Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-10-20
Bonus Legislation Involved
in Whatever Move Cool
idge May Make in Mes
sage to Congress
BY DAVID LAWRENCE
(Leased Wire Service to The Journal.)
.iIrI.t i

(Copyrlght, 1881
WASHINGTON, Oct. 18.-Tax re-
vision may be the paramount issue
of the next presidential campaign
The treasury is in such good con-
dition that with further economies
in the coming year a reduction OF
taxes could be accomplished. But
the politicians differ as to the wis
dom of the move and so do some Of
the highest of government officials.
If tax revision is not recommend
ed, however, in the first address to
be made by President Coolidge at
the December session of congress, at
least one aspir: for the Repub-
lican nomination will make it the
basis of his attack in the spring
primaries. And the Democrats are
planning to emphasize tax revision
if the RepublicG MS do not.
Senator Smoot, chairman Of the
senate finance committee, admits
that the treasury could stand tax
reduction but opposes it at this
time on the ground that flood OF
changes will be suggested and the
whole problem reopened. Memories
of the last fight on the tax bill when
the conservatives had a hard time
getting the excess profits taxes re-
pealed are still fresh. Mr.. Smoot
knows also that a soldier bonus bill
will be proposed.
Secretary Mellon, of the treasury
department, wants surtaXes reduced
and certain other changes made that
will stimulate business and the gen
eraI prosperity of the nation. Mr.
iY1y a.
vision is made It should benefit those
of smaller incomes. That is obvious
ly the strategy Of good politics and
was the guiding principle in the
last revision of the revenue laws
that was made.
Madden FavOrs Cut
Chairman Madden, of the house
appropriations committee, favors tax
reduction. He has been making a
study Of the whole situation and
thinks the treasury can stand a cut
in revenues. His judgment will
count a great deal both in the house
and with President Coolidge.
But the situation is not entirely
in the hands of President Coolidge
or the leaders Of the house and sem
ate who are ~-'Oporting him. 1t is
controlled largely by La Toilette
radicals" and members of the farm
bloc They will not hesitate to
open up the whole tax matter. The
big question is whether the admins
tration, realizing the inevitable will
get the jump on it's natural political
opponents and propose a program OF
tax revision which can not be varied
materially.
To propose a reduction of taxes
will incidentally have the effect OF
check-mating for a time at least
the bonus question, if indeed the
bonus supporters revive the kind of
bill they had last time. An effort
will be made by the administration
to put through a bonus bill that
takes into account some Of the va
rious plans suggested last year, but
which does not require so heavy a
drain on the cash of the treasury
at this tine.
Politically it will be interesting to
watch the evolution of the tax pro
gram alongside the bonus measure.
If the latter means a large expendi-
ture, tax revision will not be posi-
BILE. So while the Democrats them,
selves will provide enough votes to
gether with the Republicans to pass
bonus bill and even make it a law
over a presidential veto, if Mr.. Cool
idge should be against it, which is
doubtful, the Republicans will be
the one embarrassed if the passage
of a bonus bill kills tax revision.
The Democratic campaign cry will
be reduce taxes" and opponents OF
! Republican members of the house
and senate will raise that issue large
| ly because the impression has been
sent broadcast by administration
spokesman themselves that taxes
could be reduced.
Taxes VS.. Bonus
Which will furnish more votes
the bonus OF tax revision? Statistics