The Monmouth inquirer. [volume] (Freehold, N.J.) 1865-1933, 1924-02-14
PARTY SPLIT ON
Is P. C. SURTAx
Chairman Green Outlines His
Program for Dealing With
Rich Evaders.
THINKS CONGRESS WILL ACT
Says Wealthy Taxpayers Should see
on Basis of Fully IS Per cent-De-
cIares the Rich in England
submit to Heavier Charges.

Washington.-Rep in the
House of Representatives went
through a period of storm and stress,
endeavoring to find a common ground
upon which they may stand in oppos-
ing the Garner, or Democratic, plan
for reduction of taxes.
While Republican Floor Leader Long
worth was marshalling his cohorts
and sounding the depths which might
develop compromise, Chairman w. R.
Green of the Ways and Means Com
mittee made public an open letter adj
dressed to DR.. T. S. Adams Of Yale
University, in which he made it plain
he stands for a maximum surtax of
not less than 35 per cent and outlined
his program for dealing with tax eva
sion. The 35 per cent maximum sug
gested by Mr.. Green was the measure
which found most popular favor with
the Republican members, few of
whom believe the Mellon figure of 20
per cent. can prevail.
Mr.. Longworth called a secret meet
ing of the Ohio delegation as a start
ing point in reaching common de-
nominator, but the Ohio members adj
vanced SO many different ideas it was
impossible to arrive at an agreement.
Few, If any Of them favored the rs
per cent figure included in the Mellon
bill which will be reported by the Re
publican members of the Ways and
Means Committee While some of
them favored IS. per cent, others were
for still higher figure and Mr.. Long
worth gave up his efforts at peace
making for some future time.
The letter of Chairman Green to
DIR. Adams indicated the spirit of in
surgency. Although Mr.. Green decided
to vote to report out the Mellon plan,
he will reserve the right to oppose it
on the floor. DR.. Adams had written
an open letter to Chairman Green
Jan. 26, in which he criticised the
pending tax plan. DR.. Adams, now
holding the chair of political economy
of Yale, was formerly adviser to the
Treasury and had a part in building
the two last revenue bills.
Chairman Green makes it plain that
in addition to opposing the 25 per
cent surtax maximum called for in
the Mellon Plan, he does not believe
the present bill goes far enough in
stopping up the holes through which
the very rich escape the payment of
their just taxes.
He argues for the application Of
gift tax to prevent the distribution Of
rich estates by their owners during
their own lifetime and for the applica-
ton of tax on tax exempt securities
found in the estates of decedents, He
adds:
1.-THE statement which you make is
an astonishing one to me. 1t amounts
to this: That the extremely wealthy
now defy the Government and intend
to continue to defeat it out of it's just
share of their taxes, therefore we
should cut their tax in two. 1t is
unnecessary to say that the political
party which proclaims such a doc
trine will seal its doom with the an
nouncement You say, in effect, that
they will not pay 35 per cent, which
/ have advocated. I say that the man
with immense wealth who will evade
taxes at IS per cent will do so at 20
per cent. In neither case has he any
need for the money which he keeps
from the Government.
at is true, as you state, that there
is much complaint against the income
tax, especially among those who pos
sess great wealth, and this spirit of
late is being diligently fostered with
view to shifting its burdens to
shoulders least able to bear it.
In the beginning of the letter Mr..
Green recognized DR.. Adams as an ex-
pert, but the chairman said that
through his connection with financial
legislation in Congress he was able to
understand the situation there better
than any one else outside could pos
sibly do.