Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-27
DAUGHERTY AND SMITH SORE ]
BECAUSE NOT IN ON $33,0OO,000'
DEAL, MISS ST|NS0N'S STORY
PROMPT ACTION ON REVENUE
and SOLDIER BONUS MEASURES.
PREDICTED BY PARTY LEADERS

Washing ION, MdrCH So--ITeulCllOn
that the revenue and soldier bonus
bills would be reported to the senate
by the finance committee within two
weeks and that action on the meas
ures would be speedily Forthcoming
was made by Republican leaders as
the committee proceeded with a
study of both bills.
With the floor fight approaching,
Democrats worked over the income
tax schedule which they will offer
as a substitute for the Mellon rates,
leaders indicating some notifications
would be made in the Garner scheme
supported by the house Democrats.
Some intimated the maximum sur
tax rate of Al percent in the Garner
plan would be cut to 40 percent with
a general revision of the brackets to
which the various rates would apply.
The immediate attention of the
committee was conferred again today
on the variance in estimates as to
the cost Of the house soldier bonus
bill. The American Legion present
ed an estimate of $3,300,000,000 on
the probable cost of the measure in
comparison to the $4,850, 100000 esti-
mate OF Joseph Mccoy, treasury ac-
tuary. and the estimate of $2,119,-
100000, made by the house on the
basis of report by the veterans
bureau actuary, H. Z. Brown.
The committee has called upon
army and navy officials to present
data on the exact number of veterans
who would be entitled to the bonus
of paid up life insurance policies
and on the average length of service
Of veterans, on which the actuaries
disagree.
The other main point of difference
between the actuaries as to whether
the government will have to account
for the interest on the funds which
1t must use to pay for the policies,
will be worked out by the committee,
which then will decide for itself,
Chairman Smoot said, what the esti-
mated cost of the bonus will be.
The committee resumed work to-
day on the revenue measure. clear
ing up some of the remaining ad-
ministrativc provisions, after which
the only other sections of the bill,
the miscellaneous tax schedules. viii
be taken up.
Leaders of both parties have been
quietly sounding out their forces on
the income tax rates issue. Repub-
licans intimate that they have some
Democratic votes for the Mellon
rates. while Democrats are counting
on the support of several Of the
Republican insurgent group
leader of this faction, has not an
nounced his plans. but Senators Nor
ris of Nebraska and Brookhart of
Iowa. of the group, have declared
openly for retention of the present
percent. A greater reduction in the
normal rates than provided in the
Mellon plan. and for liberal eXemp-
ton" The Mellon scheme provides
for no change in the exemptions al
lowed in the present law.
Both of these senators also have
declared for re-enactment of the
excess profits tax. This is practical
~ the plan advanced by the Re-
publican insurgent group in the
house. The house group supported
the Democratic plan when their own
was defeated but later switched to
the Longworth compromise with Il
maximum surtax of 81 IL percent
when the normal rates were cut.
If the senate insurgents should
swing to the Democrats, the out
come would hinge on the number
of Democrats who would support
the Mellon rates. In view of this,
Democratic leaders are drawing their
substitute rate schedule with q view
to harmoniZing the various elements,
admitting that several of the party
are in favor of he lower surtax rates.
Senators Bruce. Maryland and Bay
ard, Delaware, Democrats. are
counted among the doubtful class.
Some Democrats are also consid-
cring a modified form of the excess
profits tax in the shape of a grad
uated scale of rates for the corpor-
alton taxes in place of the fiat II IL
per cent tax in the present law.
Senator Jones, of New Mexico, a
Democratic member of the finance
has been working out
such a tax. but leaders generally
have frowned upon such a scheme.
Senator Jones is considering eth
er a graduated tax on earnings of
based on invested capt.
tai with a normal rate of six per
cent or a normal tax on the total
income of corporation tax payers
with a graduated tax on undistri-
buted corporation incomes.
/. Chairman Smoot said today the
night sessions of the committee
would be resumed later this week.