New Britain herald., 1926-12-04
TAX REFUND PLAN
 DOOMED TO DEFEAT Congress Expected to Disap-
 prove of Coolidge Program FAILS TO YIN SUPPORT
Bacharach Declares It Would Be Outright Gift to Large Corpora tions-"Farm" Element Expected to Register Opposition.
BY GEORGE Fl. MANNING

partial refund of federal taxes to take care of the present treasury surplus, and the baking will not be confined to that portion of the senate and house represented by the additionally unruly democratic donkey.
 The treasury surplus has been like a hot potato in tender hands. Something has to be done with 1t, and that something must please all the classes and groups which con- tributed to its making. President Coolidge recently came forward with the suggestion that it be peeled, sliced and served to the taxpayers Of the nation in the form of a partial refund on last years income tax. His suggestion raised salvo of com- ment, much of It adverse.
 While it is doubtful if the presi- dent will embody this particular rec ommendation in his annual message to congress next Tuesday, 1t is be- lieved that he will advocate some temporary tax relief measure along similar lines.
 Both Sides Disapproye
 A review of opinions and com ments expressed by members of congress who already have returned for the opening of the short session indicates that the refund proposition will meet with strong opposition on both sides of the aisle. The posi- ton of democratic leaders is epi- tomizod in the statement of Repre- sentative Garrett of Tennessee. min ority leader of the house.
 "I do not think there Is the slightest chance of the administra- tion's proposal of tax refund being enacted" Representative Garrett said, but if the ma aiority will make a genuine move toward tax reduc- tion all along the line they can de- pend upon the minority for sym pathetic cooperation"
 A number of republicans take the stand that, while the federal government Is some 1880 000,0oo to the good on the books tltis year, there is no assurance that the sur plus in tax receipts will be con- tinued next year. and congress would be severely criticized if it ef- fected a tax refund now and was forced to raise taxes to meet the needs of the government year later.
 The president had q group of re- publican leaders at the White 'loul" the other day for a conference on the tax and surplus questions. Among the group at least two Representative Green of Iowa, chair man of the house ways and means committee. and Representative Bacharach of New Jersey, an in lluential member of the committee were opposed to the Coolidge pro- posal of tax refund.
 Gift to Large Interests
 Representative Bacharach de- clarcs that a refund on last years
 
 plication, to an outright gift to the large corporations of the country. Such a refund. he says. would go principally to these big corporations who are the largest contributors in the way Of federal taxes. and the corporations already have included this tax paid on last years income in their business calculations for the year. and have passed the charge on to the public. With the tax rasscd on by this time to the con- sumcrs of corporation products, g refund now would amount in effect to pure gravy" for the big sorpora- tions. in the opinion of Mr. Bach arach.
 Representative Green takes the position that the farmers and the people in the west realize that the money would go mainly to the big business interests in the event of refund on taxes, and they see no prospect of benefit for the farmers CT the little fellows" in the pro- posal.
 A majority Of both parties in both the senate and house, it Is be- teved, will oppose the administra- tons plan or any other plan for re- funding a percentage of the taxes already collected unless it provides for paying the greater part of the treasury surplus 10 the little fel- Jews" who paid but small amounts but felt the tax heavier than the "big business" corporations.
 Fear Constituents
 The members of congress repre- senting the rural" districts would subject themselves to severe criti- cism if they voted for any plan 10 rebate the larger part of the big treasury surplus to the corporations. The farm" representatives in con- sress can be depended upon to op- pose any refund plan because the farmers" would get no part O. it-- and there are sufficient farm" representatives to hold the balance of power on this question.
 Congress is almost certain to turn down the Coolidge refund plan and allow the s3SO,o ,oO0. 900 treasury sur plus to go to retirement of the national debt which mounted to huge figures during the World war. Reduction of the national debt. while unspectacular, is an effective method of tax reduction over long period, With interest accruing regularly it costs the public less In the long run to retire q government bond now than later.
 Copyright 1928, General Press
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