The Dawson news. (Dawson, Ga.) 1889-current, 1924-06-10
SIGNS TAX
BILL, But HITS IT HARD
MESSAGE INDICATES PLAN TO
CARRY QUESTION TO VOT-
ERS AS TAX REFORM ISSUE.
BRANDS BILL AS POLITICAL"

| Makes Some Reductions, But Cool
idge Sees Many Flies in Ointment.
Finds -Four Objections, and Says
States Have Interest in Taxation.
WASHINGTON, D. C.-Displeas-
ed with many features of the compro-
mise tax bill President Coolidge has
nevertheless signed it, believing that,
with all of its alleged defects, it does
grant some measure of immediate tax
relief When he affixed his signature
to the bill Is per cent reduction in
current income taxes became effective.
But Coolidge sees many large flies
in the ointment He issued a long
statement in which he severely de-
nounced many provisions Of the bill,
describing it as a temporary measure
which must be corrected at the next
session of congress.
Policy Declared Unsound.
"The bill does not represent a
sound, permanent tax policy and in its
/ passage has been subject to unfortu-
nate influence which ought not to con-
troll fiscal questions" Coolidge said in
his statement Still, in spite of its
obvious defects, its advantages as
temporary relief and a temporary adj
justment of business conditions, in
view of the uncertainty Of better
| law within reasonable time lead me
to believe that the best interests of
the country would be subserved if this
| bill became a law A correction of
its defects may be left to the next SEES
| sion of congress- | trust a bill less
political and more truly economic may
be passed at that time. To/that end
shall bend all my energies"
The president in discussing obJec-
tionable features, singled out the fol
lowing
/. Reduction Of high surtaxes 10
per cent instead of Is per cent.
Practical Conhscation of Capital.
The principles applicable to high
surtaxes," he said, apply similarly TO
/ high estate taxes. The bill raises the
estate tax to 40 per cent AS a con-
comitant is added a gift tax which is
further invasion of the rights OF the
citizen, both unusual in nature and OF
doubtful legality. When there is added
/ TO tfIS lltC lAAiiStitoh$N teA-NS9 ASft~0 -
| the states this amounts to practical
conhscation of capital. To meet these
taxes executors must realize cash on
forced sales of property, with a gen
eral lowering OF all values upon which
the credit structure of our country is
based, and diminishing the very
source from which this revenue comes.
1t is proposed to take capital and to
use it in the ordinary operating ex-
penses Of government. We are thus
to live not on income but on prin-
cipal. and to that extent we exhaust
our resources and prevent the indus
trial expansion essential to our in
creasing population and our high
standard of living, Heretofore, estate
taxes in the federal government have
! been war measures. 1t is now propoS-
ed to use these reserves in times OF
peace They should be kept for emer-
gencies."
2. Increase of the estate tax to 4G
per cent. This, when added to state
inheritance taxes amounts to a prac-
teal conhscation of capital" He said
| further:
States Have Real Interest.
"The states have a very real inter-
est in this tax Inheritance taxes con-
stitute a material part of state revenue.
| They are a comparatively small FAC
tor in federal revenue. As the federal
government invades this sphere, be
| longing primarily to the states, it will
cut down the flow of income to the
states from this tax and thus force
the states to higher taxes from other
sources, which will mean increased
land taxes. For the sake Of $l2,0OO,-
600 of additional revenue the federal
government in its strength should not
further handicap the states, already
F., heavily burdened with expenditures
which can be met only by taxation.
l believe also it would be advisable
to call conference of the taxing au-
thorities of the states and the treas
ury, before the next session OF the
congress, to give consideration to
some comprehensive plan of division
Iof this field OF taxation between the
various states and the federal govern
ment and the elimination OF overlap
ping and unfair taxes.
3. Requirement that list of all
taxes paid be exhibited publicly in
each postoffice.
4. Provision for making public rec
ords in all tax appeal cases.
The publicity features constitute an
unwarranted interference with the pri-
vacy of citizens, the president said.
at is believed that far from in
creasing revenue, the desire to avoid
the qualification of the idle curiosity
of Others or the exposure of ones per-
sonal affairs TO ones competitor will
result in the concea1ment Of millions
of dollars OF income which would 9th
erwise be reported" Coolidge added.
This means a change in the fun
damental policy of our laws violative
of private rights, and harmful to gov
eminent revenue"
Reduction, Not Reform.
The bill represents tax reduction,
not tax reform" he continued III we
are to maintain the American stand
| ard of living and hold our place IN