Evening star., 1925-06-14
TAX CUT BATTLE
! SURE IN CONGRESS
Major Parties Far Apart on
Issue of Whether Rich or
Poor Should Benefit.
BY ROBERT T. SMALL.

III hOBERl L. SM.a
The next session of Congress is to
be foot race--a contest between the
Republicans and Democrats as to
which can revise Federal taxes the
widest and the farthest. This is good
news to the man in the street. He is
inclined to shout: "Sic 'em Tige!' and
wait for the beneficent returns.
But to the politicians the situation
Is one fraught with vast pitfalls and
possibilities. The coming session will
close on the eve of a new congress
sional campaign. The Republicans
are determined to get all the credit
they can out of the effect of tax re-
ductions upon the sovereign voters
of the country. The Democrats are
hoping the Republicans will tumble
the ball and that they can run away
with it to a possible goal at the No
vember polls.
All of which means there will be
two distinct plans for tax reduction
fighting for the right of way at the
coming session. Ordinarily the cit
izenry might be alarmed over such
a Legislative situation. Ordinarily,
with the two old parties graphing for
political advantage. there might be a
failure OF needed Legislation But
with the country fully aware that the
governmental budget and the Treas
urY balance will permit Il further cut
IN the income assessments there Is
absolutely no chance that the Sen
ators and Representatives will carry
their squabble to Il deadlock and go
home TO face the music of non-action.
There will be no such contretemps.
A taX-reduction bill certainly will be
passed. and both sides will go home
claiming credit for all that is good in
the measure, and denying RESPONSE
bility for all that is bad. That is the
way with politicians. and the people
seem to like the good old game as
well as the politicians.
Mere Scrap of Paper.
Although the Constitution provides
that all legislation affecting the reve-
nues of the Government shall origi-
nate in the House of Representatives,
the House in the coming fight of the
fiscal giants will be something of an
innocent byStander. 1t will enact a
bill in orderly process very soon after
the Christmas holidays are over But
the House bill will prove a mere scrap
of paper. The Senate will rip and
tear it to pieces. The administration
controls the House and can write the
bill there just as it pleaSeS. Debate
can be shut off in Charley Dawes
fashion at any moment the Speaker
waves his wand, or his gavel. or his
mace, Or~WhateVer it is. But in the
Senate there is a different story to
tell. There the Democrats are girding
for action, and they know that with
the assistance of the so-called Pro-
gressive Republicans, who are mostly
administration. they can force
almost any sort of compromise they
wish. The chances are that the Demo-
cratic members of the finance COM
mittee of the Senate, headed by Sena-
tor Simmons of North Carolina, will
write their own bill from beginning to
end, meeting the views of the Pro-
gressives far enough to command their
support.
Pity the Rich Man.
Possibly the Republican and Demo-
cratic bills may not be very far apart,
but ii will mean much in the next
congressional campaign if any popu-
lar relief from the tax burden can be
attributed to the Democratic Mr. Sim
mons instead of the Republican Mr..
SmoOt
Both President Coolidge and Secre-
tary Mellon, as well as Senator
Smoot, chairman of the finance COM
mittee, are determined that the next
tax bill shall benefit the man with
big income, who was almost neg
leCted in the reduction of year ago
Some of the Government tax experts
believe that the burden already has
been made light enough for the man
in the street. 1t is difficult to con-
vince the sidewalk gentleman that
such is the case, and. inaSmuch as
there are more men in the street than
there are millionaireS. and conse-
quently more votes to be gathered on
the sidewalks than in the counting
houses, ii can be stated as a fact that
there will be no reduction on the So
called higher brackets" without a
proportionate. or at least a material
reduction in the rates to be assessed
against the hard-working middle
classes.
Mellon Gains Ground.
Secretary Mellon, who has been con-
Quoting a quiet but effective cam
paign. has won over a number of
Democratic Senators to his principles
of taxation. however much they may
differ with him in the end as to the
method of application. Mr.. Mellon
Will be more welcome on Capitol Hill
than al any time in the past. He
has made his way slowly but surely
with the solons-even those of his
own party. There was sharp preju-
dice against the Secretary at the be-
SlulllIlS VI HIS ltiin- olu time Send-
tors and leaders in the House re-
sented his views on Government
finance. They felt he might be a
successful banker, but that they knew
more of the theory and facts of Gov
ernment finance than any multi-mil-
lionaire recluSe from Pittsburgh
could teach them Mr.. Mellon was
even referred to once by a Republi-
can leader on Capitol Hill as a ped.
dler with d basket of finance gim-
cracks"
The prejudice has died down now.
Mr.. Melons views will be heard and
possibly needed. But the scramble
will be between the Democrats and
the Republicans for the credit of the
bill as it finally passes. An issue is
needed for the next congressional
campaign.