The Omaha morning bee., 1924-06-03
Bill Flayed
by Coolidge
in Message
Defects Pointed Out in Biting
Attack; Approval Given
Only Because of Tax
Cut Urgency.
VIII Seek New Law Soon
By Universal Service.


Washington. June 2.-Presidens
at this afternoon.
Immediately thereafter he issued q.
statement citing its manifold and
grave defects. and expressing fear for
the nations future economic welfare
IL another congress does not supplent
that which is obviously patchwork
piece Of legislation.
The president attacked the meas
ure, constituting a distortion of the
Mellon schedules. from numerous
.tandpoints. His views are concurred
in by the secretary OF the treasury.
who drew the bill originally SUBJ
mitted to the house and senate.
The president made il clear that he
affixed his signature only because OF
the immediate urgency OF tax redue-
ton. the giaring faults Of the hereto
fore existing law and the fervent
hope that the new one will not live
long at the hands of the new con.
gress.
Delivers Biting Attack.
II was directly charged by the
president that the bill was tackled to-
gether not on an economic. but on a
political basis. The president PROM
ised to bend all his energies next De-
cember to bringing about genuine tax
reform.
In an aggressive style, reminiscent
OF Theodore Roosevelt's best papers.
President Coolidge delivered a biting
attack upon the various sections OF
the bill, and fiayed congress for dis
carding the Mellon plan.
Failure to reduce surtaxes 10 less
than 40 per cent. he asserted, means
that initiative and enterprise are
throttled.'' 49,
The enormously high federal and
state tax of 10 per cent. added TO the
gift taxes and inheritance taxes levied
by the states. amounts 10 d 'pTac-
teal confiscation Of capital" the
president declared.
The provision for publicity OF IN.
come tax returns, he continued, sac
rihces, without reason. the rights OF
the taxpayer and he believes II viii
result in the concealment Of millions
Of dollars hncome which would
otherwise be reported.
Reduction. Not Reform"
Among his sword thrusts were
these:
The bill represents tax reductions
not tax reform"
IF We are TO maintain the Amsri-
can standard Of living and hold ON.
place in the world. we must adjust
our taxes upon an economic and not
a political basis"
"A correction Of its fthe hill'sl de-
fects may be left TO the next session
of congress. I trust a bill less poi
teal and more truly economic nav
be passed at that time. To that end
/ shall bend all my energies"
"As a permanent expression Of gov
ernment fiscal policy. this bill con-
tains provisions which. in my opinion.
are not only unsatisfactory, but are
harmful TO the future Of this eoaR-
try"
I'VE are presented with plan OF
taxation which Furnishes energy and
initiative and must decrease rsXe-
nue."
Will Exhaust Resources.
1T is proposed to take capital ard
to use it in the ordinary operating ex-
penses of government. We are thus
TO live. not on income. but on pgiT-
cipal and 70 that extent We exhaust
our resources and prevent the indus
trial expansion essential 10 our in
oreasing population and our hiSh
standard Of living.
BY far the greater part Of the less
o. revenue which will be brought
about by the bill is in income taxes.
of the 11e. 1000 person.. in this
country. less than 4.eoo.ooo pay IN
come taxes directly. The remaining
ioe .ooe.oo who pay no such direct
taxes are given no relief from what
they pay indirectly IN everything thev
buy. They. too. must have tar re-
duotion. These conditions the p-esene
bill does not meet"