Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-21
c. D. P. IS WHIPPED
ON TAX ISSUE AS
INSURGENTS BOLT
BY DAVID LAWRENCE
Leased Wire Service to The Journal.)
lCOnVr, chit. 1921

(Lcased Wire Service to The Journal.}
copyright, 1921
WASHINGTON, Feb. 20.-The
Republicans have lost control Of the
house of representatives. Whether
they can regain it by effective lead
ership is doubtful. The insurgent
Republicans from the west have COM
oined with the almost solid Demo-
cratic strength, and the result is
that the first important piece of
legislation sought by the Coolidge ad-
ministration has been beaten and the
Democratic tax plan substituted.
Over in the senate an almost iden-
teal situation prevails, for the COM
bination of western Republicans and
Democrats has been sufficient to
override the regular Republicans, as,
for instance, in the resolution calling
for the resignation of Secretary Den
by. The Democrats emerge from the
house debate a radical party--at
least their plan is the least favorable
to the people seeking a reduction
of surtaXes on large incomes. The
so-called radical group of insurgent
Republicans was willing to accept a
40 per cent surtax instead of the
Democratic plan for A per cent, but
the regular Republicans wanted 35
per cent, and as a consequence the
Democratic proposals have been in
serted in the revenue bill.
The fate of tax legislation rests
with the insurgent groups in the
house and senate who must finally
be won over before the differences
that naturally will arise in confer
ence between the senate and shouse
can be ironed out and a measure
presented to the White House for
signature.
The Democrats in the senate for
the most part favor the plan of Rep
resentative Garner, of Texas, as
adopted in the house. But there are
Il number of Democrats from eastern
states who will be under conSidera BILE
pressure to vote for lower SurtaXes
They are conservatives al heart and
when the final showdown comes the
Democratic OBJECTIONS from the Gar
ner plan may offset the few Repub-
lican votes that go to the Garner
| plan or one of similar character.
| This means that the senate will write
| Il lower SurtaX rate than the house,
but just how much lower cannot be
| forecast at this writing, though a
compromise at SIS or 81 per cent is
| IN prospect.
The Democrats, however, plan to
| adopt in the senate the same tactics
| they have in the house, namely to
| let the American people know that
the tax reduction affecting the
| largest number of taxpayers is more
extensive under the Democratic than
under the Republican plan.
| Garner Plan a NOte-Getter
! From a vote-getting standpoint the
| Garner plan is a difficult one for
either Republicans or Democrats to
! oppose. 1t reduces taxes on incomes
| up to $4,000 a year far more than
! does the Mellon plan. Above that
| sum the Mellon plan makes a great
! er reduction. The Garner plan re-
| duces the surtaXes below the pres
ent law. but the cut is not as big
as Mr.. Mellon proposes.
! The treasury departments conten-
! ton is that while a relatively small
number of persons pay the high
! surtaXes directly, the indirect cost
| of high SurtaXes is enormous, and
| that the smaller taxpayers bear the
| burden Just the same, an economic
| doctrine that has not vet won its
] battle against the out-and-out politi-
cal arguments. The chances are that
it will set a better reception in the
/ senate, where the administration
| now centers its hope for the essen
! tial principles of the Mellon plan.