The Omaha morning bee., 1924-04-30
OmdhdNhcIb theMlest Is al It's Best


A professor ut a Washington school. addressing
The Law class. Is quoted saying thai The immense
amount Of propaganda put out in favor Of the
Mellon tax plan indicates deliberate purpose to
deceive the public. What about the equal quantity
Of propaganda put out In opposition to the Mellon
tax plsn7 l. that all chemically pure, just because
II happens to take view opposite to that Of the
secretary of the treasury
Senator Smoot, who is admittedly an authority
On government finance, n student of taxation, and
familiar with the workings of the several revenue
laws that have been passed within the last dozen
years. advocates the Mellon plan. Senator Simmons,
equally authoritative and sincere opposes the Mellon
schedules. Is IT not rather difficult for the man In
the street TO decide between them7
II Andrew Mellon 10 before the pub
Ne ss head Of a great induotria concern, and tell
what he considered good for that institution Its
stockholders would give immediate assent and would
doubtless profit by the advice. When Andrew
Mellon, secretary Of treasury, advises financial
policy for the government, he Is Immediately at
tackled. His honesty Is impugned his integrity ques-
tloned and he Is openly charged with attempting to
turn his high position to private profit
Somebody must decide the for collecting
revenue for the government, the amount that each
individual must pay, and finally plan that will
not seriously interfere with ordinary business.
Walter W. Head, president Of the American Bankers
association, speaking at Atlanta. Sunday, said;
THE investigations At washington hive had no
material effect business conditions throughout
the country. Honest business and honorable bust.
ness men--and this includes the great majo,Aiy~-
hsve nothing 10 fear from such Investigations
Tho delay In the revision ~ taxes--pra ctcaIIy
the income and excise Internationally hampers
business initiative" he continued Under present
conditions business men forced 70 csrry on for
several months without knowledge Of the amount of
nres which they must pay.
There Is the opinion Of who is In position
TO know for he has the broad and unrestricted out
look Of the great association Of institutions whom
business turns. The delay the tax bill has been
the most serious influence Of the present session Of
congress. Like the investigations. this delay has
turned almost entirely the political situation. In
the honse, where the originated, the Mellon
plan was made . football by factions and groups,
many Of them confewedy ignorant Of the science Of
finance, and unfamiliar with even the rudments Of
taxation, yet all confident In their power to mudde
II not destroy the work Of the administration In It's
effort to secure tax reduction.
Chiefly, almost solely, the battle has raged around
the surtax. How great an mpoa shall be laid
the income Of the rich? Here II where the propa-
gaBda against the bill has reached It's zenith. No
form Of discussion IN employed. but somewhere In
H. either adroitly concealed or openly psrsded, II
the assertion tbst the Mellon plan will take the tax
on the Yieh and place IT'S burdens on the poor. No
wN employed 10 carry out purpose.
The latest word from Warrington IL that the bill
viii pass the senate carrying maximum surtax Of
probably 40 per cent. This will be Is per cent
higher than the secretary Of the treasury recon-
msnlsd. A revenue producer, the high surtax
has failed, because . continually diminishing sum #
money comes into the treasury, while the amount
Of income Of the wealthy that goes into ax-fres
eurities Il steadily increasing. The question to be
decided IL whether . moderate reduction be made IN
hope that some part Of this income may be diverted
10 productive enterprise. whether the high rate
prevail with the effect Of forcing huge sums Of cspi
fsIinto hidng7
The tax-fres securities mainly bonds Issued
By states and the political subdivisions Of states for
the purpose Of paying for public improvements In
ferest and principal Of these will be paid by the small
taxpayer, the farmer, the retail merchant and the
home-cwuer. When anyone tells you the IN In
significant, remember that for the year 1923 more
than billion Of dollars sought refuge In this haven
of fsecury for lazy dollars, driven there by the high
tar rate
legislation by propsgspds Is always a question.
able and sometimes dangerous course. In the
present instance, the campaign against the Mellon
plan IL a. open 10 suspicion that for H. Interests
on either side srs active. The public II divided sc
cordins A. the popular mind s affected by the argu.
ments presented way the other. Some sort
Of revenue measure will pass congress, for II IL
necessary that taxes be reduced, and all parties are
sxreed on this point The only question II how 10
Il 70 about the work. Our advice Is 10 keep nm open
mind, and hope that workable measure will come
out Of the dispute, that wil lessen the burden
70 ALL and show the way 70 better plan for the ~
ture Lsvyng taxes 10 meet party ezigenccs is bad
for al.
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