Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-03-04
ENA TE EXPECTED
70 REWR|TE HOUSE
TAX BILL ENTIRELY
I'm Stand of Democrats for
Garner Plan and Attitude
bf Insurgents to Force
Drafting of New Measure
BY DAVID LAWRENCE
50 seG Wire Service to The Journal
lCnnvripbt 1904

Ill
Copyright, 1924
WASHINGTON, March 1.-The
ninistration tax bill now goes
m the frying pan into the fire.
many cooks-an unwieldly
use Of ACKNOWLEDGEMENTS
Mellon plan, and the measure
ich now goes to the senate is so
rred and burned that nobody can
i'm it Is satisfactory as it stands.
tn Republicans and Democrats,
well as President Coolidge and
fretary Mellon, expect a better
to come out of the senate.
But the senate is bound to tear
whole tax bill to pieces and re-
lite the house measure. The tenn
az SSalition between the insur-
a Republicans and the Demo
tsNdid not succeed in passing the
n Offered by Representative Gar
!, Democrat, OF Texas. but it did
fceed in defeating the Mellon
edule Of rates. The difference
Ween the Garner plan and that
ich was finally adopted by the
Use on the suggestion Of Repre-
3tative Longworth, of Ohio, Re-
2plican leader, is not very substan.
|. In principle the Longworth
In jc r7111nn fho eo,1,o
proposal, because both ignore
argument Of Secretary Mellon
the effect that high surfaces are
Pided and cannot be collected.
pa reaching the higher incom IS
specially over 0,000-there is
a slight difference in the ef-
of a 81 IL per cent surtax, pre-
ted by Mr.. Longworth, as com.
led with: a A per cent surtax
3posed by Mr.. Garner. The argu-
Pit of the treasury department
been that not until surfaces
Fe been reduced to approximately
per cent will the large investors
away from tax exempt securi.
to taxable investments.
ouse Measure Would be Vetoed
fhe Republicans in the house
Ye adopted g. bill which contra
Is the Mellon principle, and iudg-
by the informal assertions from
White House, this is such q
Iterial change that a presidential
o would not be surprising. TO
/ 80, however, at this time is not
tsidered discreet, for the a6minis-
Itton hopes to rally its forces in
senate and push the surtax rate,
vn from 81 IL per cent, at least
far as 30 per cent. The Demo
Is, on the other hand, will wage
lis fight for the Garner plan,
Fch has been adopted more or less
the Democratic program. The
urgent Republicans in the sen.
are not as quick to yield as were
insurgents in the house, and
western senators who will join
Democrats are not as easily in
Ridated or as likely to be dis
fbed, whether the tax bill as
ssed by the senate bears Demo
|tic or a Republican label.
Fhe house Republican leaders
Ide their compromise and won
Rr the insurgent Republicans on
plea that the bill going through
house should bear a Republican
lei, SO that the country would not
ke the impression of Republican
funity. TO gain that point, their
publican leaders sacrificed the
Illon plan and the administration
tuiesced largely in the hope that
senate would rewrite the bill.
|e fight has just begun. Many OF
insurgent Republican senator's
10 will desert their party's propos-
are not up for reelection this
tunln as are all members Of the
|lse, and therefore the influence
party regularity is not as strong.
Drhe. only hope for a surtax rate
yer than that passed by the house
J in the possibility of break in
ranks of the Democrats. The
he hope was INDUCED by the ad-
histration in the house, but the
tnocrats stood unwaveringly by
Garner plan. Judging by the
keches which have been made In
senate thus far. there is a ten
hey, to support the Garner plan
long the Democrats. and no DEM
Ratio senator has as yet de-
red himself for the Mellon rates.
fuckl Compromising Necessary
fhsI senate finance committee OF
|Irse will hold extensive hearings,
bre will be prolonged debate, and
en- the bill finally energies from
senate for conference between
y houses it will be a radically diff
lent bill from that which has just
ssed the house. Then will come
btracted discussions in the con.
|ence in an attempt to reach
|npromise once more, and Presi-
hit Coolidge will finally be pre-
hted with bill the rates in which
lis impossible at this moment TO
Fecast, because they will be in
tied as a result OF continuous
|npromising.
Mr.. Coolidge will veto the bill
en only If he thinks that by doing
he can force congress to amend
b measure still further. The
hnces are it will be midsummer
Fore the president will have
4 bill before him, and it may be
Ter the election before the fight
concluded, especially il Mr.. Cool
be sends the bill back to congress
i further consideration.