Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-24
SIMMONS VICTORY
OVER c. D. P. TAXES
IS PRAISED HIGHLY
Most Remarkable General
ship in Generation Shown,
Lawrence Says
BY DAVID LAWRENCE
Especial Leased Wire to Tie JournaL)
DOWNRIGHT. 1921

lCOpNrlSHt, IJ-t''
WASHINGTON, May pa little
general from North Carolina-Sena-
+, tor Furnifold McLendell Simmons
has outmaneuvered the the entire
Aepublican leadership, including
FPresident Coolidge, Secretary Mellon
and the legislative managers Of the
Republican party in congress. For
though the Republicans are in con-
troll of congress, tax bill written by
the minority-the Democrats-will
become law.
Senators Simmons, perhaps the
most experienced man on tax matters
in the upper house and one who has
tee in the preparation Of the reve-
nue. acts of previous years, was as
sisted by the strategy Of Represen-
tatiye Garner, Democrat, of Texas,
in the house. Together they have
put through a bill that President
Coolidge will sign, chiefly because he
1duHOL dl1OIu " NelO IL. LIS ODJSC-
tionable features-the publicity of
tax returns and the undisturbed
profits tax-have been eliminated
and one suspects now they were put
in there in the first place for trading
purposes so as to insure the reten-
ton of the Simmons rates when the
Remarkable Victory
1t is one Of the most amazing leg
islative developments in a genera
ton. The Democrats, Of course,
were aided by the insurgent Repub-
licans, without whose votes the Sim
mons rates would not have prevail
ed, but the Republican leadership
had the same opportunity as the
Democrats did to win these insur-
gents. The regular Republican lead
ers privately are disappointed. for
they could have written the type Of
bill Senator Simmons offered, but
they were restrained by the desire of
the president and the secretary of
the treasury that record vote be
obtained on the Mellon plan.
The chief difference between the
Mellon proposal and the Simmons
rates is that persons with incomes
running up to $4,000 a year will get
q greater reduction in taxes under
the Simmons plan than under the
Mellon plan. Over $685. and run
nlng to 100000, the reductions
would have been greater under the
Mellon plan, though Il re is really
only slight difference Above
500, 900 however, the differences are
material.
The Mellon plan would have cut
the taxes of the persons of larger
income, the theory being that such
a procedure would help business by
stimulating capital to go into pro-
ductive enterprises. Senator Sim
mons introduced as a counter pro-
posal the idea that under his plan
more individuals would benefit
some $500, 000-and argued that the
persons of larger income were not
suffering now. AS between the two
ideas. the insurgent Republican
group chose to follow Senator Sim
mons
Reduction This Year
All parties were agreed on the
plan to give the taxpayers flat
Is per cent reduction on taxes pay
able this year on 1928 incomes. 1t
has been retained in the bill. ap-
proved by the conference commit
fS, which will become law. This
.yproVides that a taxpayer on June
Is. next. will not pay the same quar-
terly installment which he paid on
March 10. Instead, he will be
obliged to pay much less. For in
stance, if his total. tax bill for 1923
was $1,000, and therefore he paid a
fourth on March Is, he will subtract
the one-fourth reduction granted by
the new law, which makes Il final
tax of $3.50, and he~will credit him
self with the $3.50 already paid in
March so that the balance due the
government will be $500. which can
be paid in installments of $166.66
each on June Is, September Is and
: December Is.
Here is table which shows what
taxes will be payable during 1925
on incomes received during 1924:
Total Present Mellon Simmons
Ian 20