Evening star., 1924-04-23
DEMOCRATS PREPARE
FOR TAX BILL FIGHT
Senator Jones, New Mexico, Com
pletes Plans Opposing Reinser-
tion of Mellon Income Rates.
BONUS MAY BE DEFERRED
Appropriation Proposals May Pre-
cede Soldiers Measure.

Oouc DolQlerS measure.
! DecIa ration Of the Democratic stand
on the revenue bill, set forth in thu
minority report Of the finance com
mittee filed yesterday in the Senate
! by Senator Jones. Democrat New
| Mexico, completed the prcliminaries
! Tor the tax reduction fight expected
/ to start next week
Ihe Democrats, in addition to wag
| ing a. contest against tho Mellon in
! come tax rates, reinserted in fh. hin
| by the committee in the place o.
i the Longworth compromises schedule
adopted by the House, will seek Ynodi-
| fcation, also, Of the corporation and
! estate taxes and public hearings for
! tax disputes
Although .Senate leaders expected
! TO wind up consideration Of the bonus
| bill today il was planned to put one
| or Two appropriation measures anoad
! OF the tax bin.
! Would Set Bonus Aside.
When the bonus bin was brought
up by Senator curtis Republican
( Kansas. last week. he promised
Chairman Warren Of the apprOpria
! tions committee that IL Tho measure
was not disposed Of within d few
! days he would consent to set il aside.
/ IN taVor OF some appropriation bills.
/ senator Reed. Republican, FcnnsyI-
! wanna, also was promised that tn.
/ Veterans Bureau recodification bill!
! affecting the rules for treatment OF
/ disabled veterans, would be given A.
! early place on the Senate calendar.
| The minority report on the revenue
! Dill characterized th- COmiUittee bill
as fundamentally defective and IN
: ion fI..' rayl IL
assault on the Weldon income tax
| rates reinserted in the measure .ir
| lieu Of the Longworth compromise
| schedule adopted by the House.
| Reviewing the recent history Of
! federal taxation. the report claimed
| Democratic attempts TO curtail the
/ high war taxes were frustrated by
| the Republican majority, while wher
! revenue act of 1927 the Democratic
minority urged greater reductions
| downward, particularly in the normal
! tax
Senator simmons Plan.
! In proposing tn" income tax plan Of
| Senator Simmons, North Carolina,
| ranking Democrat on the committee
| calling for higher surfaces and lower
! normal rates than provided in the
, Mellon schedule. the minority dis
/ claimed any purpose to soak III"
! rich" adding il ''profoundiv believes
/ that in visible wealth the prosperous
/ and those with real ability to pay
/ should bear greater share Of the
! burdens OF the goV-rrl"eUt.'
/ The simmons plan calls for maxi
/ mum surtaN of 20 per cent applica bic
! on incomes Of $5onu01. The Mellon
| maximum suTtaN would be 70 per cent
! on incomes Of 100000 and over.
! whereas the present law calls for a
maximum surtaN Of 80 per cent on in
comes Of 100000 and ore.
/ Considerable support is anticipated
for the simmons plan from Republ-
| can insurgents, while Senator Jones.
author Of the rcport, predicted II
! would be backed by ali but two or
three OF the Democratic senators.
Excise Tax Reductions.
Referring to the reductions made
in the excise taxes, the report de-
| clared all changes were made by the
/ majority members. while the minor
! ity does not deem il necessary TO take
any other position in this brief re-
! port than one Of general policy OF
! disappr"val Of all special excise taxes
originally imposed for raising war
revenue.
AS regards the estate tax. the Dem
ocrats declared in favor of an inher-
| itance tax. thus shifting the tax from
/ the estate Itself before distribution
TO a direct tax on the beneticiaries
after deducting all estate and inner
itance taxes imposed by states
This plan" the report said, would
carry into this field of taxation the
| principle Of a graduated tlN in AZ
cordance with ability to pay while
under the present law the rate a.
! taxation is the same whether there
be one or many beneticIaIics. This
I is unjust
Rate Declared Unjust.
Declaring the flat tax Of Il per cent
on corporation incomes unjust ard
inequitable," the report declared this
fv,t. .F
graduated tax in proportion to re2
ability to pay" The report did not
| indicate whether a graduated tax
| would be proposed on the floor, mere
ly pointing out that sucA propossi
! was defeated by the majority mem
berS in committee.
In connection with the corporation
tax in the bin as reported. II was
declared that corporations ~ pur-
chase of federal bonds. SIS .opo.oOo.-
600 of which are outstanding, could
escape entirely the normal tax De
! cause the bonds are exempt.
1T would seem. therefore, tho
report added. that before any one
connected with tho administration
should denounce the issuance OF taA
exempt securities by states he sholId
first suggest such change il the la"
as would permit the federal govern
meut to tax federal securities IN itr-
cordance with the intent Of the law
which authorized their issuance,
Flags secret Agreements.
Adjudication OF tax disputes nIi
secret as at present. the report d.
clared, affords an opportunity for
favoritism. arbitrary action, fraud
and collusion" An amendment vii
be proposed il was said. providing
that ali tax dispute proceedings, rec
ords and evidence IN connection
therewith shall he public. The un
desirability OF secret hearings lis
shown, according to the report, by
the fact that more than 900 esl-
Moves have been discharged from
the internal revenue service because
of their having been guilty of ono
or more offenstS.'
esRoxie" Asked TO Help