Evening star., 1923-12-26
Politics at Large
nv n. o. MEssENGEn

foiitics Is bound to creep into the
copsideration of plans for reduction
OF federal taxation, as Is shown by
the current statements of the demo-
cratic and republican national COM
mittees, and by the utterances of
prominent men in Congress. AT the
/ same time. there are indications of
! bipartisan agreement upon some
features Of the pending administra-
tion bill. There is Senator Copeland,
OF New York, for instance. who favors
(; the Mellon plan In full. with the ad-
tdition Of bonus at the same time.
although he does not explain how
II is1to be provided for While taxes
are reduced: Then there. ~ Senator
Summons, the ranking democrat on
the senate finance comm.tlee, who
says that taxes must be slashed to
q greater degree tnan Secretary Mel
Ion purposes. representative Garner
or the ways and means committee
! also has plan for reducing taxes.
y ~
The democratic and republicans ma
tionai committees are at this time
engaged in a wordy warfare over
Representative Gamers statement
| about taxation and the Mellon bill.
The democratic committee, in Its
statement, says: In an analysis of
| the -neiIon tax proposal representa-
tive Gamer points out that there are
o,ool,vvU Inuiv,uuai taxpayers: that
o,loo,v0O or these pay on incomes or
%o,oou or less. Wnicn leaves only 62b,-
wv OF larger surIax payers. hIr. Car
ner contends tnat the Mellon plan,
when stripped of It's MINOR provisions.
on.y offers substantial tax relief to
| the $4,000 individual surtax payer.
Il make this statement" said Mr..
Garner, because Congress couId re-
peal the entire income taxes of the
! 6.l36,000 individuals with incomes of
$4,000 or less, which would involve a
| revenue loss of only S92,790, thereby
leaving the $4,000 large income sur
tax payers as the chief beneficiaries
! or the Mellon income tax recommen-
dations.
Whereupon the republican national
committee comes back with the re-
tort that Mr.. Gamers statement that
a few very large income surtax pay
ers will be the principal beneiciaries
Of the Mellon bill IDS demagoguery
, gone to seed" The republican state
ment goes on to say: THE records
of the internal revenue bureau
show that the number of individuals
pay ing income tax on $500. 900 or over
are today only one-fifth OF the num-
ber that maue returns six years ago,
yet no one believes for an instant that
, the number of individuals who have
large incomes has decreased. Why,
of return? The answer is found in
the high surtax provisions OF the
federal law. Rather than pay the
! high surtax. men OF wealth have In
| vested their money in tax,exempt
| retary Mellon urges reduction in
the surtax."
"The fact is," asserts the repub-
Iican statement, men Of large in
comes will not be the beneficiaries
Of reduction Of the federal surtaxes.
Such men now escape such surtaxes
altogether by investing their money
in tax-exempt securities.
Neither Secretary Mellon nor the
administration is advocating lower
surtaxes out of sympathy for the rich
man or any desire to le sen his tax
burden. They are advocating such
, a reduction out of desire to attract
ca pital back into fields of investment
in Industries, railroads and business.
where the public may be benefited by
such investment and the government
benefited by increased revenues"
~
The democratic national committee
does not intend TO let up on the re-
publicans In its campaign against the
existing tariff law. and seizes upon
the Christmas season to make a spe-
ciaI drive on the effect OF the tariff
on holiday purchases. -
"The tariff tax on Christmas this
year Is approximately a billion dol
lars" the democratic committee says,
"at the lowest estimate, based on the
Christmas sales of six billion dollars
last year. On articles used for Christ
mas presents the tariff taxes for the
most part were collected by the manu-
facturers and certain middlemen. Re-
tailers. II was reported, got little
benefit from them. Articles OF wool
and silk were notably dea-er this year
these higher prices. particularly In
hosiery, underwear, handkerchiefs
, and novelties. Gloves. handbags and
crystal ware were other merchandise
upon which the tariff operated to in
| crease prices beyond the level record
! ed any previous normal year"
The committee quotes the alleged
rates OF increase, asserting that kid
gloves are taxed 81 a pair; cotton
gloves: 20 to SO cents q pair; woolen
and silk hose 60 cents on each dollar.
Going down the line quoting prices
on articles used by each member of
the family. father. mother. little sis
ter and Wtnt"" " the democratic state
Tment concludes:
1.-THE American people can give
themselves q fine Christmas present
! for 1925 by voting the republicans.
with their high living tariff
out of Office in 1924. Merry Christ
mas"
Chairman John T. Adams OF the re-
publican national committee has is-
sued a statement saying that Presi-
dent Coolidge has submitted a bud
get to Congress that provides for q
decrease of $500, 100000 In routine cur
rent government expenditures as COM
pared with the current year.
This downward march Of public
expenditures" Chairman Adams con-
| tends, has never been eQualed In any
previous pe:1od In our nations his
ment In support Of the financial poll,
| cies and economic program OF the re-
publican party under this adninistra-
tion."
Chairman Adams also takes up tar
reduction, saying that "the tax re-
! ductions proposed by Secretary Mel
lon and indorsed by President Cool
idge should be supported by men and
I. women of small incomes. The plan
provides the greatest relief for earn
j ed incomes which are defined as
/ wages, salaries and fees for profess
sional services. According to tabu-
lation by the Treasury Departm ent
| about 70 per cent of the total s323,-
oo0, 900 as proposed by the Mellon bill
will be lifted from the smaller In
comes and less than per cent will