The Birmingham age-herald., 1924-02-21
A DEMOCRATIC VICTORY

The tax measure, passed Tuesday by the House of Representatives, is a straight-out Democratic victory. To be sure, the meas ure won through partly because of the aid of the irregulars withdrawn from the Republican psrty, but it is a remarkable fact that the Democrats occupied a strategic position be- tween the Republican extremists and the Republican regulars and naturally offered she best medium for agreement. While the house bill is based on the Mellon program, yet it places the emphasis of tax reduction m an entirely different group of schedules. Whereas, the Mellon plan was designed prin- cipally to relieve the huge incomes, the Dem ocratic plan gives the primary relief to mod crate incomes, and thus serves far greater portion of the population, that portion also which most needs the .eduction., There is no manner of doubt that the Democrats have turned spacious tito real program of tax relief for the American people.
 The 16resent surtax on incomes above S92 900 is fifty per cent, and that Is scaled down to one per cent. on incomes of SIX thousand dollars. The new bill reduces the maximum surtax to fortyyour per cent. and removes all surtaxes on incomes below twelve thousand a year. There will be exemptions of two thousand dollars for single persons and of three thousand for heads of families. The tax on incomes of less than five thou sand dollars will be two per cent. on the amount in excess of the exemption, while incomes above five thousand dollars will pay a tax of four per cent, and those above eight thousand dollars tax of six per cent, which in each case represents reduction of two per cent over present schedules. The \ Mellon plan placed a tax of three per cent. on incomes up to four thousand dollars, and six per cent. incomes above four thousand dollars with q surtax beginning at ten thou sand. The house plan thus gives the mod crate taxpayer, whose income, presumably, is more nearly absorbed in his living expenses, the principal relief, and graduates the relief in lessening degree through the higher brackets, where the margin between income and neces- sary expenditure is measurably greater.
 It must be said for the Mellon plan that it was launched with all manner of acclaim and waited far the breath of its inter- ested advocates. The people, long deluded into expecting tax relief ever since President Wilson vanly urged a Republican congress to revise the tax schedules, at first thirstily embraced the proposal and happily told one another that the plan granted their desires. The poll of fifteen million citizens now being taken by the Literary Digest showed that at first the opposition to the Mellon plan was very small, but each successive week has re- vealed d rising tide of disapproval, which is perhaps a direct measure of the growing pop ular enlightenment.
 Fortunately, leading Democrats perceived the falsty of the impression created by the sponsors and advocates of the Mellon plan, and elaborated an amended schedule which does in reality what the Mellon plan was inaccurately represented as doing. There fore, the amend,d bill, if it passes also the gauntlet of the senate, will carry the gen uine tax reduction, first advocated by Demo- crats and now, after d long period of Re publican blundering, actually achieved by Democrats. Tax reduction is carry-over from the Demb bcratic administration, and it is only poetic justice that the Democrats should have had and seized this their first oppor- tunity to make good. The whole country should draw q valuable lesson from the cir cumStance.