Evening star., 1924-04-10
REVENUE MEASURE
REPORTED TO SENATE
Smoot to Call Bill Up for
Consideration Next
Wednesday.
MINORITY PLAN IS FILLED
Longworth Income Rates Backed
by Democrats.

The new revenue bill was formally
reported to the Senate today, and
along with it was presented a new
democratic tax plan carrying an in
come tax schedule somewhat similar
to the Longworth plan adopted by
the House and turned down by the
majority of the Senate finance COM
mittee.
The democratic proposal which its
sponsors believe will have the sup
port of the republican insurgent
group. carries maximum surtax
rate of 40 per cent on incomes il ex-
cess of 100000 as compared with
the maximum of 25 per cent on in
comes in excess of 100000 in the
finance committee bill.
Normal income tax rates proposed
in the democratic plan are 2 per cent
on incomes up to $4,000; per cent
on incomes between $4,000 and $4,000
and per cent on incomes above
$4,000. All heads OF families. ire
spective of the amount of their in
come, would be given the present ex-
emption of $500. No other change
in the exemptions is proposed.
Senator Simmons of North Carolina,
ranking democrat on the finance COM
mittee, presented the democratic sub
stitute just after Chairman Smoot
had brought in the majority report
of the committee and had announced
that he probably would call the bill
up for consideration next Wednesday.
~
before then. he said, as senator's
would not have time TO sufficiently
inform themselves of its provisions.
Il am confident" said Senator Smoot.
| that the rate provisions are the only
ones on which there will be decided
dicatcd in the committee where the
bill was considered throughout by the
entire committe2-with no separate
meeting of republican members"
Senator Robinson. Arkansas, demo-
cratic leader, Joined the republican
chairman in the hope that considera-
tion could be begun next Wednesday.
The surtaX rate under the demo
cratic plan would begin at ] per cent
| on $4,000, and would graduate up to
the maximum. The rate on incomes
of 100000 would be 81 per cent. as
against 25 per cent in the Mellon plan
and SO per cent in the House bill The
rate on incomes of 100000 to $780,
UUu WOufu De 90 per c6ll. ana on III
comes between 100000 and s500,00
/ the 80 per cent rate would apply.
In comparison with the Senate and
House surtax schedules the demo-
cratic plan would provide lower rates
! on the smaller incomes, up TO about
| $4,000. On incomes between that
amount and $4,000 the tax would be
| about the same, while on incomes over
| $50, 600 the democratic rates would de-
mand more taxes.
! The revision of the income bracket
/ to which the rates would apply would
! make an entirely different average
; OF tax Pigments all the way up.
! Senator simmons in his plan has
named the exact amount OF tax
which would be due on each income,
sim IMPLYING the computation of the
| surtax.
AS an example. on an income OF
| $4,000 the democratic plan would
call for a surtax of $3.50 plus a tax
of Is per cent on the amount of in
come in excess of $4,000, and not in
excess of $50, 900. The total normal
and surtax which would be paid
under the democratic plan on an in
come of S50.000 is fixed as $5,157.50.
| whereas under the Mellon rate in the
committee bill tax of $6,S57.50
| would be paid on such an income.