estimated surplus, would not inter. fere with the main features of the Mellon program. Even if it did, the friends and supporters of the bonus are in much stronger position than they were, for last year it was gen. erally conceded that the bonus could not be granted without an actual tax increase. It now appears that it could have been and can be.
 The New York Times produces fig ures showing that our taxes have more than doubled since 1914, and argues from that fact that we are a nation oppressed by taxes. Nobody will deny that we are paying more taxes than we like, or than we would have had to pay if it had not been for the war. But most calculations fail to take into account the fact that our national wealth also has almost doubled in the same period, so that we are really pay ing our entire tax out of our increase in wealth, leaving our original capital untouched and retaining besides as a net gain large part of our increment in values. We may have a heavy burden to carry, but we were never more equal to our burdens. The Times, moreover, is in earnest about this business of tax reduction, as wit ness: "The federal part of that bur den it is now within the power of congress considerably to tighten. Some part of that burden weighs on every body, whether he has tax bills to show 1t or not. The quick popular accep- tance of Secretary Mellon's plan for reducing taxation and stimulating bus mess and industry and the national prosperity shows that the people know what is hurting them, even if some politicians have glass eyes and seem to see the thing that is not"
 From a strictly political viewpoint there is much in what the New York Herald says: "In the Mellon plan there is an appealing issue. It af- fleets the pockets and the homes of millions of men and women. And these taxpayers will be quick to pun ish any party, any bloc, any individual that stands between them and the benefits which Mr. Mellon says are theirs if congress will but say the word." Let but that idea take hold of congress and congress will say the word. And congress should say the word, with such reservation, of course, as would protect our sources of reve- nue tor essential and authorized ex- penditures. While opposing additional taxes to pay bonus, the Washington Post calls attention to prevalent ab- surdity with respect to taxes: "The greatest demand for reductions of the income tax comes from agricultural states. The farmers have been told that they are paying excessive taxes and it is true. But their heaviest taxes are state and local, not federal income tax. One senator from Idaho makes striking plea for reduction of the income tax, and declares that the taxpayer will turn on his torturer, and yet the citizens of Idaho paid only $1.14 per capita to the federal gov. ernment while paying s45.42 per capita in state and local taxes in 1922, on an indebtedness of $61,693,. 900, an increase of 337 per cent. ir ten years. This debt was voted by the people of Idaho upon themselves and the federal government had noth. ing to do with it. Whenever the voter: of Idaho desire to quit torturing them selves they can do so." Perhaps many another state is in similar predicament and planes the federal government fol something the people themselves are directly rsponsible for.
 The Houston Post is for reduction Relief is needed now, and should mol be deferred for another year, ant congress could present a no more wei come Christmas gift to the country than tax reduction as proposed by tn, secretary of the treasury. The actua saving of four hundred million dol lars to those who pay income taxe. into the treasury will be but part ol the benefit. In the end, the entire nation will sense the relief" As t, the Democratic attitude the Atlants Journal reNarks: "The larger prin ciple and pArpose advanced by Sec retary MelloA that of reducing taxes