The Washington times., 1924-01-07
JTL.0NER
BRACKETS
HARDER
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cratic plan more nearly approaches
their ideal. taking as 1t does a
great deal off small incomes. and
making only nominal reductions in
Dig incomes.
The Democratic drive to offset
the momentum which the Mellon
plan has attained SINCE its publica-
ton two weeks ago was featured
today by speeches in the House,
and by the launching of q campaign
BY the Democratic national com.
Mittee against the Mellon plan.
Compare Savings.
m q satir.cal article headed "Who
Gets the Mellon?" the committee
today issued an analysis Of the
Mellon plan which among other
things said:
"A person with 100000 income
saves under the Mellon plan
e25l.7S4.
1.-TWO hundred heads of families,
each having an income of $4,000,
totaling $1,000, save under the Mel
Ion plan. $3.50.
''Four hundred heads OF families.
each having an income of $4,000,
totaling $1,O00,000, save under the
Mellon plan nothing"
This marks the line of Demo.
cratic attack. In speeches and In
publicity the Democrats will en-
deavor to- show that the Mellon
plan favors the millionaire to the
detriment Of the poor man.
G. O. p. Answers.
Az opposed to this campaign, the
Republicans will continue their,
drive to show that the present high
rate of surtax actually decreases
instead Of increases the Govern
ment's revenue, for the reason that
persons of great incomes withdraw
their capital and put 1t into tax
exempt securities rather than pay
such high taxes.
This is one Of the main supports
Of Melons program-that q sub.
0tantial slashing Of the rates on
big incomes will draw wealth from
its hiding place and into productive
fields again.
Meanwhile, the Ways and Means
Committee Of the House continued
today its consideration Of the Mellon
plan as written. The expectation
Is that the committee will report
out the Mellon bill with it's rate
provisions virtually unchanged. The
Democrats will bring out q minority
report based on their own plan, and
the vote then will be over the
adoption Of one or the other-with
the possibility always existing that
President Coolidge will veto a bill
that strays too far from the Mellon
principles.
BY International News Service.
A tax reduction program favored
BY the progressive-in e-insurgents Of
the Sixty-eighth Congress was in
troduced in the House today by
Congressman James A. E'rear Of
Wisconsin.
It would take off so per cent
OF the present taxes on incomes
below $4,000, leave the surtaxes
on big incomes where they are
now, and make up the deficit
caused by the reduction on small
incomes by re-enacting an excess
profits tax, a tax on gifts, and q
tax on undistributed profits, includ-
ing stock dividends.
Wants Returns Public.
Frear would also have all tax
returns open to the public, the
same as other public papers.
He charged that Secretary Mellon
persuaded the late President Hard.
Ing to veto the bonus bill last wear
on the theory that the Treasury
already faced a 100000, 900 deficit.
and now. he declared, the Secretary
Of the Treasury has discovered a
surplus Of $4,000 900 on which
''he proposed to cut the little fel.
lows normal tax l and per cent
and the high surtaxes rs per cent"
Starting out with Treasury sur.
plus Of $4,000, ,O0O," said Frear.
"aeHinst which bonus payments
wtll make charge Of $200. 200, 900.
leaving surplus Of $4,000. 900.
the following Il proposed: