The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-05-07
DEMOCRATS FULFILL A PLEDGE

DEMOCRATS FULFILL A PLEDGE
The senate's adoption of the Democratic
schedules governing income-tax reductions il
directly contrary to the predictions SO freely
made when the Longworth compromise was
sent up from the house. Then it was
prophesied that the senate would 20 the
rest of the way and, restore the Mellon
schedules in their entirety. Such prophets
were doubtless misled by the fact that the
Republican insurgents in the house on the
final vote deserted the Democrats and voted
for the compromise. 1t now appears that
their apparent desertion was merely tactical,
as the senate stand of the insurgents bears
witness. ls
The outstanding fact is that the Mellon
plan has been rejected outright by both
houses. This is especially remarkable in
view of the great eclat with which the treas
ury plan was sponsored and launched, and
the great acclaim it at once received from
both interested and uninterested sources.
At first the Mellon plan appeared to offer
all the relief it professed to offer. Study Of
it's provisions soon revealed that its relief
was In the higher brackets and applicable
to only small numerical minority of tax
payers. The relief was progressively less
as 1t descended to the lower brackets where
the number of taxpayers was greatest. That
result was directly contrary to what the
people were demanding, so a revolt began at
once among the better informed and grad
ually spread among all the people, as they
came better to understand the application
to their own cases of the Mellon schedules.
Whereas the Mellon plan provided for a
reduction in surfaces from a maximum of
fifty per cent! to maximum of twenty-five
per cent, the house plan proposed BY Dem
ocrats placed the maximum at forty-four per
cent, and the senate plan at forty per cent.
In both the house and senate substitute plans
the reduction In the lower brackets was
twice as great as in the Mellon plan. In
other words, both the substitute plans pro-
posed by Democrats give twice the relief to
the majority taxpayers that the Mellon plan
contemplates. The argument that the higher
surtax rate impedes business is no longer
regarded as sound for the progress Of bust
ness and industry, with the unprecedented in
vestment of new capital, is proof that the
surtak is not the impediment to prosperity it
has been proclaimed to be.
A further effort will be made in the SEN
ate to modify the Democratic plan. Whether
this effort viii be successful as in the house
4 A.. t..A =. -. - A&a
ton of the plan by both houses, it is rea-
sonable to infer that the reaction win be
towards rather than away, from the Demo
cratic schedules. When the senate has taken
final action there win be joint conference
to arrive at an agreement as between the
final senate plan and the Longworth com
promise. In that conference, if the senate
adheres to its preliminary vote, the advan.
tage win be all in favor of adoption of some
thing very near the. original house plan Of
the Democrats. There seems to be no pos
sibIe chance of success for the Mellon plan
Whether the Democratic plan or com
promise plan is the ultimate result of the
conference between the two houses, the vic
tory will abide with the Democrats, who,
though in the minority, were able to defeat
Republican schedule that was proposed
amidst the most favorable auspices and which
in the beginning appeared invincible. What.
ever may be the political motives involved
In the tax maneuvers, it is certain that the
net result will be more to the advantage of
the American people and the American ma
ton than if the Mellon plan had gone
through. The Democrats will therefore have
very strong basis of appeal to the people
for support of their aspirations to national
leadership in the coming campaign. They
will actually be able to claim the credit for
having fulfilled a Republican pledge of tax
reduction when the Republicans themselves
were trying to sail under false colors in this
selfsame regard.
~ vNrnrNvSWPT1 A WnW n