The Birmingham age-herald., 1924-01-13
OFFERS ANAL YS|s1 0F: TAX PR0P0sALs|
Accords Mellon Measure Merit But Primarily For
 Big Business
WASHINGTON BUREAU l
 THE AGE-HERALD ! WQahlngtOn. ID. O.. Jan IA

Washington. D. O.. Jan. 1e
 The livest proposition before Con- gress and apparently the most inter esting before the country, is the prospect of tax reduction.
 The plan of Secretary Mellon. when first announced, attracted favorable attention, and in Its support there came to Washington what one im- portant member of Congress declared to bo an organized propaganda.
 and means committee evolved . plan. The difference in the two is that the plan of the Secretary seemingly gives prime attention to big business whereas the plan of the democrats would grant first relief to the man of limited Income.
 Representative J. F. Byrnes of south Carolina, member of the committee on appropriations, at the request of this bureau, prepared . striking and ses ching analysis of the two pro- pos tls. He concludes with the state- mont that even if tho democratic plan would tax Secretary Mellon of $5,ooo.ooo. the Secretary would still have enough for . rainy day.
 MT. Byrnes' statement follows:
 eMany people have been kind enough to write me their indorsement of the Mellon tax proposals. am always delighted to receive the views do not adopt the view urged by the metropolitan newspapers that any effort to amend the Mellon bill is evil denoe of opposition to tax reduction. MT. Mellon is not infallible. cannot forget that in September. 1s23. he an- nounced that the treasury would at deficit of more than ss5o. .ooo, ,ooc. President Harding was misled by him to use these figures in his message vstoing the bonus bill. Ten months later, at the end of the fiscal year, it was necessary to prove that the gov efnment had been economically ad- ministsred. and MT. Mellon announced that on July 1. 1923, the treasury, in- stead of . deficit. had . surplus of Ss11.000,o0o. It was . mistake in 10 months of approximately one billion dollars. and while admire the skill with which he can produce either 6 deficit or . surplus, As the oooasion vestigation and consideration, his Dro- posals and estimates
 M.r.s.rse.. Prepos.ls. q 1 S
 Many of the Mellon prvposals possess great merit, especially those and will undoubtedly be adopted. But I cannot approve the Mellon proposal to reduce by 25 per cent the tax upon incomes over, $20o,0oo a year and only by 1 per cent the tax upon incomes under $4.ooo per year. As . substi- tute for these rates the democrats incomes from s2,ooo to sso,ooo. and on all incomes above $so,00o year a smaller reduction than Mellon pro- poses, and yet on the largest in- comes, 6 per cent less than is paid under the present law. While Mellon does not increase the exemptions, we propose an increase from sa,6oo to $3.000, so that heads of families with less than s3.o0o incomes shall pay no tax. and propose that single per- sons with less than $2,o01 shall pay no tax. We propose also that persons not liable shall not be forced to make returns.
 "Mr. Melion's objection to this schedule Is that persons with incomes over $200,0o0 will put their money in tax exempt securities. With surtaH of 30 per cent at present, we are told thes country Is prosperous and the industrial bond market Is good. We propose~A4 per cent instead of the 25 per cent urged by MT. Mellon. No man can say that 25 per cent ia the exact per cent that will prevent all investments in tax exempt securities. I do not know that 1t is desirable to entirely prevent all investment in such securities. because from this source we secure the money for the farm loan banks. and make possible loans to farmers at 5A per cent.
 MT. Mellon asserts that 6 reduction of 25 per cent in the tax upon i'm comes over $200,000 will afford in- direct relief to all by stimulating business. A greater reductionNthan he proposes, for the masses and upon incomes from $2.0oo to S6o,ooo year will relieve the average business man: increase the purchasing power of millions of people and indirectly re- ueve big business. prefer to give the direct relief to those least able to bear the burden of taxation. instead of to those best able to bear it.
 Concerning "Demagoguery%
 "when 8 member of Congress Sa- vors relief for the many instead of the few certain groups charge him with demagoguery. No such charge is made against MT. Mellon when he. while protesting to favor Q repeal of war taxes, recommends continuing every war tax except the tax on the- atres and movies, Next to the press. the movies have the best opportunity to mold public opinion, and MT. Mel lon needed their support for his pro- posals and for his party in the coming election. In practically every movie and theatre, appeals arS being made for Mellon's plan. favor the repeal of the movie tax. but favor also the repeal of the tax on candy, fountain pens. jewelry, the stamp tax on docu- ments and all other war taxes. and this is possible under the democratic proposal.
 "Under the Mellon proposal the farmer and merchant under the ne- oessity of borrowing $10o to carry on business would continue to pay the stamp tax on his note. while his neighbor, who indulged in the luxury of attending the theatre would no longer have to pay the admission tax
 Having appealed to the movies
 
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