Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-01
SENATE SITUATION
FORCES PRESIDENT
To ACCEPT TAX BILL
BY DAVID LAWRENCE
Especial Leased Wire TO The Journal.)
Downright, 1924


climax of the tax revision fight APP
proaches in the senate, the admins
tration has become convinced t last
that the rates proposed by Secre-
tary Mellon cannot be adopted.
Instead the president will have to
be content with a compromise be-
tween extremes. And he will be COM
PEELED to sign the bill presented to
him, for there is no chance of modl-
fication even if he should veto the
n. assure. Sentiment in congress has
crystallized. It is fixed. No amount
Of pressure from the administration
can alter the situation in which
combination Of Democrats nd IN
surgent Republicans hold til real
power.
The senate is about to vote on
series of amendments. ,!enator
Smoot, chairman Of the finance COM
mittee, is starting exactly tie way
Representative Longworth, Repub-
sndeavoring to get a record vote on
the Mellon rates, Nd will be content
% get through that kind of a, bill
which represents the '>~~0n between
:wo extremes. The Democrats and
insurgent Republicans have COM
oined to support rate much higher
-
Mr.. Mellon recommended, and much
over rates so far as persons OF
mailer income are concerned '1n
vas originally proposed by the adj
ninistration.
The battle between sound eco
lomics as represented by Secretary
Mellon and good politics as reflectt'
~ majorities in both the ate
md house has been won by the latter.
Mr.. Melons idea that rich and poor
like would ultimately benefit by a
scientifically applied tax system has
been rejected in favor of a scheme
which reduces slightly the burGen ~
he wealthy, but materially cuts the
axes of individuals with i-comes up
o 10 or Is thousand dollars a year.
rhero are ever so many 800 voters
n the latter group. Fear that re.
auctions granted the wealthy would
De the subject of criticism on the
stump has prevailed in congress. M.
Melons own position has been vul-
nerable, for while if analysed to the
last detail it would be found that he
is not affected very much by any
bill passe( the '--o,>,,--~'~1 has been
spread by his opponents that he
would profit personally, rs would
others of large income with whom
he has been affiliated.
The discussion Of the bonus has
had a. deterring effect, too. The be-
lief that the bonus would cost a
good deal more than has been esti-
mated has a controlling influence.
Congress is in spending rather than
a saving mood. Mr.. Coolidge in his
New York speech pointed to the
number of measures seriously
pressed which if approved would re
quire just double the entire income
of the United States government. Po-
litical pressure Is in many cases re-
sponsible for the desire to appro-
pirate for specific objects beneficial
to certain constituencies. Perhaps
when the presidential campaign is
over and a new congress has been
elected there will be a renewed de-
mand for tax reduction. The presi-
dent will certainly not express HIM
self as satisfied with the bill given
him and he will sign it with what
may be termed left-handed approval
He will be in a position to carry on
the fight for further tax revision
and it would not be surprising II
in the campaign itself the cry of
lower taxes were raised as an issue.
On what the senate does this week
and the conference committee there
after in handling the tax bill may
many of the arguments of the next
campaign be based.
SENATE APPROVES RAISE
IN TAX ON CORPORATIONS
WASHINGTON, April 2S.-The
senate today approved an amendment
to the revenue bill increasing the
corporation tax from II IL to IA
per cent.
Announcement was made by Sen
ator Simmons, North Carolina, rank
ing Democrat on the finance COM
mittee. that the minority would offer
later a substitute proposing a gradu-
ated tax in place of the flat levy.
A decision by the senate on the in
come tax rates in the revenue bill
was postponed today when this sec
ton was passed over for future dis
cussion on request of Senator Sim
mons.
Senator Jones, Democrat, New
Mexico, favored the committee
amendment, with notifications, but
assailed the general form of the
corporation tax as opposed to a
graduated corporation tax. He was
supported by Senator Shipstead,
F'armer-Labor, Minnesota.
Republican leaders frankly ad'
mitted today they had little hope OF
getting approval for the Mellon
rates, although a vote on them will
be demanded first. While they were
prepared to offer amended schedules
towering cars mangled in auto &C
cidents; the Road Hog float, with
Roy Harwell in charge. showing one
machine trying to crowd another
from, the road. the American Rec