Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-11-13
ANOTHER TAX GUT
IN FACE SURPLUS
URGED At CAPITAL
Coolidge to Move Slowly in
Observation-Disclosures
licity Clause Under Fire
BY DAVID LAWRENCE
peciul Leased Wire to The Journal-Copy
right 1920

(SleClul Leased WIRE 10 Inc JOurHaI-Copy-
right, 1922
WASHINGTON. Nov. 11.-One
might get the impression from pub
lisEed reports that the Coolidge adj
shape the cabinet, rearrange the
leadership in congress, bring about
a tax reduction and embark on an
agricultural program. But the truth
is not one Of these things will be de-
cided upon hastily.
Tax revision is perhaps the out
standing theme of discussion because
there's surplus. All sorts of plans
are being brought forward, among
them one to give the American
people another 25 per cent reduction
on their taxes just as soon as a def
mite idea of government expenditures
of the coming fiscal year are known.
Last time the administration dan
gled the tax reduction program be-
fore the voters as an alternative to
the soldier bonus bill. But the bonus
had been voted upon before the COM
mitments had been made. Now.
however, the alternative to tax re-
duction is increased government OK
penditure. However much the admin
istration may want to avoid tax
controversy in a session of the pres
ent congress, where the balance of
power is with the La Toilette radi-
calls, the problem will nevertheless
have to be met because there are
many more ways of spending the
surplus on hand than simply giving
it back to the taxpayers. Unless the
administration forestalls expenditure
by announcing an intention to make
cut III taxes, congress will find
dozens of ways to spend the sur
plus.
Horizontal Cut Simplest
The simplest plan of tax revision
brought forward thus far is the hori-
Zontal cut, giving everybody the
benefit of the reduction by the pas
sage of a joint resolution affecting
incomes earned during the year 1924
and payable in March, 1925, and
thereafter. The administration is al
ready beginning to feel the pressure
of public opinion for tax cut and
as congress gets into the thick of
appropriation bills after the first of
the year the demand will grow even
stronger.
Just now there is talk OF repeal
ing the publicity provisions of the
present law. This, of course, would
be repealed il the administration
had its way, bat the uncertain guam
tity is how the Democrats would
vote. Should they persist in their
coalition with the insurgent Repub-
licans no hope of repeal could be-
entertained. There are reasons to be-
lieve that even the Democrats would
like to get rid OF the troublesome
publicity question. They did not rel.
ish it when the tax bill was passed
last session. They had to stand by
II in order to see the Garner Mel
lon rates retained in the BILL AS Il
separate measure apart from taxi
rates the Democrats are not so like
~ to stand for the publicity provi
sions, For one thing, the politicians
have yet to discover any concrete
advantage from that part of the law
and the complaints which have been
pouring in rather indicate serialsI
disadvantages and even injustice. So
far as getting at the returns of big
corporations or individuals, congress.
sional committees would probably
he able to get all the information
necessary. But the indiscriminate
use OF data which the government
promised to keep confidential when
the income tax law was first passed
is not at all essential to the corree.
ton OF abuses in avoiding or evad.
ing taxation.
Wrong Conclusions
Taxpayers say that the simple
publication OF the returns lead 20
all sorts of wrong differences. More
than one individual has had an 10.
accurate return published. He can
find little redress in asking a cor
rection. Some taxpayers checked off
losses and appear as paying small
amounts. They resent the inference
that they have been avoiding taxa
ton.
Should the administration present
a repeal measure, it can really
count on majority support in both
houses provided the administration
puts its whole heart in the request
Some expression from Secretary
Mellon to the chairman OF the ways
and means committee may be ex
pected 1.-THE beginning of the next
session of congress if not sooner.