Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-10-15

which the treasury department has
furnished the public, there were 1885,
$50 persons who paid income taxes. OF
this number 1859 had incomes of
$4,000 per year and up. The remain
der of the more than four million had
incomes of less than $4,000 per year.
Now what did the Mellon plan pro-
pose to do? 1t proposed to reduce
taxes on the 11,679 big taxpayers 500
and reduce the taxes on the more than
four million small taxpayers only $50.
DO you think such scheme fair and
just to all income taxpayers? Certain
ly not. My friends, it was not only
unfair but dishonest, and every person
who has studied the Mellon plan knows
it. The president and Mr.. Mellon sub
mitted their plan and proclaimed to
the world that they wanted to reduce
taxes. The propagandists took up the
proposition of tax reduction along the
lines of the Mellon plan and came
very near selling 1t to the country.
However. they failed and they will fail
again If the same plan is urged by the
president and Mr.. Mellon In Decem-
Der. What did the Democratic party
do in this fight? We offered as a SUBJ
stitute for the Mellon plan substan-
tally the present law, which reduces
the income taxes on the big taxpayer
and the little taxpayer in the same
proportion.
1.-THE Democratic Party believes
that the Government should tax it's
citizens in accordance with their abil-
1ty to pay. This is not only good
Democratic doctrine but it is sound
economies: That is progressive: That
is constructive. The Democrats will
offer q constructive program when
Congress meets in December which
in my opinion will provide for the
repeal of the automobile and other
sales taxes first and then reduce tax
es all the way down the line in the
same proportion to the very limit
that the needs of thetreasury will
stand. We don't believe in shifting
the burdens Of taxation. We believe
in reducing all taxes. We will also
offer a program for the reduction of
tariff taxes, especially on the things
farmers have to buy. The fact is the
people of America are suffering a
great deal more from tariff taxes
than they are from Income Taxes.
Tariff taxes are at least four billion
dollars q year while Income taxes for
1928 were only six hundred and sixty
three millions; and If you will inves.
tigate the subject you will find that
tariff taxes bear more heavily on
those least able to pay.
1.-THE Republican argument for
high tariff taxes is that If the manu-
facturers of the country are made to
prosper directly that thereby the peo-
pie generally are made prosperous in
directly. They make the same argu-
ment when they attempt to shift the
burden Of Income taxes from the
backs of those most able to pay to
the backs of those least able to pay.
The big fellows are helped directly
and the small fellows are helped in
directly by better business. The
Democrats say in reply. why not help
the average citizen Of America d.
rectly for a while and-let the big
fellows try indirect help and report
in say five or ten years whether they
like 1t.
Coolidge Economy
what else? You have heard a
great deal about Coolidge economy.
In order to keep the record sraight 1
must give you. some facts that can
not be disputed by anybody for I
speak from the record Mr.. Coolidge
heralded the statement thorugh the
press and through the air and by ev-
cry other means that he was going
to cut down the number Of federal
employees. Yet the record shows
that on December 81, 1923, there
were 544.671 federal Civil Service
Employees in the country and
on December 81, 1924. there were
559,97S, of these employees on the
payroll. 1897 more employees on
December 81, 1924, than there were
on December 81, 1928. On June
3Oth., 1925. there were 564,S34 Fed
eral Civil Service employees in the
country. 1886 more on June 30th.,
than there were on Jan. 1st., this
year. What else? Let's take the
appropriations for 1925 and 1925.
The total appropriations Of the Gov
eminent for 1925, were in round
numbers $3,S0O,O0O. The appropria-
lions for 1925 are $3,8O4 ,00O, 900, four
million more for '26 than for '25, and
If we had taken the advice of the
President the appropriations for '26
would have been at least forty mil
lionsmore. The President has a
way of taking to himself all credit
for Governmental economy. The
fact IL that the President sent to
Congress the estimates of his Dir
ector of the Budget which is his duty
under the law. He, of course, urged
in his message that the recommen-
dations of the Director of the Bud
get be carried out by Congress.
What happened? The Congress re-
duced by more than eleven million
dollars the Directors estimates for
this year and thereby saved more
than eleven million dollars to the
taxpayers. For the four years since
the Budget Law has been on the
Statute Books Congress has cut
down the Budget Directors esti-
mates in the aggregate $346, 340,-
39O.42. This Is the record. These
are not my figures but they are the
figures of the Republican Chairman
of the Appropriation Committee of
the House, Martin Madden of I'LL
nois. and concurred in by the rank
ing Democrat on the Committee, Joe
Byrns of Tennessee.
In the Congressional campaign
OF 1875, and the Presidential Cam
paign of 1928, we shall go before
the country on a platform whichde-
clares for even-handed justice for
all taxpayers and MOTOR special ia
vors for a class or group of tax
payers. Our party stands for equal
rights for all and special privileges
to none.
Mr.. Chairman, after every cam
paign when we lose as we have in
the last two presidential campaigns,
the Republican press announce our
demise. But, my friends, a party
founded by Jefferson, on the prin-
ciple fequality and justice before
the law; carried on by men like
Jackson, Cleveland, Wilson and
Bryan is not easily killed. The an
cient Persian, King Cyrus. 1 believe
it was said, the sum of knowledge
was in learning to speak the truth
and draw tho hov. we must foil tho