Maryland independent. [volume] (Port Tobacco, Md.) 1874-current, 1924-06-13
COOLIDGE SIGNS
NEW TAX BILL
Will Seek Amendments at
Next Session
CITES MANY GRAVE DEFECTS
Approves Only Because OF Urgency
Flags Lawmakers For Discard
ing Mellon Rates-Energy
Punished.

Washington. - President Cool.
idge signed the 1924 revenue bill.
Immediately thereafter he is
sued a statement citing its mani
fold and grave defects and ex.
pressing fears for the nations
future economic welfare if another
Congress does not supplant that
which is obviously a patchwork
piece of legislation.
The President attacked the meas
ure, constituting distortion of the
Mellon schedules from numerous
standpoints. His views are concurred
in by the Secretary of the Treasury.
who drew the bill originally submitted
to the House and Senate.
The President made II clear that he
affixed his signature only because of
:he immediate urgency of tax reduc-
tion. the glaring faults of the hereto
fore existing law and the fervent hope
that the new one will not live long at
the hands of the next Congress.
1t was directly charged by the Pres
ident that the bill was tackled together
not on an economic, but political
basis. The President promised to
bend all his energies to bring about
genuine tax reform.
In an aggressive style, reminiscent
of Theodore Roosevelt's best papers,
President Coolidge delivered biting
attack upon the various sections of
the bill, and fiayed Congress for dis
carding the Mellon plan,
Failure to reduce surtaxes to less
than 40 per cent, he assured, means
that Initiative and new enterprise
are throttled"
The enormously high Federal estate
tax of 40 per cent added to the gift
taxes and inheritance taxes levied by
the States, amounts to "a practical
confiscation of capital" he charged.
The provision for publicity Of in
oome-tax returns, he continued, Sac
ridces without reason the rights of
the taxpayers and he believes it will
result in the concealment of mil
lions Of dollars of income which other
wise would be reported"
Among his other sword-thrusts were
these:
"If we are to maintain the American
standard of living and hold our place
in the world, we must adjust our taxes
upon an economic and not political
basis.
"A correction Of its (the bill's) de-
fects may be left to the next session
of Congress. | trust a bill less po-
litical and more truly economic may
be passed at that time. To that end
shall bend all my energies.
"As a permanent expression of
Government fiscal policy this bill con-
tains provisions which, in my opinion,
are not only unsatisfactory, but are
harmful to the future of this country.
Eve are presented with a plan of
taxation which puEishes energy and
initiative and must decrease revenue.
1T is proposed to take capital and
to use it in the ordinary operating
expenses of government. We are thus
to live, not on income. but on prin-
cipal, and TO that extent we exhaust
our resources and prevent the indus
trial expansion essential to our in
creasing population and our high
standard of living.
by far the greater part of the loss
of revenue which will be brought
about by the bill is in income taxes.
"Of the 11O.OOO,OOQ people in this
country, less than 100000 pay in
come taxes directly. The remaining
106 100000 who pay no such direct
taxes are given no relief from what
they pay indirectly in everything they
buy. They, too, must have tax reduc.
ton These conditions the present
bill does not meet"
While the enumeration of the varied
evil features of the bill are in excoriat.
ing fashion. the Presidents reasons
for reluctantly afixlng his signature
to it are set oct mildly and without
passion.
He said:
THE bill comes to me for consid.
Grafton less than two weeks before
the contemplated adjournment OF
Congress, and it provides for credit
on 1924 taxes which should become
effective before June IS No different
bill can be passed before adjournment
The question before me is the present
law or the bill in the shape it has
passed the Congress.
"As | have said, the bill does not
represent a sound permanent tax
policy and in its passage has been
subject to unfortunate influence which
ought not to control fiscal questions
Still, in spite Of its obvious defects, its
advantages as temporary relief and
a temporary adjustment of business
conditions, in view of the uncertainty
of better law within a reasonable
time, lead me to believe that the best
interests of the country would be sub.
earvad 70 fbiq hill hacomas a low