Evening star., 1926-11-06
Good Politics, Sound Craftsmanship

Whether so intended or otherwise
that he favors and will seek legisla
ton early in the coming session of
Congress providing for a rebate or
refund of from ten to twelve per cent
on the Federal taxes of 1925 will have
- pronounced political effect. IF it is
partisan maneuver, it is a most
efficient one. It will demonstrate anew
to the country that the President and
the tax burden and are proceeding to
cause that tightening by practical
and continued measures Of relief.
But 1t Is not necessarily to be re
garded as a partisan move. It is a
logical continuance Of a policy. The
state Of the Treasury warrants further
lessening Of the impost. A surplus of
about s25O.0O0,00O is Immediately in
sight. That money can be applied to
the national debt or restored to the
taxpayers as not required for Govern
ment operations. Already this calen
dar year heavy cut has been made
in the debt out of surplus. The ad
ministration holds that it is only fair
to divide the surplus between the debt
and the taxpayers.
There are two ways of relieving the
taxpayers of their burden. One is to
reduce the rates for future taxes, and
the other is to grant rebates out of
accumulated revenues. The President
does not approve an immediate further
cut in the tax rates, for there is no
positive assurance Of the continuance
Of the prosperity which has resulted
IN the heavy tax returns during the
past few years. An additional rate
cut might result in a deficit. In event
Of continued good times" such a
further cut may be ordered.
1t IS fairly well assured that the
present rates. if maintained, will con.
tinue to supply the Government with
sufficient revenues to maintain its
operations. both administrative and
financial, in the systematic liquida-
ton of the national debt, even though
the prosperity condition changes. But
If prosperity continues those rates
will cause further accumulation Of
surplus, which must be applied to the
debt or refunded to the taxpayers.
So 1t would appear to be a logical
measure of sound craftsmanship, and
not merely a partisan political move,
to propose refund, or rebate, of the
1925 taxes, leaving for later deter.
mination the question of q further
rate cut. 1t may be possible both to
refund and to reduce the rates.
Should that possibility develop next
year, on the eve of the presidential
nominating conventions and the ma
tional campaign, the benefit of the
pursuance of the policy will undoubt-
edly accrue TO the administration and
the party which it represents.
The political aspect of the an.
nouncement is at once evidenced by
the disclosure that it has been the
purpose of the Opposition" to pro-
pose, Immediately after the beginning
OF the session next month, a $780,
100000 rate reduction. With the ad.
ministration proposing legislation for
refund, 10 be provided for at once
in order to apply on the December
quarterly payments, it will be diff
cult for the Democratic leaders in
Congress to work out method where
by the credit for this relief granted to
the public will not fall upon the Presi-
dent and his party. From the political
point of view, though 1t is not neces'
sarily that which governs, the Presi-
dent has simply beaten them to it.
,,.til he