New Britain herald., 1924-02-22
MERRITT FAVORS
 TAX REFERENDUM
Stamford Congressman Suggests
 Putting Problem Up to People
BY GEORGE II. MANNING. Washington Bureau of N. B. Herald

thaSnlngton Bureau or N. S. Herdld1
 Washington, D. C.. Feb. 22.-The entire plan for tax reduction legisla- ton, including the Mellon plan and the several other proposals, may fail entirely of enactment by congress at this session, and may be put before the voters for decision at the presi- dential election next fall, in the opin- ion of Congressman Schuyler Merritt of Stamford
 Such a generally unexpected de- velopment would not be without it's advantages, Mir. Merritt asserted to- day. because it will bring about a dis cussion all over the country of the entire taxation problem which ; will doubtless be. educational and if the end very beneficial.
 If the democrats and the Wisconsin insurgents continue to stick together
 and put the entire Garner (democra- 'ic) tax plan through, and the senate should approve it it will create a deficit of s200,000, 0a0, according to treasury estimates, Mr. Merritt de- clared, which would make it only req sonable to expect that President Cool idge would veto the entire bill.
 The situation in the house was shown accurately by the proceedings of last Tuesday, February 1sth," said MT. Merritt in discussing today the tax reduction situation as it is in congress. An amendment to the surtax provi- sion had been offered by Mr. Garner for the democrats. and substitute for the amendment by Mir. Frcar for the Wisconsin radicals. The regular re- publicans did not want to vote for either of those propositions and did want to indicate their approval of the Mellon plan, involving a maximum suFax of 25 per cent.
 "A plan was finally evolved which was carried out by Mir Madden, mittee, who offered an amendment to the Frear substitute, the Madden amendment containing practically tho whole Mellon provisions on surtaxes, with the single change of altering the 25 per cent to 26 per cent so as to make 1t an amendment to the original bill.
 When the voting began the Mad den amendment had in Its favor 152 against PA. Then came the vote on the Frear amendment. which com manded 46 votes against 26i noes. This shows what may fairly be called the radical vote and the non-radical.
 Finally came tho vote on tho dcm- ocratic amendment of Mir. Garner and that was carried by 221 votes against 136, majority Of %, and this was carried by the entire demo- cratic vote, plus inc Wisconsin radi- l calls.
 These votes are interesting be- | cause they show the alignment of the | different parties. but with this oxcep- ton, that the vote on the Garner amendment was solid democratic | vote brought about by their caucus rule, which compels every democrat | who wishes to remain regular. 10 abide | by the rule of tho caucus, this rule I not existing in the republican organ ization.
 "on A subsequent vote with regard to taxing stock dividends the amend ment which would have brought about the taxing of stock dividends was lost owing to the fact that the democrats swung over to the republicans, and on this vote made the conservatives victorious.
 If, as the bill goes through the house." continued Mir. Merritt. the continue to vote the entire Garner plan they will produce u bill which, according to the best treasury estimates, will produce a deficit of at least s2O0,000.00O, and it is natural to suppose that if the senate should in any such bill the president would veto it and we should then have Inc whole question before the voters in the next presidential election.
 This result. in my opinion, would be not without its advantages because t would involve discussion through rut the entire country Of the whole question Of taxation and l think that such discussion would be education- 3l and, in the end. beneficial"
 There is considerable originality ibout Congressman MerIitt's sizeup Of he situation. Few members of con- sress have looked beyond the present n regard to tax legislation and he is entire failure Of the Mel lon plan and all other plans for tax 'eduction legislation this year.
 Mir. \trfitt is q big manufacturer [ 1f Stamford and Is credited by his { colleagues with unusual clearness Of { fision regarding business and import mt legislative measures. i
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