San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-13
nate and House Will
Reach Compromise on
Surtax Rate.
EAR MELLON FIGURES
nal Rate Will Be Between
Is and 81 IL, Is
Belief.
By DAVID LAWRENCE.


wright by The San Antonio Light.
Washington, ID. c., April 12.-Thc
look for tax revision is not as
couraging as it may seem on the
face.
announcement of the details of the
mocratic plan sponsored by. Sena-
Simmons of North Carolina, bears
predictions made several weeks
that the Senate would reveal a
re conservative attitude as a whole
tax matters than did the House
that the leaders who felt it neces-
y to get some bill rather than none
oush the lower branch of Congress
led wisely.
For again this year as in previous
sions of Congress, the real tax bill
being written in the Senate with
prospect, of course, that in con-
ence between the two Houses some
portant changes will be made in
general scheme.
Tracing the maneuvers of the radi-
IS and conservatives in both parties
|m the beginning. it is significant
t the fight on high surfaces has
Proved down much nearer the Mel
rates than was originally believed
bsible.
The insurgent Republicans in the
use started out with an extreme
Pgram which meant virtually no
hinge in the present surtax rates.
e Garner plan was a cut to a
cent surtaxes as against the %
cent recommended by Secretary
lion. The compromise offered. by
preventative Longworth and ac-
pied by the Republican insurgents
s at 81 IL per cent.
May Compromise Again.
Now the Democrats in the Senate
tead of sticking to A per cent
e have taken practically the Long
nth plan with notifications and
is the fight will be in the Senate
ween the 81 IL per cent rates
sed by the Democrats and insurgent
publicans and the % per cent rate
opposed by Secretary Mellon and
Eed By the regular Republicans.
In order to avoid the appearance
surrender to the Democratic lead
hip, the regular Republicans may
20 to abandon recommendations of
Senate finance committee and
bpose a compromise Mt 81 per cent
thereabouts, which, if accepted by
radical wing in the Senate would
Ike it easier TO get compromise in
Inference with the House later on.
e chances are, therefore, that there
be 30 per cent surtax when
bill written into law.
Simmons Plan "VOte- Getter.7
But the juggling of maximum, rates
not so much what concerns the
.sons who pay surtaxes rs the ex-
point at which the progressive
.reases in rates are imposed. Thus
Simmons plan starts the surtax
one per cent on incomes between
600 and $4,000 and proceeds up
I'd at the rate Of an additional one
cent for every $4,000 until $685.
% when there are irregular increases.
[r example between 100000 and
Zoo, 00e, there is a tax of 36 per
hit, while between 100000 and
00.0 CJ the tax is only one per cent
ditional, namely. 81 per cent. The
Ee between 100000 and $500 900 is
per cent while between 100000
Ia 100000 it is 30 per cent and
incomes of 100000 or over pay
maximum of 40 per cent.
while the Republicans point to this
heme as a "vote- getter," what they
billy mean is that the Democrats
I've looked up the statistics and
lind the number of persons who pay
rtaxes within certain brackets is
tger than others and they have
rem the larger groups the benefit of
3 lower rates and imposed the
[ximum only above S500.000. Mr..
lions maximum of % per cent
build have applied above 100000,
{ there is no chance that the per-
ls of large income will get off with
low n rate as that. Neither the
urgent Republicans nor Democrats
either House would permit it.
Compromise to the End.
The real opportunity for approach
4 the Mellon rates is on the in
mes below 100000. The Demo
itic plan offered in the House by
/. Garner proposed O greater reduc-
n for all persons with incomes be-
" $4,000 than did either the Long
birth or the Mellon plan. The
fmocrats in the Senate have, in n
neral way. followed the Garner plan
Il have changed the rates in higher
hckets in order to make up what
peared to be estimated deficits.
The question of surtaxes has become
d a matter of maximum rates but
what point in the scale of individ-
I incomes these rates shall apply.
lie taxpayer of large income should
happy, it is contended, that the
hate didn't 60 the House, one bet
in the domain of radicalism by
opposing higher rates than the
buse bill.
The action of the Democrats makes
certain the Senate will enter the
Inference with the House with a
ver schedule of rates than the
Sngworth bill and that the law final
passed will carry rates lower than
measure recently passed by the
buse though somewhat higher than
e bill that will 60 through the
mate. In other words the COM
omise process will be carried to the
~ end.