Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-02
RE TROACT|vE TAX n
RELIEF PROPOSED
BY BOTH PARTIES
Minority Leaders Claim to
Have Originated Plan but
Republicans Take Lead IN
Proposing Scheme
BY DAVID LAWRENCE +
(Leased Wire Service to The Journal, J
iubf


Copyright. 1924
WASHINGTON Jan. 81. - When
the American people make out their
income tax returns on March Is of
this year they can count on
straight reduction of fourth OF
the total tax they otherwise would
have paid.
Both Democrats and Republicans
,are agreed on the proposal, and the
only question now is whether the
present law will be amended by a
Joint resolution or whether the re.
duction will be made part OF the
general revision of the revenue laws
which have been under consideration
for several weeks. The method is
not important, for the result is as
sured
In other words, congress. has de-
cided to permit the American people
to cut themselves piece of cake.
Out of the 1928, 100000 surplus in the
treasury fully $225,000,000 will be
refunded in the form of tax reduc-
ton applied TO 1928 incomes
When tax reduction was first pro-
posed by Secretary Mellon, the gem
eral understanding, of course, was
1928 incomes, but would be felt by
the taxpayer for the first time when
he made out his income tax returns
Ill March, 1925. Political leaders
wondered whether a promise Of some
thing that was to happen in 1925
would be remembered when the voter
went to the polls in November, 1924,
and the conclusion reached was that
Il the taxpayers could !, be made
happy when he pays his taxes DUR
ing 1924 it would be of far greater
value, politically speaking, than a re-
duction i'll the future.
Democrats Planned Move
The Democrats planned the same
kind of action. but whether the Re-
publicans thought of it by them
selves or heard of what the Demo-
Gratis intended to do or whether the
minds of the statesmen in both par
ties ran along the same channel in
hard to determine.
The plan on the Republican side
originated with Representative
Green, of Iowa, chairman OF the
mousse ways and means committee.
who obtained the tentative approval
OF Secretary Mellon. of the treas.
ury department, which, of co.,ras.
means the sanction also of Presi-
uSIlI COOllQSe. fffGi4
It's a shrewd move, and will havo
important political effects. Natu-
rally. the treasury department would
ike to see the 25 per cent reduc-
tlon which applies to 1923 incomes
made part of the general tax bill
so that the course Of the latter Will
be accelerated. Indeed, public opin-
ION may now be expected to get be-
mind fhq flxr 40 4.
alleled strength so that the tax.
payer may actually enjoy on March
10, next, a reduction in taxes. The
Democrats will try, OF course, to
separate the new proposal from the
main tax bill on the ground that
1T needs quick action, and that the
tax bill which will apply to 1924 in
comes can be debated for the rest OF
the present year If necessary with
out doing anybody any harm. In
answer to this the Republicans will
say that business should not be kept
on the anxious seat, but should
know definitely during 1924 what
taxes are to be payable in 1925.
AS for the taxes that individuals
will pay next March on their in
comes of 1923, there are many who
pay their whole tax bill in a lump
sum and do not divide it into quar-
terly installments. These persons
would get one-fourth rebate later
on if the new proposal isn't passed
by March ID. On the other hand,
the taxpayers who pay one-fourth
on March Is, one-fourth on June Is,
one-fourth on September Is, and
one-fourth on December Is, would
have the privilege Of emitting one
installment SO as to get the benefit
Of the one-fourth reduction which
they are entitled.
G. O. r. Assumes Lead
The Republicans have taken the
initiative in reducing taxes for 1923.
Botb parties are vyinS with each
other to give The people tax reluc-
ton. Little is heard about TIE
tonus. Mr.. Melons tentative APP
prov al is said to be based upon
be incurred in connection with the
bonus. The Republican leaders real
izs lhat to pass the original bonus
bill would prompt the treasury to
say that the tax reduction was not
rassible. at least for 1923 incomes.
UnCe- the circumstances the Repub-
Leans now are discussing among
themselves a plan for soldier
bonus which is in the nature of a.
paid up insurance policy, put with
out the privilege of borrowing cash
on it as provided in the bill which
went through both houses last year,
bur which Mr.. Harding vetoed
The Republicans would like to get
a bonus bill through. The chances
ATE they will find it necessary to
pass the original bill in order to full
fill pledges already given. but when
the measure fails to get enough
votes to pass over the presidents
veto then q proposal will be made
TO strip the bill OF the cash features,
and enable soldiers to enjoy some
Of the various forms of aid which
do not require an immediate cash
outlay.
Vocational training, 1aad grants
and ether things which it has hisher-
70 been thought would not be chosen
by the ex-service man when cash
was offered would then Become more
attractive. A bill which does not re-
auire a large cash outlay either
now or in the future undoubtedly
would get President Coolidge's APP
proyal so that the Republicans might
go to the country in the coming
campaign with a tax reduction apply
ing to 1923 incomes. Another reduc-
ton applying to 1924 incomes and
soldier bonus besides.