The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-06-03
MELONS GANG
FRAMING A new
TAX SWINDLE
Will Exempt Rich and
Burden the Rest
~ a staft CoFresponaent.l

WASHINGTON, June 2.-It is still
some months before Congress con-
venes but in order that they may rest
easy this summer and enjoy to the
utmost their European trips and
yacht junkets, administration leaders
are letting "the big boys" know that
all wall be well in the matter of cut
ting down on their taxes next year.
From various Administration sources
there have emanated assurances that
the higher brackets" would receive
tax slashes, but in the past these have
all been more o. less not for direct
quotation.
Tax Program for Rich.
Now comes Senator David Reed. in
private life Secretary Of the Treasury
Melons attorney and in public capac-
ity his abb man and personal agent
on the Senate floor in such matters as
tax cutting and explaining" the
wholesale vote corruption N MELONS
home-state, Pennsylvania, with
frank pronouncement of what it is
hoped the Administration can put
through next session. According to
Senator Reed, who thinks it perfectly
all right to spend some S3,000,000 to
secure a senatorial nomination, the
republicans proposed TO abolish the
remaining inheritance taxes, reduce
by about $2O0,O0O,O00 the corporation
tax and cut to about 10 percent the
surtaxes that the rich pay, He also
hopes to be able to repeal some Of
the so-called nuisance taxes" but
only those effecting the rich, such as
club dues and high admission fees.
Rob the Small Fry.
In simple language Senator Reed,
who next to Senator Smoot Of Utah,
chairman Of the senate finance com
mittee, is the most important Admin
istration member on that all-impor-
tant committee, proposes to give those
Of incomes above $4,000 a huge re-
duetion in taxes, The purpose is two
fold, first to place the burden of in
come taxation on the small producer
and secondly to prepare the field for
a Wholesale "shake-down" Of the rich
for the 1928 campaign.
Reed would say nothing about the
"shake-down" for the 1928 political
fight, but he very frankly declared
that it was time that the rich "were
given tax relief"
in my opinion there ought to be no
reduction Of the rates on small in
comes" Reed remarked, "the exemp-
tons are high enough and there seems
n6 necessity for further reductions in
the rates or increase in the exceptions.
The rates on incomes from $4,000 to
$4,000 are out Of proportion with the
rates on other incomes. This class
has only been brought down about 10
per cent since 1919. The rate on such
incomes is too high and ought to be
readjusted.
Class Argument.
American business would be aided
in 3 reduction in the surtaxes. Money
going to the government in taxes
ought to be released for trade and
business ventures. I favor a radical
reduction in the surtaxes with the
maximum at 10 per cent. I am also
in favor Of repeal Of the inheritance
taxes"
This naive reasoning, according to
Senator Reed, applies only to the
wealthy. That the man of small in
come might use his taxes for "busi-
ness and trade ventures" does not fol-
low, according to Senator Reed.
Therefore only the rich will have their
taxes reduced.
Standing between the reactionary
republican administration and its
plan to give the rich a luscious tax
remittance viii be the democrats, for
the most part equally reactionary and
anxious for big campaign contribu-
tons and the progressives who will be
the balance Of power. They have no
hope for big campaign funds, but they
are with only one or two exceptions,
incompetent to make a strenuous OPP
position fight or ignorant Of the fun
damental issues.
Want Campaign Graft.
AS a matter Of fact as it now ap-
pears, Reeds program, which is that
Of Melons and Coolidge's, is most
likely to get through. Both sides are
hungry for campaign handouts and
the Progressives have neither the CUTS
nor the desire to make the fight nee
essary to prevent. the Doodle. They
will utter a few complaints during the
session and then return to their baili-
wicks and make strenuous campaigns
about their heroic efforts in Washing
ton against the "old party Bosses"
The budget meeting which will be
held June 10 is expected to disclose
that the Treasury expects a surplus
next year of over $500, 100000. Il is
the Administration plan to return
this amount in taxes to those Of "the
higher bracket" incomes 49, from
$4,000 and upwards.
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Rescue in Fire.
Three women, a man and baby
were rescued by firemen and police