Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-01-08
PRESIDENT |NVOKES
PRACTICALLY TEST
ON TAX CHANGES
BY DAVID LAWRENCE
Ueased Wire Service to The Journal
(Copyright 1924

Copyright, 1924
WASHINGTON, Jan. 5.-President
Coolidge has let it be known that he
can not accept the proposals Of the
curbstone economists in congress
who want to revise the Mellon tax
program.
| The president, of course, wants the
Melion program adopted but he is
not atitrary about it. He is for the
n.mendatiCn made by his secre'
tary of the treasury because they
seem TO him to be practical. Any
alternative program must stand the
acd test of practically.
| There are plenty of men IN con-
Gress who think g revenue bill can
| be drawn to suit classes and groups.
Already the suggestions of "compro-
mise" that have emanated from the
radical elements on Capitol hill are
being criticized on the ground that
they seem to be aimed at vote-get-
| ting in particular localities without
taking into consideration the effects
on other groups Of voters.
Mr.. Melons plan is built like a
delicate piece Of machinery. To tin
ker with one part Of the mechanism
throws the whole works out of gear.
Any plan that is offered in congress
in opposition to the Mellon scheme
must be comprehensive proposition
with facts and figures proving con-
cit sivejy that it will get the revenue
needed to carry on the government.
Productivity Basic Need
Thus far none of the proponents
Of substitute measures have fur
nished a single plan which is sure
to give the treasury all the funds
| eeGed to carry on the government
expenses. The productivity OF tax
proposals is, after all, the heart of
tie whole problem and the interest
irg thing about the plan OF the sec
re- airy of the treasury is that it is
based on careful estimates Of the
| .t;ltisticians who have been making
a study OF the income from all sorts
of businesses, investments and sala-
ries in the last ten years. Their es-
Inmates have in the past proved
trustworthy and have been confirmed
in almost every essential.
When the administration, there
fore, says it can reduce the present
! high surtaXes to about 25 per cent
ard sustain only a slight loss, but
can show that the effect of the re-
ductiOn in other classes of income is
actually to increase the revenues,
the critics find themselves with the
burden of proof on their side.
WoOs Pubic Opinion
The president is adopting q kind OF
strategy which is unlike that Of his
Predecessor, Mr.. Harding, ard is
more like tina of Mr.. Wilson or Mr..
Roosevelt. Instead Of waiting for a
measure to go through congress be-
fore indicating his disapproval and
C> crossing the veto power, Mr.. Cool
idge is getting into the fight at the
very moment when the tax bill has
not even been fully considered by
the house ways and means commit
tee. This is because Mr.. Coolidge
knows The value of public opinion
and jLst at this moment he feels the
country is behind him and that he
will be sustained if he let's congress
know that will be wasting time if con-
slderation is given to impractical
measures.
| Amendments and changes in the
Mellon plan there will surely be.
No tax bill ever came from the ex-
ecutive branch of the government
without being altered in many re-
| soects in congress. Amendments that
| help clarity or improve the mea sure
will be accepted by the administra-
| ton even though these changes are
suggested by the Democrats. But
| the test will be whether a change is
constructive or destructive. Mr.
Coolidge is ready to veto any bill
that imposes further burdens on the
country or fails 10 give the American
people the full benefit Of the $780,
| 100000 surplus. .
DEMOCRATS PREPARE FOR
FIGHT ON SURTAX RATES
! WASHINGTON, Jan. 5. Demo-
cratic leaders Of the house are pre-
pairing to launch fight against a
number Of the important provisions
| Of the Mellon tax bill. among them
the proposal to reduce Surtax rates
to maximum of 20 per. cent on net
incomes exceeding 100000.
| Minority members Of the ways and
!
have agreed that the maximum sur
tax rate should be ~ per cent of
incomes in excess Of 1000. Exist
ing law fixes the maximum at so per
cent of incomes exceeding 5000, 900.
| They are counting on the aid of the
| insurgl-.e Republicans,
! Among other amendments favor
ed by the Democrats is said to be
one providing for more sweeping re-
peal Of nuisance taxes.
| With President Coolidge known to
oppose any alteration in the es-
sential provisions of the Mellon
bill, or any compromise involving
its principles, Republican leaders in
| the house today continued their eff
forts to put off action on a soldiers
bonus measure until the ways and
means committee can decide not
only on the administrative features
of the tax bill, but also on the pro.
posed rate changes.
The presidents attitude was made
| known at the White House yester-
day, but it was said he did not
plan to bring pressure in support
| of his views upon individual repre-
sentatives and was confident that
congress, in acting on the bill,
would translate into law the will of
| the people.
Efforts to get some affirmative
| action on the whole revenue law re-
| vision program prior to a show
down on the bonus appear to have
| made some progress in conferences
between steering committee leaders
and Republican members of the
house who have been demanding a
| party conference to instruct the