Evening star., 1921-10-24
GERRY SPONSORS
FURTHER TAX CUT
Rhode Island Senator's
Amendment Discussed
in the Senate.

The Senate. having voted to redur.s
the amount of taxes to be paid after
1922 by individuals having net
incomes ranging from $1,000 TO
s1.000,000 or more, had before il
today the question of cutting down
the taxes on those whose net incomes
are $1,000 or less.
A reduction of 80 per cent for this
class of taxpayer is sponsored bN
Senator Gerry, democrat. Rhode
Island. with the approval and sup
port of the other democrats on the
Senate finance committee. The pru-
posed cut would be in addition 1"
the slight reduction which would
result from the committee recon
mendation trat this class of taN-
pa yers who are heads of families h-.
granted an increased exemption at
$500.
Senator Gerry not only would r.
lieve these taxpayers. but also would
have further reductions made in tho
taxes to be paid by all indiriduaIs.
Specifically. has amendment to th''
pending revision bill would fix the
normal income rates at . per cent oil
the first $1,000 of income: 4 per cent
on the third $4,000 and per cent ON
all over $4,000. The present normal
rate is 5 per cent on all over $4,0Hu
and 4 per cent on the amount of the
income below $4,000. The committc''
has proposed that these rates be r.
tanned.
Walsh Criticises Tax Bill.
Reopening argument on the Gerri
amendment today, Senator Walsh.
democrat, Massachusetts, said there
were two main issues in the pending
bill which condemned it to the coun-
try" These were, he declared, the
relieving of the big profit-makinT
|corporations and wealthy individuals
of a part of their taxes and the fail
ure to grant any substantial relief
to the individual with small or mod
crate incomes.
Under questions by Chairman Pen
rose of the finance committee and
other senators. the discussion wan
dered into the field of corporation
taxes. Senator Walsh contended that
the big profit making corporations
were relieved. whereas the corpora =
tionS making small profits would halv
their taxes increased through SUB
stituti 1 of an increase of per cent
in the corporation income tax for th'4
excess profits tax. Senator PenrossJ
contended that corporations should De
allowed in the years of prosperity u"
make up for 1.-The lean years" when
there was business depression.
Senator Reed, democrat, Missourl' AZ
terrupted to say that the same argu
ment held good in the case of indi-
viduals, but that there had been no
suggestion 10 give the individuals IN"
| same benefits as proposed for the cor
porations.
Walsh Proposed Amendments.
Senator Walsh said the republicans
proposed first to relieve the taxes "ii
| the class of individuals who, Secretary
Mellon had declared, had resorted 10
every device which lawyers could ora"
TO enable them to escape taxation
He declared that ConGress a, eouio no
make these men pay. and that NJ
| would offer two amendments TO that
end. n,,,r.d
/ One amendment. he eNplalneo:
| would propose a tax on every giit OF
money or property during the lifetime
| of a taxpayer just as tax was I'M
| posed when at his death the taxpayer
gave his estate to his. relatives OF
friends. The other, he SAG saad' nNriin', M9uin
| Of estates made up of taN-free securi-
ties.