The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-01-12
C. O.P. SUPPORTER
MELLON TAXB|LL
NOT ENTHUSIASTIC
Position Of HOoSier DeIega-
ton Is Still Question as
Plan Is Studied.
BY JOHN CARSON.
Times staff CorrespODdent

BE J3IiAN A<AIkGON.
Times staff Correspondent
WASHINGTON, Jan. 12.-Indiana
Republicans in Congress who stood
so loyalty behind President Harding
in his demand for lowe rsurtaxes,
are not so enthusiastic in their sup
port Of the Mellon tax proposals.
What the delegation will do is still
a question. They now insist they
have not had time to study the va
rlous tax proposals. With the ex-
ception Of two members, Representa-
lives Moores and Wood they have had
a varying position.
When Secretary Mellon first made
his proposals and the entire country
appeared to rise in applause, there
was no evidence OF dissent in the In
diana delegation or with any other
Republicans. Then the incessant
propaganda began to nauseate some
Of the Hoosiers and 10 lrritate 9th
ers. Finally, with the Democratic
proposals. the pendulum has swung
so rapidly against Melons bill, the
favorable consideration is moving in
that direction.
Hull Best Authority
The Democratic plan offered in the
same OF Representative Garner,
Texas, ia really the work OF Rep
resentative Hull, Tennessee. who is
today the best authority in Congress
on the income tax.
Fuu's bin provides a greater re
duction IN income taxes for the small
tax payer. for the farmer and the
small business man. II provides for
greatly increased tax on the wealthy
classes.
And the figures Cor Indiana show
tho few voters in the wealthy classes
and the tremendous number wh 3
would he benefited by the Democratic
proposals.
Indiana Returns Shown
The Indiana returns for 1921 are
the only detailed information. so far.
On the distribution OF taxable wealth
In the state. They show the follow
ing:
Total returns made for income tax
we're 10000. OF this total. returns
of 1882 were from persons having
income Of $4,000 a year or less. Only
1858 persons in the State had an in
come OF more than $40, 600.
The 1887 persons with incomes
OF $4,000 or less paid only $3.199.5I3
in tax to the Government. The 2,sS3
persons with incomes Of more than
10000 paid S5,774,140 to the Govern
ment
The Democratic proposals would
lessen the tax on the 1857 persons
as compared with the Republican pro-
posals. The Democratic proposals
would increase the tax on the 1853
persons as compared with the Re
publican proposals.
Democratic Appeal Greater
Therefore, the Democratic appeal Is
to $4,000 voters and the Republican
appeal TO only 1858 voters.
II IS this reaction which has begun
to make It difficult for the HOLSTERS
in Congress to support the Republican
bill, although the propaganda up to
this time has demanded such sup
port.
Another point is made now the
propaganda ais studied. It is insisted
by the Hoosiers that not exceeding
100 letters favoring the Republican
proposals have come from farmers
or wage earners and all the letters
have come directly or indirectly from
the wealthy classes who would benefit
directly from the Mellon bill.
indiana TRnnr1hlirovS uva ~, ya1O~rJ
however, for reducing the higher sur
taxes In 1921 Congress had a SINH
lar plight to contend with. The House
had voted for a maximum surtax of
81 per cent and the Senate for a maxi
mum of so per cent. To compromise,
President Harding suggested the maxi
mum should be fixed at 40 per cent
and that vote came before the House
The proposal was defeated and ma
tority of the House changed front and
stood for the 30 per cent proposal in
opposition to President Harding's re-
quest,
HOOsiers Supported Harding
The entire Hoosier delegation, how
ever. stood with the President. They
supported the proposal for a 80 per
cent maximum and then for the com
promise Of 40 per cent. They spurned
he progressives and insurgents who
wanted maximum of so per cent.
What caused the change of heart?
The situation has changed. Now g.
very definite opposition has developed
on the tax situation and it Is found on
a clear-cut plan that appeals directly
to the poorer classes. The next thing
is there is a conviction the next cleo
tion viii be a much tougher struggle
in Indiana and will be fought out
around this tax bill. Finally it is
well known Republican leaders are in
more or less a rout as a result of the
Democratic proposals and now they
are talking only Of a compromise.