Counter Moves

The Democrats in Congress have under way various counter proposals to the Mellon tax reduction. A large block of Democrats favor a soldier bonus, although there is a minority who oppose it. Practically all of them favor tax reduction, but along other lines than those laid down by Secretary Mellon.

Representative Garner, ranking Democratic member of the Ways and Means Committee, is naturally the spokesman of his group in the House. He objects to the Mellon proposal on two chief counts: 1) that it reduces surtaxes on high incomes; 2) that it does not grant to farmers and small tradesmen the benefit of a 25% reduction for "earned income," since that term is limited to "salaries, wages and professional fees."

Among the suggestions which he made for bettering the bill were:

1) Retention of high surtaxes on large incomes.

2) Total abolition of taxes on small incomes (to about $6,000).

3) A tax on stock dividends (this has been declared illegal by the Supreme Court, but Mr. Garner would force the Court to reconsider the matter.)

4) An excise tax on capital stock to discourage stock dividend issues, the rate to be $2 or $3 per $1,000.

5) Restoration of excess profits taxes.

Mr. Garner declared: "I can promise now that I can present a plan which will raise $500,000,000 new taxes with little complaint about it, and also relieve the people of $270,000,000 tax burdens. I would shift $500,000,000 from the shoulders of those least able to bear it and place it where the burden could be better sustained. ... In any bill I write, the principles will be economically sound. I will never do anything to impair the right of property. I am a property owner myself and I believe in respecting that right."

He added several days later: "Evidence is daily coming to light that the nation-wide propaganda to commit the people and their representatives in Congress to the Mellon tax bill, before all of its provisions were made known, is the result of a huge organized conspiracy on the part of the predatory interests constituting special privilege."