Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-09-23
Democrats Propose Reduc-
ton In Normal Levies
On $4,000 or Less
SUGGESTED RATES
First $4,000 Would Pay Two Per
Cent-Tax On Gasoline And Ca?.-
tai Stock Impost 70 Make up Less

Washington, Sept. 23.-Reduction
in the normal tax rates on individual
incomes of $4,000 or less and grad
uated tax of from 10 per cent. to q
per cent. on the incomes of corpora
tions in place of the suggested fla!
rate of Is per cent. were proposed II
amendments to the Republican TAI
Revision bill offered today in the Sen
ate by Senator Walsh, of Massachu,
sets and Gerry Of Rhode Island, Dem.
ocrats, on the Finance Committee.
TO make up the S105,000,000 loss
from the tax on individual incomes II
was proposed that tax of cent a
gallon on gasoline be imposed at the
source and that the capital stock tax
yielding around S60.000,000 annually
be retained. The majority bill provides
for repeal of this tax effective II
1922.
Under the Gerry amendment lndl-
vidual taxpayers whose net income is
less than $4,000 would pay normal
rate of per cent. instead OF 4 pei
cent. on $4,000, as provided IN the re-
vised bill; taxpayers whose net income
is between $4,000 and $4,000 would
pay normal tax of 4 per cent. on tho
excess over $4,000 instead of s PEI
cent. on all over $4,000, and taxpayers
whose net income is between $4,000
and $4,000 would pay normal ta>
of 6 per cent. on the excess over SlU
600, instead of per cent. on the eX'
cess over $4,000.
Incomes in excess of $4,000 wouic
nay at the rate of per cent. on al
over that amount, but. it was explain
ed, they would receive the benefit OF
the lowered normal tax up to Sl5,0OO
The surtax rates as fixed by the Fin
ancc Committee would remain IN
changed.
Under the corporation income tax
amendment offered by Senator
Walsh, the rate on the first 500 OOl
Of corporation net income would be
10 per cent; between 100000 and
100000, Is per cent, and IN excess
of 100000, 20 per cent.
This schedule" said a joint state
ment issued by Senator Walsh and
Gerry, will reduce the tax on the net
income of $4,000 corporations upor
which the Republican majority bill IN.
c,eases the tax from 10 per cent. to IL
per cent, while it increases the tan
on only about 1000 corporations which
have net income of more than SoOO,'
900 each per year.
"The fairness and advantages to a.
49, a1
ration income tax, if the excess profits
tax is to be abolished, are self-ap,
parent. Experts in the Treasury IN.
form us that this graduated income
tax, which we propose in lieu of the
excess profits tax and the flat 10 pei
cent. corporation income tax, will ylelc
an amount substantially equal to thai
contained in the bill Of the Republican
majority.
I'VE believe our program is more
equitable because it provides that cor.
porations, like individuals of smal
incomes shall bear q less tax burdeI
than those corporations with large IN
comes"
Discussing the proposed reduction:
in the normal income tax rate on in
dividual incomes below $4,000. thl
statement said
This change will reduce material
ly the tax bills of over 100000 tax
payers, in striking contrast with tht
republican plan of cutting In addltlor
TO lowering the surtaX bracket, TIT
high surtaxes from taxpayers whost
income is over 100000, which affect
not more than 5000 of the wealthies
class.
THE loss to the Government by ou
plan will amount to about S105 100000
vet the Republican majority, with on
fell swoop, have eliminated the eNces
profits taxes and thereby reduced tn
revenue of the Government S450,000,
600. There should be no reduction o
the substantial character proposed b,
the Republican majority leading {
such tremendous reductions in tn
needed revenue OF the Government j
the interest of excessive profit-mall
ing corporations, without providin
for just and equitable reduction t
the individual whose income is les
than $4,000"
The statement by Senator Walls
and Gerry was concurred in, it wa
announced, by Senators Simmons, O
North Carolina, and Reed, Of Missouri
the other two minority members 0
the Finance Committee now in Wash
ington 1t made general attack o
the Tax Revision bill as reported yes
terday by the Finance Committee. de
claring the measure to be 'unsount
inequitabla and indefens:b.e.