The Elk Mountain pilot., 1924-10-23
COOLIDGE BACKS
MELLON SCHEME
would Regard Republican Sue
cess in November as Man
date" to Repeal Pres
ent Law.
WOULD FAVOR MlLLlONAlRES
President Still Wants Reduc-
tion of Surtaxes on Big In
comes, and Opposes Estate
Taxes and Publicity
of Returns.
WOULD FAVOR MlLLIONAIRES

success at the polls on November 4
would be regarded by President Cool
idge as mandate" to substitute the
Mellon plan" of taxation for the
present Democratic law and thus de-
prive small taxpayers of the generous
reduction in taxes they now enjoy
and instead give most of the benefits
to the millionaires and billionaires
Mr.. Coolidge and his Secretary of the
Treasury have frankly favored in the
past.
Partisan Republican newspapers,
evidently speaking with inspiration
from the White House, have repeat
edly published the statement that Mr..
Coolidge's election and Republican
control of Congress will be the signal
for revision of the new Democratic
tax law and the enactment in its
stead of the Mellon scheme. The
Presidents own language in his
statement accompanying his approval
of the Garner-Simmons (Democratic)
bill is taken to justify the prediction
made by Republican newspapers.
Mr.. Coolidge declared his opposi-
tion to the surtaX rates, running to
40 per cent, to the estate tax of 40
per cent, and to publicity for income
tax returns, among other provisions
of the bill, and asserted that the
measure did not represent a sound
and permanent tax policy" In all
the objections he raised against the
new law. Mr.. Coolidge explained, Sec
retary Mellon concurred with him.
Harvey's Paper Hints Plan
The Washington Post, whose edi-
tor in chief is George B. Harvey, is
regarded as the most knowing spokes-
man of the White House on political
subjects. This paper on June 4, two
days after President Coolidge reluc-
family signed the new bill, published
news article in which appeared the
following paragraph:
THE statement [sent to Congress
by Mr.. Coolidgel is accepted as dec
laration by the President of an cleo
ton issue, and in this regard it is
considered likely that II a Repub-
lican Congress is elected and Mr.
Coolidge is returned to the White
House. he will call q special session
of the new Congress after next
March L."
What President Coolidge and Secre-
tary Mellon demanded of Congress
was a reduction of the surtaxes on
the incomes Of millionaires from a
, nf xt
mum of only rs per cent, thus cut
ting the taxes of those with incomes
of 100000 and more by many thou
sands year at the expense of the
smaller taxpayers. This is shown by
the fact that the Mellon Plan" If
adopted as its author and Mr. Cool
idge urged, would have benefited 6109
income taxpayers more than the Dem
ocratic bill, while the latter has act
ually brought substantial relief to
6,656 ,O67 persons more than the Mel
lon scheme would have benefited.
Scheme President Favors
The reduction Of SO per cent. in the
surtaxes on an income Of $4,000
advocated by President Coolidge and
Secretary Mellon. would have meant
saving of $1,300,000 to that lone
taxpayer. At the same time, had
their plan been adopted. the saving to
1866 taxpayers with an average in
come of $4,000 year each, aggregat-
ing $4,000 900. would have been only
$4,000 The Mellon scheme with
which the President wants Congress
to replace the present Democratic
law, would have saved more money to
q taxpayer with an income of 100000
a year-and there are upwards of a
thousand in this class-than it would
have saved to go taxpayers whose in
comes averaged $4,000 each.
Small taxpayers who are now get
ting the benefit of tax reductions
tiven to them by the Democrats of
Congress have special interest in de-
feating President Coolidge and Repub
lican Senators and Representatives at
the election in November. The power
full interests which have been attempt
Ing to force the Mellon plan on the
people will succeed If Mr.. Coolidge and
a Republican majority in the Senate
and the House are chosen. 1t was only
the Democrats, with assistance from
certain western Progressives, that pre-
vented the enactment of the Mellon
scheme in the recent session of Con-
gress.
These rhillionaires and billionaires
for whom President Coolidge and Sec
retary Mellon have fought so hard in
the last fourteen months could well
afford to spend millions to control the
elections in November. The saving
they could thus obtain through the re-
duction of their normal and surtaxes
at the expense of thousands of smaller
taxpayers would make their contribu-