Show GARNERS GARNER'S TAX PLAN CALLED 1 MERE POLITICS Mellon Declares Demo Demo- Democratic Democratic Democratic cratic Substitute Is Unscientific HE CITES LITES TES REASONS Senator COuZ COuZiS iS Chal Chal- Challenges Challenges lenges Secretary iQ Tell Tellof Tellof Tellof of Investments Investments- By GEORGE GIX R Th nOL tES International New s Service WASHINGTON Jan H- H A 19 savage attack on the th Democrats tax reduction plan designed for far It a for his hi own wa WM was made Thade tonight J Jy by y Secretary of o the th Treas- Treas ury Tre-ury ury un Andrew Andr w W V V Mellon Mellan The Th plan 1 li Is political and noth noth- noth- noth nothing nothing ing else l c he h asserted The Th Democratic plan WI 8 wa writ writ- written written writ tin ten by John Jahn M Garner of Texas T and hu ha the united support o of th the tho Democrats In congress It provide for fer great great- greater greater Teat Teat-er er cuts cut on taxation of small emaIl In- In Incomes In Income cornea comes and smaller miller cuts on large arge Incomes than Mellon Illon 1 cd In hIs and Mid leaves the th max max- max surtax at 44 per cent Secretary Mellon attacked the Garner plan as a unscientific and d declared It had been ben drawn lire lire- Irrespective Irre Irrespective of the th general K n r l economic good After Arter discussing th the plan at some om length lenyth In a formal state state- statement ment ho he h paid his respects to the Democratic substitute In the words DIFFERENCE Im E Wo We cemo corn coin now nir to the th funda funda- fundamental fundamental mental menal differences between Mr Garners Gilmers plan and the th treasury tr bill His Is Ia I a 11 makeshift mAkeshift the th trees trees- treasury ury treas-ury ury UT plan Is the th result remit of enc rl-enc ence and ond study HIs Hi seeks ek papu- papu larity popularity by offering a a small direct savIng to most taxpayers the treasury bill Is fair lr to all II classes I His Is I not nat Intended to be b eK tl ct I the tto on the th economic sid side ld of taxa- taxa taxation taxation taxa tion the th treasury bill Js is I designed to tree fr capital and nd to benefit not net only the th Individuals who pay taxes direct but e ery person pron In the th coun court country country try who must pay the th taxes In every purchase It It Is li the th difference between en a apolitical political of handling tax reduction and a business methods method's met had CHALLENGED BY CONGRESS Earlier In the th day Secretary B cr t Mellon Mellan had been challenged by Senator Senater James Couzen Couzens Republican Republican Republican can of o Michigan to reveal his own wealth to the th public and toil tell how haw much h he ha would save eave uv under the reduction of surtax rates rat from frem 10 80 O Oto to 21 5 5 per cent which Is lu one of af the chief feature of the Mellon Mellan pro pre program pro gram So long lone as a you yau have hav entered In- In Into into In Into to the th tb record recard of my Id Couzens will you yau please plea tell tellus tellus us what whet your securities are art how haw much nuch you yau own of each and anel nd how hew much you benefit be by the ye- ye surtaxes proposed by you yau Senator Couzen recently reveal reveal- revealed revealed revealed ed that his hIli hi wealth Is I between 35 it and and that thai In 1920 he paid an income tax of more mare mor than Sinco Sine that time he h has ha put millions Into tax exempt although he h said al In hIs hi leHe to t Mellon Mellan today taday that not all of his wealth was so 0 In-I In in- in invested vested and that he be li had other niH- niH mil lions Invested In real estate and productive enterprises S AGAINST PLAN Senator Benator Couzens does daes doe not nat ap P provo prave the th Mellon Jellan bill on the lh ground that It it allows allow too taa much wealth to esCApe taxation Today Toda I he h reiterated his bli hl challenge to tin tho secretary ry to publicly debate debat with hint hini th the merits merit of th the plan a chal chal chal- lengo