Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-22
BY DAVID LAWRENCE
(Spe :ial Leased Wire to rhe Journal.)
DOWNRIGHT 1924


Copyright, 1924
WASHINGTON, May 20. - Con-
gress having disposed finally of the
principle that a bonus is due the eX-
service men Of the World war, the
next turn in the tide of events is to
the economic situation which must
result from such policy.
Will tax reduction be imperiiied?
Will business generally be affected?
The administration is not yet pre-
pared to answer those questions, but
if no more appropriations are made
the outlook will not be discoura ging.
In other words. the bonus is just one
Of number of things which the adj
ministration has opposed in connec.
ton with its drive for economy. Here
is the outline Of approximate costs:
Bursum pension bill, $58,000,000.
Postal bill, $100,000,0 900.
McNary-Haugen bill, $4,000 900.
Soldier bonus, $135, 900, 900.
Total, $493 900, 100.
The whole program of tax revision
has been predicated on the idea of
tax bill of the American people. This
means change of approximately
1898, 000,0 900 in all in the fiscal affairs
Of the government, or nearly billion
dollars.
Can't Save and Spend Too
1t is obviously impossible to re-
duce taxes by 100000 900 and then
turn around and spend about $493,-
900, 00D- That's the ansuersin a nut.
shell to the question of whether the
tax program is now in danger. And
by just as much is it the answer to
the question Of whether business will
be affected. Indeed if there is no
tax reduction at all, there are those
who feel that business conditions can
not be affected adversely any more
than they have been under the pres
ent revenue act, and that the tax
proposals of the present year simply
would have improved the economic
condition of the country The net
effect on the business situation would
be to maintain the status quo with
out change in either direction, I'M
less q stimulus should cone from a
settlement of Europ IN problems.
This is the way the conservative
element in the Washington govern
ment looks at the situation.
But the chances are that all of
the $493 10000 outlined above will
A L. ~,
bill has been killed by presidential
veto which was sustained by con-
gress. The McNary Hausen bill
may suffer the same defeat, ana
there is likelihood that the postal
Appropriations will not be as big as
calculated at first. All this should
Z permit of some tax reduction in the
end, but not as big a sum as Secre-
tary Mellon estimated would be pos
sible when he laid before the coun-
try his original proposals which did
not contemplate a bonus or any OF
the other items mentioned in the
table given above.
OF the total sum which can be cut
in taxes, it will matter considerably.
of course, to taxpayers of small.
sized incomes whether the larger
part of the reduction is given to
them or to the persons of larger in
comes The contest on tax sched-
, ules hinges on the number of tax
payers whose bills will be given the
greater cut, but the lump sum
which can be cut from the entire
tax bill has been definitely affected
by the passage of the soldier bonus
bill America can't have its cake
and eat it, to0-that'S the senti.
fro
it struggles now with a revised tax
program.
Less Tax Reduction
1t begins to look as if the tax bill
of the country will not be cut by
much more than half of what was
originally estimated Not only has
congress shown tendency to de.
part from the budget, but tn einev.
liable expenditure for the soldier
bonus was not taken into account
when the tax bills were passed
through both houses of congress.
When the tax bill emerges from
conference it will have to stand the
test of the actuaries as to whether
it will produce the needed revenues
including the soldier bonus The
estimates vary. and it is of course
impossible at the moment to tel
what kind of bill will come out OF
conference. Some of the extreme
cuts in taxes no doubt will be aban.
doned. and mere attention will be
given to protective 'ather than vote
/. getting taxes. Otherwise, the biz
will be vetoed.
Speaking of vetocs. the White
House is likely to send veto tc
congress on the immigration bill
which. however. hasn't enough sup
port to become a law over a veto
in which case a resolution extending
the present act for a year would be
passed. The president is not dis
turhed ever the way both houses
or congress have thwarted his wish
es in the bonus. He is learning
something new every day-and one
thing he has been taught by thi>
experience is that the time TO in
tluence individual senator's and rep
resentatives is not after veto mes
sage has been sent them. but before
they actually commit thmselves OF
- the original vote for first passage