New-York tribune., 1921-09-23
Derl1Ocrats Ask
,2P. c. Levy on
Small Incomes
walsh and Gerry Propose
Reductions on All Up
10 SIS, 900 and Gradual
ed Tax ON Corporations
surtax Rates Unchanged
Cent a Gallon ON Gasoline
advocated to Make Up
SlO5. 900, 900 Deficiency

WASHINGTON, Sept. 22.-Reduc.
lions in the normal tax rates on in
s;vidual incomes of SIS. 900 or less and
rrsdusted tax of from 10 to 20 per
,ent on the incomes of corporations
IN place Of the suggested fat rate OF
rs per cent were proposed in amend
nents to the Republican tax revision
hsIl offered to-day in the Senate by
senator's Walsh. of Massachusetts, and
Gerry, Of Rhode Island, Democrats, OF
the Finance Committee.
TO make up the $1o5 900 COO loss
from the tax on individual income. IL
vas proposed that tax of / cent gal
lor on gasoline be imposed at the
source. and that the capital stock tax
Welding around s6o,000,0o0 annually
be retained. The majority bill pro-
vides for repeal of this tax, effective
in 1872.
Two Per Cent Up to $1,000
Under the Gerry amendment indi-
y;dual taxpayers whose net income is
Isss than $4,000 would pay a norm al
rate Of per cent, instead of 4 per
cent on $4,000, as provided in the re-
vlsed bill. Taxpayers whose net in
come is between $4,000 and $4,000
would pay normal tax of per cent
on the excess over $4,000, instead of s
rer cent on all over $4,000, and tax
PAYERS whose net income is between
10000 and $4,000 would pay a normal
tax Of 6 per cent on the excess over
10000, instead of per cent on the
excess over $4,000.
Incomes in excess of $4,000 would
that amount, but, it. was explained
they would receive the benefit of the
lowered normal tax up to $4,000. The
surtax rates, as txed by the Finance
Committee. would remain unchanged
Under the corporation income tax
amendment offered by Senator Walsh
the rate on the first 100000 of cor
pcration net income would be 10 per
cent, that on the income between
100000 and 100000 would be Is per
cent and that on the income in excess
Of 100000 would be 20 per cent.
Helps $4,000 Corporations
@This schedule" said a joint state
ment issued by Senators Walsh and
Gerry, will reduce the tax on the net
income Of 10000 corporations upon
which the Republican majority bill in
creases the tax from 10 to Is per cent
while it increases the tax on only
about four thousand corporations which
have net income of more than $780,
900 each a year.
"The fairness and advantages to all
torporations of this graduated corpora
tea income tax, if the excess profits
lax is to be abolished, are self-appar-
ent Experts in the Treasury inform
Is that this graduated income tax,
which we propose in lieu of the excess
profits tax and the fiat Is per cent cor.
7srston income tax. will yield ar
amaant substantially equal to that con-
hned in the bill of the Republican
majority.
we believe our program is more
squitable because it provides that cor.
rorations, like individuals of small
means, shall bear less tax burder
than those corporations with large in.
comes"
A statement by Senators Walsh anc
Gerry supporting their proposal was
eoncurred in, it was announced. BY
Senator'S Simmons, of North Carolina
and Reed, of Missouri, the other tive
minority members of the Finance Com
mittee now in Washington. 1t made
general attack on the tax revision
bill as reported yesterday by the
Finance Committee, declaring the
measure TO be "unsound, inequitable
and indefensible."
Annoying Features Retained
"The BILL" said the statement, ere.
tains and continues in the main all
the annoying and burdensome income
and other tax provisions of the Ole
war revenue bill. The people of the
country want and are entitled to a
peace plan taxation program. Indi-
sdual taxpayers and business have de-
manded since the end of the war a
simple, direct and easily understood
tax law to assist in bringing about a
readiustment of business to normal
conditions. The Republican majority
Of the Finance Committee have not
met this demand"
1t was explained that the statement
issued to-day was in no sense minor
lty report on the bill. A minority re-
port will be submitted to the Senate
later, after conferences of the Demo
Gratis on the committee and of the
Democratic membership of the Senate.
The majority report also has yet to
DC submitted. Chairman Penrose told
sne Senate to-day that he hoped to
nave 1t ready tomorrow. He plans at
that time to call up the tax bill with
View TO having it read and brought
70 immediate consideration.
ID ~