The Washington times., 1925-06-29
IS
To FAVOR GUT
IN TAXES
Will Urge Reductions First,
However, for Those With
Small Incomes
Nv WILLIAM X, HUTCHINSON.

BY WILLIAM X. HUTCHINSON.
Lower taxes for the rich, but
lower taxes for the poor first"
This is the tax reduction slogan
Of the Republican independently
surgent group which holds the bal
ance of power in Congress,
It was revealed recently by the
late Senator Edwin F. add Or. OF
n. Dak.), one of the Insurgents
ousted from the Republican party
councils, and seconded by Senator
Charles L. McNary OR. of oreg.),
leader of the so-called Independents.
Although there may be dissenting
voices to the program. these spokes-
men reveal that the balance OF
power" will NOT enter the tax bat
tie opposed to reducing the taxes on
n1illionaires. They will insist. low
ever, that the average wage.earner
be given another slash In his tax
burden before any attention Is
given to his weather. neigh5or.
This was their position two years
ago, when their balance OF power"
spelled doom to the Mellon plan.
Change Attitude.
This year the group will enter
the tar lists q little more friendly
to the heart of the Mellon plan
the proposal to reduce surfaces to
IS per cent maximum. Two years
ago they fought this proposal bit
terly and successfully. This year
they probably viii accept it, but
only after the little fellow vir.
tually has had his direct Federal
taxes eliminated.
II would not oppose the 25 pei
cent surtax," says Senator Ladd,
IF the revenues Of the Govern.
ment warrant such a reduction
after the little fellows are cared
for first.
IF the Government can get
along with a. maximum surtax of
25 per cent or even of 20 per
cent. after the average wage.earner
lie given a reduction in hts taxes,
! would not object" says Senator
McNary. II really want to see
the surtaxes reduced to a poin;
where they win stimulate industry
without sacrificing any needed rev.
erlue."
Dislike Mellon.
The Insurgents and Independents,
however. will battle against what
they term the Mellon propaganda. .
There is no love lost for the Sec.
rotary of the Treasury. and they
are bitterly opposed to his tax
theories.
Any tax reduction program. "
said Ladd. must go as far as it Is
possible to reduce the taxes paid
hxy al
least with which to pay them, be.
fore any reduction is made on. the
taxes OF those who are best able
to pay.
The claim that. unless taxes are
reduced upon the higher brackets.
there will be unemployment of
labor and a consequent stagnation
Of industry, il untrue. This argu
Knent presents a. singular contrast
TO the statements made. in con
nection with the notation of for.
eign bond issues. that there In
such an abundance Of money in
this country for which profitable
employment cannot be found that
our financiers are compelled to in
vest billions Of dollars Of surplus
funds in foreign enterprises to
finance foreign governments to re-
AADlIlIaIe LHSlE olulIHlSHeu cuETeu-
cIes.''
Consequently, Ladd favored an
exception Of all taxes on incomes
up 10 $4,000 before even discuss
ing surtax cuts.
McNary for Wage Farmers.
Senator McNary feels the two
big problems facing the coming
Congress will be the snrtax reduc-
ton fight and the issue over ex-
empting all incomes under $4,000.
He believes in the latter issue.
that even il the small incomes
are taxed. the tax will be reduced
almost to nothing. The question
will be decided, in his opinion. by
the attitude of the small wage
earners themselves as TO whether
or not they desire complete ex-
ernption.
"There are two opposite beliefs
on the subject says McNary.
Zone group believes we should
grant the $1,000 exemption. relieve
a great army of taxpayers and
save the Government great expense
in administering the law The
other group desires a small tax
in the belief that 1t will keep
these citizens directly interested in
the welfare of their Government"