Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-23
AMENDMENTS ARE!
OFFERED To TAX
REVISION BILE
I IN THE SENATE
May Reduce the LevieS on
Incomes and Make up the
Loss by taxing Gasoline
and Capital Stock.
GERRY WOULD FAVOR
HEADS OF FAMILIES
Persons Who Receive S15-
900 or Less Annually
May Have to Pay Only
Two Percent to Uncle Sam
tBy The Associated press.l


Washington. Sept. 22,-Reduc-
tions in the normal tax rates on in
.dividual incomes of $4,000 or less
and Il graduated tax of from 10 to
20 per cent on the incomes of cor
porations in place of the suggested
flat rate of Is per cent were pro-
posed in amendments to the re-
publican tax revision bill offered
today in the senate by Senators
Walsh, Massachusetts,. and Gerry,
of Rhode Island, democrats, on the
finance committee.
Tax On Gasoline.
To make up the $l05, 100000 loss
from the tax on individual incomes,
it was proposed that tax OF one
cent a gallon on gasoline be I'M
posed at the source and that the
capital stock tax, yielding around
$50, 100000 annually, he retained.
The majority bill provides for re-
peal of this tax, effective in l92z.
Under the Gerry amendment,
taXpayers whose net income in less
than $4,000 would pay a normal
rate of two per cent instead OF
four par cent on $4,000 as provided
in the revised bill; taxpayers whose
net income is between $5,O0O ana
$4,000 would pay a normal tax OF
four per cent on the excess over
$1,000, instead of eight per cent on
all over $4,000, and taxpayers Wnose
net income is between $4,000 ana
$4,000 would pay a normal TAX
of six per cent on the excess oV1
10000 instead of eight per ceR
on the excess over S4,O00.
Surtax Rates Unchanged.
Incomes of excess of Sl5,O0u
would pay eight per cent on al
over that amount, but, it was ex-
plained. they would receive the
benefit of the lowered normal tag
up to $4,000. The surtaX rates
as fixed by the finance eommlttee
would remain unchanged.
Under the corporation income
fax amendment offered by Senator
Walsh. the rate on the first $780,
OO0 of corporation net incoIns
would be ten per cent; that on the
income between 100000 and $780,
OOO would be Is per cent; anu
that on the income in excess OF
S300. 900 would be 20 per cent.
Explains Schedule.
"This schedule" said a state
ment issued by Senators Walsh ana
Gerry. will reduce the tax on the
net income of $4,000 corporations
on which the republican maJoriy
bill increases the tax from ~ pee
cent to Is per cent, While II IN
creases the tax on only about 4'ooV
corporations which have a net my
come of more than $300,0oo eacn
per year. o.,o, 60
more equitable because it provides
that corpora tions, like individuals
of small incomes, shall bear less
tax burden than those corporations
with large incomes
Proposals Discussed.
Discussing the proposed reduc-
lions in the normal income tax rate
ON individual incomes below Slo,-
900. the statement said:
"This change will reduce mate
riallv the tax bills of over 100000
taxpayers, IN slllhlilS NohNA
the republican plan or cutting III
addition to lowering the surtax
bracket, the high surtaXes from
taxpayers whose income Is over
S66, 900, which affects not moro
than 5000 of the wealthiest class.
'1The loss to the government by
our plan will amount to about
s105, 100000. yet the republican
majority have eliminated the ex-
cess profits taxes and reduced the
revenue Of the government $780,
900 900. There should be no re-
duction OF the substantial charac-
ter proposed by the republican ma
ioritv leading to such tremendous
reductions in the needed revenue
Of the government jim the interest
of excessive profit-making cor
porations, without providing for, a
Just and equitable reduction to the
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