New Britain herald., 1926-02-17
POLITICAL COMPROMISE,
 IN TAX BILL

tcItl NoNIlktNlNI.
 IN TAX BILL
 The Senate now comprises SC Re- publicans. 39 Democrats. and one Tarmer~Laborite. But among the Republicans arc four irregulars who usually vote with the Democrats, so that the Senate really has only 59 safe" Republicans, with A Demo- crats and others in opposition. This would be good working ma ajority for the administration were it not for the fact that some of the rcgu- lars are not always regular. This was Illustrated in the type of tax reduction bill passed by the Senate one not conforming with the desires Of the administration as evidenced by the bill passed in the House.
 The House contains @47 Rcpub- lcans, lSS Democrats, three Farmer Labories and two Socialists. The Re- publicans in the House arc much more inclined to be regular" and follow the dictates of the admnis- tration. In the case of the tax bill, however, even the Democrats largely went with the Republicans, as the vote of S90 to only 25 opposed fully showed.
 The tax Dill as finally to be made into law will be q compromise be- tween the House and the Senate. Tho nature of the compromise to be effected within q week In all probability will depend largely upon the power of the administration 10 influence the recalcitrant Pcpub- litans Of the Senate.
 The Senate tax reduction in es~ srnc" is moro like the original | D"mocratic plan than the Mellon | rl"n sponsored by the dominant 1 party. When one considers how the 1 Republicans are in the majority in , thn Senate-on papcr--this is sig l niticant. It means that many Repub- 1 lican senators have grown more in- dependent than formerly and that | President Coollgo has less influence with thom than most citizens thought possible.
 It was the Democrats who origin ally talked of tax reduction total- | ling s500,oo oooQ00. compared with . the Republican plan of sG30, 900, ooo. The Senate went to s456,2G10 0Qo- in reality going 10 S6Qo.000,000, if i the effects of the tax reductions . within two years arc considered, And the Republican" Senate, en- tirely dsrcga rding the Mellon pian, passed this tax cut bill by tho as- tonishing vote of 5S to 2.
 The Democratic plan or what virtually amounts to il, ha>ing triumphcd in the Senato--Iarg"ly be cause of thn adroit tactics of Sena- tor Simmous--it remains 10 be s"cn whether the Republicans in Con- lress. despite their seeming ma ior- ity. can effectively alter tho pros pect. Fortunately "" will not need 10 wait long,
 Secretary Mellon Cavors :hc House bill, but on the other nan1 the Senate bill eliminates th" 's'at" tax. an idpa which ia tNe past las had his approval althou2h not in- clnded in rho administration Iili h" originated
 AGacI, n,orst hinges on @r"'a'r the estate tax will i@ ,1ucH>I in th~ comnromiso bill. "r nhcthDr it VIII Ir rrtajna1, as pro,td'I ly rh. lIou&c bill
 Similar m'eres' k naa.t,l f.. fat. of The capital stock ta>. -,hjcb tItn Senate lk'wlst eliminated tut the Hous~ retained. Tae capital stock tax is one '',i"l upon 'h@ shares and surplus of corporations based on their market value. and Of cours" IS applied 10 all incor- poratol concerns.
 T. is nk,Iy that the compromis" bill will he based largely upon thcs" two points in the tax siructpr,, They are paragraphs in th" bill that ron- tain less political dynamite than | most of tho others eliminated. Samuel Insult, electric power n, a ynatn or ibBrarn cr,g ft,gt m