The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-28
CHAIRMAN SMOOF
HOLDS THE FORT
FOR MELLON TAX
Final Battle On Incomes
And Surtaxes Comes
This Week
PLANS A SERIES +
OF AMENDMENTS
Frequent Warnings From
White House Presage
Veto On Compromise
BY THOMAS L. STOKES
tBy Leased Wire to Age.Herald)

WASHINGTON, April 27.-The fate
of .full-fledged tax legislation at this
time depends much on the action taken
by the Senate this week on the rate
schedules-since President Coolidge has
emphasized his dissatisfaction with the
bill passed by the House.
A last determined fight will be made
by Senator SmoOt of Utah, chairman
of the finance committee. for the Mel
lon plan. The odds are SO greatly
against him that he has already de-
cided on a plan of compromise, upon
what he is able to save out of the
wreckage planned by democrats and
progressives,. and to what extent any
gains made can be held in final con-
ference over the measure between House
and Senate depends the approval or
disapproval of the President.
Coolidge Firm
Coolidge has stood firmly behind the
plan of his Secretary of the Treasury.
He advocated it in his first message
to Congress and twice since that time
has repeated that this was the only
practical plan of tax relief. In his most
recent utterance he delivered severe
reprimand to those who were block
ing the Mellon plan. which was over
whelmingly killed by the House.
The President has not publicly com
mitted himself to a veto of such a
bill as passed the House. which it is
predicted will be fairly closely followed
by the Senate. But his repeated opposi-
ton has been taken as an Indication of
veto by some observers. Others, how
ever, have contended that he would
pot dare disapproye a tax bill which
gave such considerable relief to the
rank and file Of citizens,
who praSli let q ret the
event The Senate rate schedules are
similar to those in the House bill
say that the President again viii urge
flat cut of % per cent in income
taxes this year by separate resolu-
ton, as already has been ordered by
the House, and will go to the country
in defense of his veto of general tax
measure on the ground that the Mellon
plan was the best method of relief,
and that enactment of any other would
endanger the country's financial well
fare.
Fight Goes On
Despite the Presidents position, how
ever, the fight on the rate schedules
will 30 forward this week with doom
Of the Mellon plan in sight, and adop-
ton of the higher surtax rates and low,
or normal rates advocated by demo-
erats and insurgents as almost certain,
perhaps with some alterations. Sena-
tor Smoot has announced he will bring
up the rate schedules Monday. Be
cause. of the fight expected, it may be
several days before a final vote is
completed.
Smo0t has adopted this strategy for
Fsurtax rates, the storm center. He will
offer first the Mellon maximum of 25
per cent on 100000. When this is
defeated, he will submit a 80 per cent
rate, then upward, to 30, 80. 81, hoping
to secure rate below that of the 40
per cent maxi mumin the democratic
plan, which begins at 100000. The
House bill sets the maximum at 37M
on incomes of 100000 and over.
Insurgents Want Highest
The insurgent group, which numbers
six in the absence of La Toilette, and
several progressives will stand for the
highest surtax offered, Senator Brook
hart of Iowa, has said. The insurgents
are expected first to offer, as a pro-
test, rate of 80 per cent maximum,
which is that in the present law.
, Normal rates will bring another fight.
Insurgents are expected to stand for
the democratic plan. which fixes 2
per cent rate on incomes under $1,000,
/ per cent on those between $4,000
and $1,000, and 6 per cent on those
above. The Mellon plan provides 3
per cent on incomes of $4,000 and I'M
der, and 6 per cent above. The present
law is 4 and per cent respectively.