Milford chronicle., 1924-02-22
DIFFERENCE BETWEEN ECONOMY AND DEMAGOGH

The Democratic national committee issues statement
to the effect that the tax reduction plan proposed by
sentative Garner in the Democratic minority
in the House much better plan than the socaed Mel
ION tax plan This statement belongs others which
are classified as important if true"
Without entering into technical discussion of the
various schedules of the two plans may be stated that
TWO fundamental differences between the plans are:
Q) The Garner, Democratic tax pan would create,
deficit of over $3OOOOOOO0 while the Mellon plan would
raise sufficient to the necessary expenses of
the government.
(2) The Garner, or Democratic tax plan would contn
ue to drive of wealth their captal in nom
taxable securities and thereby diminish the taxes which
men OF wealth pay the federal government The Mellon
tax plan reduces the surtax rate to point men of
wealth would find it more profitable invest their money
IN industry business and other profitable enterprises and
pay taxes the profits they make at the surtax rate fixed
by the Mellon plan than they would their money
in tax-exempt securities
The Democratic tax plan creates because it is
conceived and written not as a revenue measure but as
political measure This proved by the fact that the
Democratic leaders in the House changed the rates and
exemptions in their plan three times within less
than three weeks. All of these changes which were made
public were admittedly made for the purpose not of raising
creating scientific tax measure bt for the
purpose of catching votes"
The Garner plan written solely with an eve to the
November elections regardless of what disusionment
may await the taxpayers after the election The Mellon
plan is written with to the financial condition of the
united States government at the end the next fiscal
year The Mellon tax plan scientific readiustment of
the present federal tax schedules with reducing
federal taxes upon classes of citizens as mucb as nos
sibe and still leaving the government at the end of the
fiscal year with a surplus
The object of tax to provide revenue
The first essential of tax be enacted
~ the present Congress is to provide enough revenue to
meet the operating expenses of the government when COM
lined with other of income. n
The present tax law, together with the Fordney-NIc
lumber tariff provides enough money to meet the oper-
ting costs of the government with $35OOOOOOO over This
upus could be used to off the public debt at faster RI
ate than is being done rate of about one
ilon dollars year. This surplus could be suuandered
appropriations. el
The policy of the Republican administration is to do 81
either 1t to reduce the taxes sufficiently to as
Intimate the surplus. But it perfectly apparent that
Xes cannot be reduced in the aggregate more than the
visiting surplus else there will be deficit It is not nc
'onomy, it is not sense to propose tax
duction program which the face of admittedly will gr
oduce national deficit Such program is hypocritica To-
the moment the deficit exists it necessary to raise CT
taxes to meet the deficit to prevent its recur re
nee. tet
Here arises the fundamental difference between the u
ellon plan and the Garner plan. Mellon plan re- @
ces taxes in equivalent to the surplus or about
5OOOOOOO The Democrats desiring make political ed
pita rather than provide the government
jump " w '' VIC Gan MAKE sreater lax the
auctions than the Republicans therefore we propose ali
IN that will reduce taxes $62S,O00,0OO" anC
of man would it be who in order IN sbov be nit
I'D economize would de1iror,+o1,, + ~ - - - to
- H.. -. 60 =, -. ~ ~ nie " to
" " MS i"inliy nau 10 go IN deDt TO live? What teri
ID Oh pubic economy is it which reduces taxes the
mt where the nation ncurs deficit? What kind of in
dersbip is If which advocates +bis oro o1 :. - bers
eW
- " oes' no" much sincerity IS mer
re Ill Ihe pollCa party which advocates such make hav
economy program promises lower taxes this
well knowing such policy means taxes higher af 1t
the eIaction than +to,, 4or 80 9 90 poll
O' W ' the