The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-06-23
MELLON To GIVE
HIS TAX PLAN
NEW NAME
Will Try Back door Tactics
! to Get His Ideas Adopted
by Congress

by Congress
TlCo gears ago Congress re-
undated the Mellon tar plan.
This gear the Administration tn
tends to use political strategy IN
.. revising that decision and the out
look is bright for victOry. The
tar program of Republican lead
ers in Congress is repealed IN The
folLo1Vi,tg article: .
BY WILLIAM K. HUTCHINSON,
A revised Mellon plan" robbed
of it's name but carrying all the
tax reductionl features advocated by
Secretary Of the Treasury Andrew
w. Mellon, will be sponsored n
the coming Congress by Administra-
ton leaders.
The principal features OF the new
Administration tax bill will be re-
duction Of surfaces to at least Is
per cent maximum, elimination Of
estate taxes, repeal of nuisance
taxes and modification of income
tax publicity.
Around these proposals the Adj
ministration forces will rally, ac-
cording to Senator Reed Sn1Oot
(Rep) OF Utah, chairman OF the
Senate Finance Committee. His
views are endorsed by Senator
James e. Watson Rep.D Of Indiana.
leader Of the Republican conserv-
atives.
still smarting. however, from de-
feat in the tax war of 1923.1924.
the Administration forces will adopt
brand new kind OF political
strategy-brand new for the Repub-
lican ranks OF Congress.
Try Back Door.
Administration leaders plan to
use the philosophy Of the bill col.
lector who, when he finds no one
will answer the front door, tries
the back door. Two years ago the
Mellon plan was tossed at Congress
with demand that 1t be enacted
without the crossing of a It" or the
dotting Of an Il.
Congress. ever jealous OF It's
Legislative prerogatives, promptly
kicked the bill down Pennsylvania
avenue and wrote its own legisla-
ton. That was the front-door
This year there will be no Mellon
plan. In due time Mr.. Mellon will
tell the world that he has no pre-
arranged bill to hand over to Con-
gress, but that he will be very glad
to confer with all and sundry.
With this announcement. he will
go quietly around to the back door
of Congress, drop a hint here and
word there, and up will spring
the Mellon plan under some such
name as the Administration tax
BILL or the "Smoot BILL" or the
| Greene bill" But it will contain
all the Mellon recommendations
just the same.
SmoOt to Lead Fight.
Senator Smoot will lead the fight
for the surtax reduction. To date
there has been a seeming pre-
ponderance of opinion that the
surtaxes should be reduced, so his
fight may not be at all difficult.
The first thing Congress will
do. says Smoot. will be to revise
the revenue laws. In my opinion
majority of Congress has been
convinced that it will be to the best
interests OF the Treasury as well
as the country to reduce surfaces
TO at least rs per cent, or perhaps
less. l believe the people and Con-
gress as well now feel that the
present high rates are harmful to
business generally and are prevent
ing the proper expansion of new
business"
Smoot also will advocate repeas
of the so-called nuisance or dis
criminatory taxes. Some OF them
~ tat !.
ii the Treasury surplus does not
allow for their complete elimina.
ton. AS 1t is, Smoot anticipates
tax cut of at least $3.50 200, 900,
and the amount of the various re-
auctions, of course, will depend on
this total.
AS for the ordinary wage learner.
he may have to struggle along un-
der his present tax rates unless
the Administration shows a.
change of heart. The Treasurys
Department has not yet endorsed
a cut for the 'little fellows and
Smoot is inclined to follow the
Treasury's attitude
Il doubt the wisdom of increas.
ing exemptions very much.'' says
Smoot. II think that an American
citizen receiving $4,000 to $1,000
a year should find 1t a pleasure 10
pay SIS or so year toward main
tanning the Government. If he
does this he will be more interest.
ed in his Government and i'm its
expenditures"
Smoot also endorsed the Mellon
theory of taking the Federal Gov
eminent out of the estate tax bust
ness. He will sponsor this idea in
the Administrations bill. y
II feel inheritance taxes should
be turned over to the States and
the Federal Government given exclu.
sive right to levy income taxes" he
declares. II see no reason why
such an agreement should not be
entered into by the Government and
the various States"
Smoot likewise will lead a fight
for modification of the income tax
publicity provisions which Secretary
Mellon has condemned.
Monte Carlo TYa0adv