Dalliance

In the offices of Senators the morning mail began to multiply. This was not so much a harbinger of Spring as an indication the tax reduction bill is now in Senatorial hands. There was some evidence, also, that from their fondness for the bill, the Senators might keep it with them for some time. The bill rested in the Finance Committee.

The Finance Committee deliberate upon it. Mr. Mellon wrote a letter pointing out what he considered to be the faults of the bill as passed by the House: 1) that it would leave the treasury with a deficit, 2) that its surtaxes were still so high that they would destroy the source of revenue, 3) that its allowance of a "reasonable salary" as earned income, in cases such as those of storekeepers would be difficult to determine and it would be better to class all income under $5,000 as earned income, 4) that inspection of tax returns by Congressional Committees would not foe objectionable providing the proceeding were secret, 5) that increased Federal estate taxes are unwise since this is a principal source of state income, 6) that tax on gifts would be difficult to enforce and yield little revenue, although it would tend to destroy the total capital of the country, 7) that miscellaneous taxes should not be cut any more than the expected surplus will allow.

Meanwhile renewed efforts were made to separate the provision in taxes payable this year, from the larger measure, and pass the immediate reduction by itself. The Democrats are in general opposed to such action because it would enable the President to veto the main bill with less fear of political consequences. The Republicans who favor the bill as it stands, also are opposed to the separation because it would decrease the chances of the bill's becoming law. The President appealed for the passage before March 15 of the 25% reduction for this year. But Republican leaders were not eager enough for such an attempt to report a separate resolution from the Ways and Means Committee. Other resolutions of the same type were similarly shelved.

Thus the tax reduction bill tarried.