The Colorado statesman., 1924-01-12
EVERYONE WANTS
TAXES REDUCED
SECRETARY MELONS PLAN CAN
NOT BECOME PARTY ISSUE
EXCEPT BY FORCE.
COMPLICATED BY THE BONUS
BY EDWARD q. CLARK

COnSTeSS, ulteT lOOhlHP Ut lle Ille VI
mail on his desk the other morning,
said: ''If there is any taxpayer ir the
United States who has not written In
behalf of a reduction of taxes, l would
like to know his name. He deserves
the Congressional Medal of Honor"
Secretary Melons tax reduction
plan cannot become a party issue I'M
less one or the other of the two great
political organizations forces it to take
on issue form. There are Democrats
and Republicans who take exception
to some of the suggestions made in
Mr.. Melons proposal. but they take
no exception at all to the suggestion
that taxes shall be cut
In congress, however, while the thing
Is not strongly a party issue, there Is
row on over the subject. The Sec
retary of the treasury said specifically
In a communication written some time
ago that the country could not pay
bonus and at the same time reduce
taxes. In a second communication Mr..
Mellon outlined his plan for tax reduc-
tion and said In effect that If it were
Incorporated into a law, the wage
earners of the country, which of
course includes salaried men, would
have their income taxes cut A per
cent.
Inasmuch as the men who for serv-
Ices rendered get pay checks once
week, or once a month, are numbered
by the millions, it readily can be I'M
derstood how Joyfully this message of
Secretary Melons was received
fHn lott
and the kilograms received at the
White House, at the Treasury depart
ment and at the capitol form basis
of judgment, it can be said that the
salaried people are unanimous in be
half of the Mellon plan.
Some Say Both Are Possible.
Now there are lot of things stand
ing in the way of the success of the
Mellon plan in congress. Just at this
writing the adjusted compensation bill
and the tax reduction bill are strug-
Cling for precedence. There are sena-
tors and representatives who say that
the bonus can be granted and tax re-
duction secured along with 1t, but
there are others who say that the
thing cant be did" However, con-
gress apparently Is going to try to do
the two things.
Once again a sales tax has been
proposed as a means of taking care
of the payment to the veterans in case
the house and senate shall pass the
measure over the presidential veto.
Senator Smoot of Utah Is one of the
chief champions of the sales tax. II
such a tax shall be authorized it is
said that it will add about one-eighth
of one per cent to the cost of ordinary
purchases in the stores, "a tax so
small that nobody will feel it."
The opponents of the sales tax, how
ever, say that while one-eighth of one
per cent means nothing to man or
woman when small purchase is
made, it will mean a lot to them when
they come to add up the amounts of
their purchases at the end of a year.
In other words, the opponents of the
sales tax say it is a sort of camou-
fage tax and that it will get in its
work just the same even If during the
days of passing purchases 1t Is not
noticed.
Veto by Coolidge Is Certain.
Inere Is no eNlueHCe lIul tlle l. iCoi-
dent intends in any way to recede
from the position which he has taken
on the bonus and which he outlined
in his speech to congress. Therefore,
1t is just as certain today that veto
will come as 1t was on another, day,
and it also is just as certain that con-
gress will pass bonus bill and give
the President a chance to enter his
forbidding objection.
1t still is unsafe to prophesy def
nitely what will happen in the senate
when the bonus measure comes back
to it from the White House with the
disapproval mark on 1t. Senator
Smoot the other day said there were
enough votes in the senate to pass the
measure over the presidential veto.
There are other senators, however,
who think to the contrary.
The hope of the persons who are op-
posed to the enactment of an adjusted
compensation law is that, when the
tax reduction bill is outlined definitely
and it becomes apparent that the taxes
cannot be cut in accordance with the
measure unless the bonus is defeated,
senatorial sentiment will shift and
that the Presidents veto Will be al
lowed TO stand.
A member of congress the other day
paraphrased an old rhyme thus:
Taxation is vexation and the bonus
is as bad"
This seems to sum up the situation
SO far as congress is concerned. Vir-
tually every member in the house and
most of the members in the senate de-
sire to pass the bonus bill and desire
at the same time that there shall be
tax reduction. They find themselves
wishing tnday that adjusted cOmpen-