The Birmingham age-herald., 1924-03-09

PRESS ON TAX MEASURE " When the house of representatives finally passed tax-reducti0n measure, the insur- gents joined with the regular Republicans in the final vote. At first thought this may appear to have been victory for the regu- lars, but more careful consideration con- svinces that the Democratic influence was successful in materially altering the Mellon bill from it's original form. That the Demo crats could carry out their program intact twas too much to expect. That the minority party has exerted the predominant influence sin the present congress is credit enough for fone while.
 In the view of the Dallas News "Mr Gar ner and the Democrats lost the final and decisive battle in the campaign for party ad- vantage. But what they lost was the em- 4 blem rather than the substance of the vic tory that was temporarily theirs. In the matter of the maximum surtax rate thirty seven and half per cent. more nearly ap- proximates the forty-four per cent. of the Garner bill than it does the twenty-five per cent. proposed by MT. Mellon. There are other differences which lean toward the Garner proposal rather than toward the Mellon proposal. Hence if the measure sent to the senate bears the Republican label, it
 
 does the Republican idea" The News is of the opinion however, that as the measure runs the gauntlet of the senate and of the later conference committee it will conform more nearly to the Mellon plan as a matter of growing Republican unity in the face of a political campaign introduced by party scandals.
 In Iessa> SeSree the Atlanta Journal gives the Democrats soms credit: Had the in surgents so willed, they csuld have pressed the Garner plan to passage, for in the closely matched party numbers of the house they hold the balance of power. But in the final tug all seventeen of them, including ten from Wisconsin, went back to the Republican camp. So perished MT. Gamers expecta- tions. Nevertheless, the Democratic fight had it's effect and was by no means In vain" The Republicans were forced to a compromise that in it's present form is nearer the original Democratic than to the original Republican bill. According to the Nashville Banner There has been much sharp play of politics since the matter reached congress; which should not have been but was natural and ln- evitable. Unquestionably all members of congress have come to a realization of the force of the popular demand for relief from the onerous load entailed by the war. Con Ssidering the, fact that this is a presidential year, the compromise effected is about as sane land as much as may be expected"
 Inasmuch as the adherents of the two plans were about equally divided, the Louis vile Courier-Journal decides that it has been apparent for some time that the best plan they can get is a compromise between the Mellon plan and the Garner plan. The house bill as finally passed is essentially that. In what shape it may emerge from the senate is problematical. It seems cer- tainty, however, that some sort of tax re- duction bill will be passed by that body. The demand for tax reduction is practicable" The Courier-J Journal appears willing to ac- cept almost any degree of reduction at this time and observes: ''The true policy of all factions is to get together on the best at tainabe compromise and look to new deal nfter the election for a more satisfactory tax revision"
 "a Republican papers are for the Mellon plan For example, the Washington Post remarks: sThe reason why congress should throw away politics and adopt the Mellon plan is because it provides the maximum of relief with the minimum of loss to the treasury, while stim- ulatinR industry in such wise that enlarged revenue will result without becoming bur den to the people," Perhaps the Post ex- pects this increase to derive out of thin air, inasmuch as the people are not to pay it. The same newspaper goes on to say: Ihe Garner plan would seemingly have given more relief to moderate taxpayers; but thls was only in seeming, as the drying up or revenue from industry would have required the imposition of heavier taxes upon salaried incomes.' Inasmuch as the Post does not care to take into consideration the fact that : the present heavy taxes have not discouraged capital investment, as witness the present greatest industrial expansion in our history, perhaps it's conclusion need not be regarded too seriously.
 In judicial vein the Cleveland Plain Dealer concludes: "The big question pre- senting itself in connection with the com promise measure is that of it's productlveness. Will the reduced charge against incomes large and small produce enough revenue to meet the still heavy expenditures ot the gov ernment? The treasury opinion was that fhe Garner plan would not. 1t IS also the treasury opinion thats the surtax reduction carried in the house bill will not be suttl- cient to draw capital out of tax-eXempt bonds and back into productive employments, from which it would appear that a deficit under 1the new law were at least not improbable
  that the surest way to draw money out Of tax-exempt bonds is to forbid future exemp7 tions.
 True to its instincts pacificator the Washington Star expresses the belief that If both parties in congress are content with the measure as a factor in the coming cam paign, as it stands today, the public ought to be satisfied" As a matter of fact how ...n. nathan Dartv is satisfied and either would change it, if it had the power. The Star. nevertheless, more truly observes "The paramount concern in the matter IS that the tax burden be frightened without i'm pairing the revenues of the government be- low the point of maintenance requirements and debt-paying needs and, incidentally, re- leasing capital for service in industrial ex- pansion."
 The New York Herald is philosophical "The prospect, so far as the taxpayers are ..s.no5 i, moi diScOnraping. Half n loaf