Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-11-18
INSURGENTS BEGIN
HOST|L|T|ES AGAINST
COOLIDGE TAX PLAN
BY DAVID LAWRENCE

Especial Leased Wire to The Journal-Copy
right, 1920
WASHINGTON, Nov. 15.-The
tactics of the Coolidge administration
have left open the door to insurgent
Republicans and Democrats to press
for a revision Of the tax laws at the
December session of Congress. The
administration is making it plain
that the present law should be per-
mitted 10 operate and no changes
| undertaken until after July, 1925,
but already some Of the leaders who
have returned say congress will not
be bound by such policy.
Just at the moment the admins
tration is aware Of the hostile ele-
ments in congress and prefers to let
things alone until the new house
and senate come into power in De-
cember, 1925. But the opposition
party in congress is sure to take the
initiative instead and although a bill
drawn by a coalition Of insurgent
Republicans and Democrats could
sill be vetoed by the president and
probably fail of passage over his
veto. still the political consequences
of such an act would weigh heavily
with those responsible for blocking
taxing reform.
The truth of the matter is the adj
miniStration is fearful it can accom-
p'ish very little in the reduction of
high surtaX rates with the present
congress. In other words, the treas
ucys idea of tax reform which has
been accepted by the president is
that scientific revision is one
which affects the larger incomes and
stimulates business. The insurgent
Republicans and democrats, in fact
substantial majority in both
houses, took the other viewpoint at
the last session and they are going
to take that same viewpoint again.
namely, that government finances
reveal a surplus and this should be
distributed SO the people with small
er incomes could get the benefit of
it. One factor which has been intro
duced into the situation and which
probably was not foreseen by the
administration, was the impression
made by the publicity of tax returns.
Congress has been showing a ten
dency in recent years to get after the
persons of large income so that more
taxes might be collected and the bur-
dens of the numerous small taXpay-
ers relieved.
Political capital was made in the
last session of congress out Of that
theory of taxation and the present
tax law is the direct result While
some reduction was given to persons
of large income, the benefit of the
surplus was really bestowed on the
several million taxpayers who earn
less than $4,000 a year.
Under the circumstances the adj
ministration is hardly disposed to
take the initiative and will prefer to
remain on the defensive. But the
opposition party will not be content
to accept such policy and if it were
for no other reason than to appear
before the public as being much more
interested in the small taxpayers
than the administration the effort
will be made to revise the law re-
CARELESS of how successful 1t might
be.
Question of Tactics
Had the administration, on the
other hand, taken the offensive and
presented its Mellon plan once more
with an argument for revision along
scientific lines so as to remove from
the small taxpayer the indirect bur
dens imposed upon him by a system
OF lnequftable taxation, there would
have been built up a case for veto
Of any alternative plan.
1t is a serious question of tactics
whether the administration will be
able to maintain its position without
at least acquiescing in the introduce
ton by administration leaders of a
25 per cent horizontal cut. 1t will
not be necessary to wait until July,
1925, to know just what the estimat-
ed government receipts and expendi-
lures will and a horizontal cut will
probably be urged upon the admins
tration by some of its own friends /.
congress.
All that can be said at the moment
is that the statements issuing from
authoritative quarters declarin
there will be no tax revision recon-
mended is confined only to the ex-
ecutiVe branch of the government
and is no index of what congress will
do, or at least try to do.