The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-11-26
'PUSSYFOOT ACT
MAY BE- STAGED
ON TAX POLICY
Each Party Wants Other
to Speak First, Thus
0odging Blame.

~ Scrtpps-HOisdrd Newspaper Alliance
WASHINGTON, Nov. 26.-In or
DER to avoid responsibility for for
mulating tax increase program
the Hoover administration and house
democrats may engage in an AL
phonse-and-Gaston game on pre-
sentation Of a definite schedule oil
increases is concerned.
Although Andrew w. Mellon. sec
rotary Of the treasury, has indicated
ne would like new taxation anC
economies because Of a prospective
deficit of $4,000 100000 by June 80
1882, he has been reticent in dis.
cussing details. Mellon will not ever
give his plans to members of con-
gress.
Representative John N. Garner
Dem., Tex, who may become house
Speaker, is equally reticent. He
and his aids are rejoicing at the
prospect that the administration
may have to assume responsibility
not only for urging additional taxes
but also for saying what forms Of
taxes shall bear the burden of ar
increase. Garner does not intend tt
make public his ideas until Presi-
dent Hoover, in his message to con-
gress, formally proposes new taxa
ton.
Doubt Is Raised
The Hoover-Mellon course, how
ever, has raised a doubt as tc
whether the treasury will submit a
definite schedule of rates, as was
done with the famous Mellon taS
plan in 1922. It is probable the
President simply may point out the
threat of 100000, 900 deficit, and
ask congress to make its own study
Of the situation. In that case, Gar
ner and the Democrats might be
forced into position they do not
care to take.
1t was Garner who obtained
radical revision of the first Mellon
tax schedules, and the secretary OF
the treasury has been loath to cross
swords with the Texan ever since
ogden L. Mills, under secretary OF
the treasury, frequently has had al
tercations with Garner when both
served in the house, and, though the
two are the best of friends Mills
knows the metal of his legislative
foe.
The situation further is com
plicated by the fact that influential
Republicans in the house, including
Representative Isaac Bacharach, of
New Jersey, and Representative
Bertrand H. Smell of New York
seem to disagree with some of
Melons ideas.
Wealthy Bear Burden
The congressman insist the veal
thy bear most of the burden, while
Mellon favors broadening the base
, of taxation, Smell also thinks that
$500,00O0O0 rather than $1,000 0O0,-
900, as Mellon suggests, is the most
that can be raised by taxation.
Roughly, Mellon is understood to
want higher surtaxes, increase in
the inheritance tax, levies on semi
luxuries and certain articles able to
bear a tax. But he also favors in
.creasing taxes on small incomes,
and cutting the exemptions for both
married and single men. He be-
lieves a large sum can be obtained
through this method from incomes
of less than $4,000.
Garner is said to favor a higher
surtax, possibly per cent over
100000, larger inheritance taxes,
gift taxes, higher corporation tax
and levies on semi-luxuries. His
idea of "semi-luxuries" probably will
differ a great deal from MELONS.
The Democrat, as we'll as most of
his associates, are opposed to i'm
posing heavier duties on what Gar
ner calls the little fellows"