which Mellon has ha Ignored Mellon Melton said laid today the th treasury expert had not nt yet been able abl to determIne how haw much revenue the Garner plan would produce but irrespective of thIs the th essential dIfferences between the th plans pIn should be b stated BrIefly said aid Mellon Molon Mr Garner Increases Increase the th exemption af o single men by 1000 and of mar mar- married married ried nod men from fram nOo 1500 to lOO de- de do d pending upon their Income Re He has made mad some eom further re reductions on normal on lower income and mad the th one one- third one thIrd instead of af one fourth a as li La the th treasurY bill surtax rates rat at net income Mr tr Garner Gamer baa ha made road It Re He has thin then rapidly Increased th tb the surtaxes so 10 that at they reach rech the th sante am rates rate as In the th present pris pr- pr mt ent nt law They are continued as asIn asIn aIn In the th present t law until 1100 Is Ii reached and ana a 4 44 per cent surtax then they are abruptly ended ThIs Continued o raKe Peg Three r MELLON EllON COr COMES ES BACK AT fOES Continued rom Prom Page Pogo One compares Ith the plan of fairly spaced In sur- sur surtax sur surtax tax rates commencing at to 25 per por cent at VOIlE W nIE IE WOULD Br ElI by the Increase In e II Garn Garner r effectually 1 from the of or any lix those Incomes below 2000 for singie men muon and onI 3 U for tor married men and she ho con constitute in number moro more than han T t majority of o the total taxpayers tax taxpayers It payers It Is obvious that under th the Garner Ouner plan plin this majority will l be b i In their direct pa mont ment mento to th the tho government to the extent of say gay ay 15 apiece of hot they wo lid mid ps pay under th the y bill The rhe proposed chang change In the surtax rates rateR from front tho the present law lawIs lawis lawIs Is obviously Insincere Tho The enco between 50 80 per cent cont surtax and 44 H Mellon said MM Is ia hardly material and tho the economie effect I of or taxation Is completely Ignored ignored'S Let t Lt us illustrate the 1 character of ot tho the Garner plan by bythe bithe the arguments its supporters mido m mid against the I eaury bill contin contin- I continued continued Mellon Thy They say that uno un- un under dew del th the Mellon plan a Il man with Income makes a of about men each with Incomes of 5 3 a nie ae e only Ro serge the thc pie pie- tu tue e The test let of or course Is what tax a man must mu t pay rho mil mu- millionaire Ire under the Mellon plan will pay a 1 surtax of and an the small Incomes Income 38 25 each eachor or a total of 57 7 The one high income pass pas 40 timos tima tb the tax lax that the small Incomes of equal al- al aggregate amount pay Did the Iho pro pro- pro ponente of ot that argument nt believe they gave ve the thi public tho the hole truth when they thoy made mado It CONCUSSION CONCESSION 1 10 men The present rates of ot tax x aggregating aggregating gating Sating at nt n a a maximum 68 88 per cent are treated as s tho lh they micro ere nOl mill rales rates ot of ta lax tsa Any seduction i t tion flora flom them It Il Is argued Is a great great concession to the rich This I it not true Betor Before the war the thO surtax rite te ot of o 13 per cent at tao to million dollars was ace considered high These rhes high surtaxes c are war and ond nothing IS else Th The war Is over such uch taxes should eraseS erase'S ceAse I Senator Carter Glass Democrat of Virginia himself a former see see- sec sec-r tiry of or the treasury predicted tonight that the Mollon plan would I bo be altered materially before it Is sed passed by congress The Tho Tho t tax measure which con con- con congress grass gress will 1 pass ho he said while accepting In principle the Mellon plan piau will afford greater relict than lie ho has baa proposed to persons persona whoso whose Incomes range from toGO to 60 50 GO It should be understood that congressmen do not Intend to tI the right t of decision to actuaries at 01 the treasury |