Evening star., 1926-12-02
Taxes and Politics.

Tax leeislatio in the coming ses-
along partisan lines. There seems 10
he not the slightest doubt Of this. An
nouncement ot the plan of the Demo
cratic members Of the House ways
srd means committee for a $780,
NAA. .nNN cut in the Federal tax levy,
while the administration remains ada
n1ant against a. chang in the tax
rates today. has set the stage for
rertest in tho halls of Congress. Out
~ this coptest there will, in all prob
ability. emerge no cut in the taxes at
this time.
This may turn out a blessing In
disguise. For II the surplus now ex-
rected in the Treasury is not tam
pered with. 1t may be used to reduce
the war debt. The reduction of the
war debt Is sound finance and gives
promise Of tax reductions in the fu
ture. IT In not difficult to under
stand, however, that il members of
Congress believe there is to he sur
plus Of more than $500 900, 600 in the
Trea sury. the dema nds for appropria-
tiens for rivers and harbors. for pub
lie buildings and other governmental
expenditures will become dea fleming.
Pressure for appropriations In various
sections Of the country will become
insistent.
The Democrats propose immediate
reduction Of tax rates to absorb the
expected surplus. The President and
his advisers are opposed to such a
reduction. fearing that II 1t he made
not only will the surplus be knocked
out, but II non-forriitous conditions
arise in another year, it may be nee
essary to increase taxes. In the par
tisan battle over taxes now expected
the Democrats will seek to make it
appear that the Republican leadership
is Withholding tax reduction while
they support IL; they will declare that
the purpose Of the administra ton is
In wait until the eve of the next ma
tional campaign and then hand the
people tax reduction. when, as
matter Of fact, II could be made i'm.
mediately
The Republicans will clamor for
thrift and caution in the finances OF
the country. They can. Of course,
block the Democratic plan for tax
rate changes. The Democrats. on
the other hand. can block the Presi-
dents proposition that the taxpayers
he given a credit on the pa ayment of
their taxes for the present year. 1t
begins 10 look like stalpmate. with
tn. taxpayers holding the bag. A
rrystalliza ton of sentiment among the
people for the Presidents plan or for
ths Democratic plan might have its
effect. however. In short ses-
sion of Congress the chances for leRis.
lstion are slim when partisan politics
enters the debate
Some day, perhaps. the Democrats
will awake To the fact that any tax
reductions made during the admins
tration Of the Republicans and while
they retain a ma iority in the Congress
will he credited To the Republicans
The party in power can always claim
successfully legisla ton which is en-
scted during its supremacy. The Re
puhliCans have had the best OF the
breaks in the considerat ton and enact
n'ent of tax legislation during the last
ak years. This had become so evil
dent that at the last session the Dem
ocrats virtually permitted tax reduc-
ton 10 be considered in a non pa rtisan
wsv Rut the minority party, appar-
emily. has now determined to 60 back
TO its old tactics.
The wisdom Of the early payment
~ the war debt has heen we'll sold"
- the country. There is compara
lively little sentiment in favor NJ the
reltcv ~ the Democrats to temporize
az delay debt payments in order to
et~e the taxpayers ma ximum Of re.
euctten at this time.