Evening star., 1927-11-08
Reaction to Tax Cut Program
Forecasts Fight In Congress

The public reaction to Secretary
MELONS taX-reduction program. as
reflected by the press, divides gen.
orally along party lines, although
there are Republican observers who
are disposed to stand with the Cham
Der of Commerce of the United States
for larger reduction than the Sec
retary's proposed $225 900, 900, and
some Democrats who deprecate any
risk of OVERRIDING the scaling down.
The Albany Evening News Gnde-
pendent Republican, remarks: "Of
course there will be a movement to
reduce taxes from $400,000.OO0 to
$500, 100000. And naturally all tax
payers would like large reduction.
Mr.. Mellon would reduce taxes. but
he would reduce them slowly. He is
not offering a revision according to
popular desires, but on the basis Of
what he believes is good, sound busi-
ness for the United States"
Most students of business and
finance" according to the Philadel-
phia Evening Bulletin independent
Republican,, ARE inclined to agree
with him that we are not likely to
60 at the present rate forever. And
the average man. of small income,
knows by experience that there al
ready is a Tightening of the budget
strings" The New York Hera ID
Tribune (Republican) observing "Mr.
Mellon deprecates going too fast and
too far" adds that sit is his duty to
guard against the predicament of a
possible deficit. followed by reimposi-
ton of taxation"
"It is to the credit of President
Coolidge and Secretary Mellon" de-
Al - vi I.a., Nj n a
Journal Republican, that they APP
parentiy have given no thought TO
politics in presenting their tax-reduc- >
ton program" The Los Angeles
Times 0sepubicam offers the com =
ment that folks who get their State
and municipal tax bills are likely to
wonder how Calvin Coolidge ana the
National administration can keep ON
reducing both the Federal debt ana
taxes at the same time. The cities
are all piling up bond issues and are
boosting taxes at one operation,
"Important as tax reduction is,
states the Roanoke World News Gnde-
pendent Democratic), both in repeal
ing the nuisance taxes and in gradual
reduction of the burden on business
it should not be pushed to the point
that will hamper the steady and
orderly retirement of the nation $
war debt" The World-News ex-
presses the view that efforts Of Rep
resentative Garner of Texas and Sen
ator Simmons of North Carolina TO
make a. Democratic campaign issue
out of tax reduction will meet with
little response"
The New York Times independently
feels that "on the whole the plans
worked out by the Treasury will be
felt by unprecedented business men to
be reasonably in line with the policy
which a careful study of present con
ditiOns and indicated tendencies in in
| dustry and trade would dictate"
Good business Judgment" in the
| plan Is commended by the Duluth
| Herald independent Republican,. and
| the Utica ObServer-Dispatch Qndepend
enU holds that "the public would pre-
| fer to see tax reduction made safely.
But Josephus Daniels Raleigh
News and Observer Democratic) in
ssts that: 'In spite of the adulatlon
| heaped upon him, every fiscal proph
ecy of Mr.. Mellon has miscarried
| Senator Simmons said when the last
reduction was made that it should be
| $3.50 100000 more. The presence ol
$500. 900 900 collected In excess oil
needs shows Simmons was right and
| Mellon was wrong The baltimore
Evening Sun independent Democratic
presents figures to show that for the
four years 1924-1927 MIR. Mellon s
estimate has shown n total error OF
| $S26, 900, 900 las to surplus). or al
| average of 81 per cent. If, therefore
the Secretary is running true to form
the actual surplus for 1929 should he
his estimated surplus of 4.000, 900
plus 81 per cent, making total OF
$512. 900 .000."
| II
j. consistently underestimated" is the
; verdict OF the Hartford Times Gnde