Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-06-05
COOLIDGE To MAKE
PARAMOUNT ISSUE
OF NEW TAX LAW
BY DAVID LAWRENCE
Especial Leased Wire to The JOurnal.l

dent Coolidge ntenQS 10 make
paramount issue Of taxation in the
coming campaign. Signing Of the
tax bill does not preclude his appeal
to the country for the election Of a
congress which shall support his
views.
Mr. Coolidge will insist that tax
reduction could have been greater
that the burdens on the many mil
lions Of people who pay indirect
taxes could be lifted, and a much
more productive measure framed.
Responsibility for the imperf ions
of the bill will be placed squarely
on the Democrats. To the claims
of the latter that they have given
the country a bill which favors the
small taxpayer instead of the in
dividual with large income the Re
publicans will not enter their dis
sent, but they will point out that
the failure of congress to adopt
certain recommendations Of the
treasury will hamper instead of
stimulate a reduction in the cost Of
living.
The president proposes to tie up
the defeat of the surtax proposals to
the general business conditions of
the country, arguing that a free
flow of capital would have meant
more industrial expansion, better
wages, more employment and eco
nomic progress. The idea that ev-
cry taxpayers private affairs may
be open to everybody else also is
counted upon as ammunition for the
stump, because it is not limited to
persons of large income, but includes
everybody.
Repeal to Be Asked
Mr.. Coolidge Will' ask the Deem
Der session of congress to repeal
certain provisions Of the new law
and to amend others. His request
would have more weight, Of course,
if he happened to be reelected, for
the congress chosen next fall does
not come into power until Deem
Der, 1925, unless a special session is
called after the present session eX-
pires on March 4, next.
Imperfections of the bill could be
removed in the December session
and still affect the incomes received
by taxpayers during 1924, for the
first payment is not due until March
Is Of next year. At best the treas
ury can delay publication of income
tax returns until they are fully col
the department may even delay pub
LEGATION until the returns are fully
audited, which sometimes take three
or four years.
AS for the gift taxes, this is
bound to be one of the more bitter
ly contested features of the new
law. The presidents admission that
it is Of doubtful legality" which
means that he believes it may be
unconstitutional. will be seized upon
for test cases. The theory that a
man cannot give his own daughter
q. wedding present without being
subject to tax and that he cannot
give presents to members of his own
family without paying a tax is re-
garded by the treasury as an in
vasion of personal liberty and rights
upon which the electorate may we'll
ponder this year.
Many LOopIfoles Stopped
Mr.. Coolidge's decision to sign
the bill was not a surprise. 1t does
not contain material reduction in
taxes for large number Of people.
There are many persons in congress
who already are expressing the
opinion that the new measure viii
bring a surplus instead of a deficit,
and that a further cut in taxes
may be possible within the next
two years. Certainly the new law
will be more productive in the sense
that it stops up loophOIes through
which large amounts of incomes
have been kept from the treasury
in the past. The administration fea-
lures of the law are tight and many
a taxpayer who comes out to make
his return will discover that things
he thought he could do under the
old law cannot be done now. Meth
DDS Of computing losses have been
changed, assignment of property TO
trustees has been made subject to
new regulations, and various fea-
lures introduced to prevent tax
avoidance.
The administration of the new
tax law will incur an increased ex-
pense to the treasury, for it is a
complicated document. 1t probably
will delay the auditing Of returns
considerably, as the changes in the
bill are fundamental in character
and will require in some cases the
application of an entirely new prin
Ciple. The auditing Of returns is a
slow process ANYHOW. but the bur
den on the treasury experts now
has been increased and it will be a
long time before the taxpayer will
know whether his return for 1924
has been finally audited. The in
come tax lawyers hereabouts are
smiling with Clee-the new bill
means more fees for them. q $ it will
take Il lawyer to understand some
of the provisions Of the new legis-
lation.