The Minnesota fiery cross. (St. Paul, Minn.) 1924-19??, 1924-05-16
news REVIEW OF
CURRENT EVENTS
Senate Changes Tax Bill to
Accord With the Views
of the Democrats.
By EDWARD w. PicKARp


TT LOOKS as II the Republicans
i must 90 before the country In the
Presidential campaign with a tax re-
duction law mainly Of Democratic
fashionlng. This II the changes In the
house measure made by the senate are
sustained In conference and IL the bill
is not vetoed by Mr.. Coolidge. The
Democrats then would have gained
one of the big political advantages for
which they have been striving.
With the aid of the radical Re-
publican senators and the two Farmer
Laborites, the Democrats In the SEN
ate last week forced the acceptance OF
the Simmons substitute tax bill by the
committee of the whole, In place Of
the Mellon plan. 1t fixes the surtax
maximum at 40 per cent, and the nor
NAL tax rates at 2 per cent on net In
come up to $4,000, 4 per cent between
$4,000 and $1,000, and 8 per cent above
5000.
Under the Simmons surtax schedule
a rate Of 1 per cent applies on income
between $4,000 and $4,000, instead of
1 per cent between $4,000 and $12,-
600, as In the Mellon plan, and per
cent between $4,000 and $4,000, as in
the present law. The rates then adj
vance by ! per cent in intervals of
$1,000 and $4,000 until SO per cent is
reached on income In excess Of $4,000
and not in excess of 100000. A rate
Of 81 per cent applies between $780,
600 and 100000, 80 per cent between
500, 700 and $500, 900, 80 per cent be-
tween 100000 and 100000, and 40
per cent on that portion Of income In
excess Of 100000.
Next the Democratic-radical Repub-
lican combination put into the bill the
Democratic graduated corporation tax
and the Democratic substitute for the
estate tax. The former provides that
corporation earnings be subject to a
normal tax Of per cent, and undi-
vided earnings In excess Of specified
exemptions would be subject to sur
taxes ranging from fourth Of l per
cent to 40 per cent. THIS would be q
substitute for the IA per cent fiat tax
already approved by the senate In lieu
of the present tax Of 1914 per cent on
corporation earnings, and the present
capital stock tax, which is TO be re-
pealed.
The estate tax Is changed to an in
heritance tax, and provides that on a
transfer to a husband, wife, child,
adopted child. parent, or grandchild of
the decedent tax Of / per cent up to
$4,000 shall apply. with graduated
tax on larger amounts up to maxi
mum Of 80 per cent of the amount In
excess Of S5,0OO,OOO. These rates shall
be Increased by 25 per cent in the case
Of q transfer to brother, sister,
nephew. or niece Of the decedent. The
rates are increased by so per cent in
the case Of transfer to any other
person. Exemptions are $4,000 for
husband or wife $4,000 for a parent
child. adopted child or grandehild, and
$1,000 for others.
II Is said In Washington that while
President Coolidge strongly disap
proves Of the changes In the bin made
by the senate, he Is not likely to veto
II. He hopes some Of the Objectionable
features will be removed In confer
ence, especially the corporation Ia,
substitute and the amendment provid
ing for full publicity Of tax returns.
CENATE and house conferees on IN,
- immigration bin agreed upon thu
feature providing complete exclusion
Of japanese immigration after July
next. and then. yielding to the earnes
arguments Of President Coolidge
changed their minds and decided I,
recommend postponement of exclusion
until March I. 1925. This would giv'
the State department time 10 negotiate
with japan for exclusion by treaty
which would mollify the citizens o
the island empire considerably. Tn
provision for exclusion as agreed oI
n In the following language
This subdivision shall not take Fl
feet 40 90 exclusion until March
i02S, before which time the Presiden