The Birmingham age-herald., 1924-01-06
AGAINST INCOME. AND SURTAX CUTS Soldier Bonus Again Brought To Fore As Petition Is
 Filed

WASHINGTON, Jan. 5.-tBy Asso- ciated Pfess.)-The Mellon tax pro- gram will become a storm center in Congress under plans of democratic leaders. They made known today tha they were preparing or @ sharp fight against the proposal to cut in half the present minimum surtax rate of 50 per cent and in favor of even greater reduction in the taxes on small incomes than had been pro- posed by the treasury secretary:
 At the same time, Secretary Mel- lon made public letter to Senator Couzens. republican, of Micgian. in which he renewed his arguments in favor of maximum surtax of 25 per cent. MT. Mellon declared it was not those who have the capital who are hurt by a system of wartime high surtaxes; that it is the whole coun- try who would benefit by it's produc- tive use who suffer-"
 Let us have diagnosis and cure not autopsy and verdict" the secre- tary said in concluding his letter which was in response to one from Senator Couzens. The Michigan sen- ator had written MT. Mellon that the secretary's communications on sub ject. of reduction in surtaxes did not seem to contain evidence that the reduction proposed would be for the SOOQ or the country as d W iiOiS. TIC added that legislative action in con- formity with the surtax recommen- dations, should be supported by very conclusive evidence" that such a re- duction would have this effect.
 Soldier Bonus Injected
 The soldiers bonus again was in- jected prominently into the tax situa tion today with the filing of formal petitions for a conference of House republicans next Thursday night to decide whether the ways and means committee Is to report bonus bill ahead of tax legislation. Former service men who are members of Congress pressed their demand for a conference despite the opposition gram. A call for the conference pro- babiy will go out early next week.
 The position of Senate democrats on the Mellon plan was outlined by Senator Robinson of Arkasas. the minority leader in the Senate. in an address broadcast to the country to- night from a local radio station. His pronouncement came after confer once of House ways and means com mittee democrats with Representa- tive Garrett of Tennessee, the mlnor- ity leader in the House, at which a comprehensive program is understood to have been worked out. It prob ably will be formally announced ln the immediate future.
 Not The only Rate.
 senator Robinson declared that W nile the proposed reduction in the surtaX rates on large incomes was justified. m part, at least, 1t could mot be demonstrated that 20 per cent is the one and only rate which Will diminish investment in taX-eXempt securities and invite them into indus rt
 Prom what evidence does it ap- >,pcaro" he asked, that a maximum ot 40 per cent levied on incomes above s200.000. will not have similar at- feet to a greater degree?
 As q means of reaching income from tax-exempt securities without amending the constitution, the sena- tor suggested the imposition of trans fer of inheritance taxes which dis tinguished between securities Whlch have borne their fair shade Of tax burden during the decendent's life time and securities or the same Glass which have not.
 Senator Robinson declared that while "propagandist influences un- doubtedly are at work behind the Mellon plan, "an overwhelming pup lie sentiment is behind the movement fo~ tax reduction and this sentiment is based on justice and sound req son..
 o O Q
 To offer Nmendments.
 Chairman Green of the House ways and means committee formally an .uourced today that he would have some amendments to the Mellon plan 'to offer before the committee, Whlch he said had been progressing quite rapidly" in it's consideration Of the . treasury bill. He said he would pro pose q tax on gifts above certain amount. such tax not Delng con . tained in the dratt plH supmltleo os . the treasury.
 .. Also, Mir Green announced that he would seek to tighten up by amend lrent some of the provisions of the treasury draft designed to prevent tax evasion. His proposed change would Dc aimed primarily to prevent taX evasion through reorganization of corporations.
 Among the suggestions considered by the d"y,,ocratic members of the Ways and means committee in pre- naring their program were ones to increase the exemptions allowed un- married persons from Sl,O00 to S2.0n0. and also to increase the eX- emption for married men; to eHteno the learned income" credit of p per cent. proposed in the bill, definitely to farmers and small store proprie.. tors. and to increase the range or pronosed nuisance tax repeals. !.
 O O O
 Agree On 70 Per Cent.
 The minority members of the com. I mittec arc understood to have agreed Tat the maximum surtaX rate should pc at least 40 per cent. some of them favorjng maximum slightly above that figure. There was gen cral agreement a that the normal tax rate Should ',a cut to per cent and either four or 6 per cent, as against the prevailing rates of and s per