The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-11-11
ANDY And CAL
SPLIT ON TAX
REBATE PLAN
Divisions Occur Over
Treasury Surplus
Especial TO The Daily worksrl

WASHINGTON, Nov. 9. - There
were increasing signs today Of repub-
liean differences over President Coo
lidee's proposal for 10 to 12Lz per
cent tax rebate on 1925 incomes,
made possible thru the large treasury
surplus.
On the heels Of Secretary Of the
Treasury Melons statement last
night suggesting that instead of a re-
bate on 1925 incomes the most tea-
sible plan would be to allow a ere
dit" on 1926 incomes, the presidential
spokesman told callers at the White
House today that Mr.. Coolidge still
considered the rebate plan as offer
ing the best solution Of what to do
with the treasury surplus. Thus the
difference of opinion between Mr..
Coolidge and Mr.. Mellon became ap-
parent
C. o. p. Split on Issue.
Presidential Coolidge's proposal for
a 10 or 12k per cent rebate Of this
years federal income taxes faces a
sitter fight to enactment today be
cause opposition has developed with
inthe administrations own ranks in
congress as well as from the republi-
can insurgent group.
The White House plan was attack
ed by Senator George w. Norris, r.,
of Nebraska. leader Of the senate pro
gressives, who declared It would be
poor business management" to re-
fund taxes already paid while the ma
ton was deep in debt. A similar view
was expressed by Senator Charles L.
McNary, R., Of Oregon, a western ad-
ministration leader.
Debt Retirement Plan.
Norris, who viii lead the little band
OF insurgents who hold a balance of
power" In the senate Of the seven
teenth congress, proposed that the
S250,000,00O surplus, expected in the
treasury by the end of the year.
should be used to retire the public
debt
The republican organization mean.
while took steps to initiate work on
new tax bill, whether the legislation
ultimately conforms to the presidents
rebate proposal or to the democratic
demands for a downward slash OF all
federal taxes. The house ways and
means committee will meet here next
Monday and reports have it that tax
legislation will be the first consider
alton.
Play Politics.
Altho democratic leaders continued
to declare in favor Of enacting whole
sale reductions in federal taxes at
the December session, Norris came
out against such a move. His oppo-
sition TO the minority proposals came
as surprise to the democrats as they
had rather counted on progressive re-
publican support for their tax pro
gram. If the views of Norris are sup.
ported by other progressives. il was
pointed out. the democratic plan may
be defeated even tho the minority is
able to block enactment Of Coolidge's
rebate.
BON the republicans and demo
Gratis are trying TO feel the people on
a proposition that ought to be handled
on a business basis" Norris said
Leaders on both sides are playing
politics. This surplus ought to be used
to retire some Of our government
bonds because the people already
have spared the money and such a
course would reduce future taxation
Let's see what is in the treasury at
the end OF the fiscal year, next June
If there is a surplus then, well and
good; we can reduce taxes at the fol
lowing session Of congress
We will send sample copies Of The