Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-03-08

billions thereby promoSed? Had the insur-
gents so wIled, they could have pressed the
Garner plan to passage for in the closely
matched party numbers of the House they
hold the balance of power. But in the final
tug all seventeen of them, including ten
from Wisconsin, went back to the Republic
an camp. SO persisted Mr. Gamers great
expectations. NEVERTHELESS, the Democratic
fight had its effect and was by no means
in vain.
The compromise measure, Which passed
well-nigh unanimously after the Democratic
and the original administration bill both were
beaten from the field, now awaits disposal
from the Senate. It's outstanding feature is
the Longworth income tax rates, which fix
the surtaX maximum at thirty-seven and a
listing law, forty-four Ler cent in the Garner
half per cent, as against fifty per cent in the
explain, and twenty-five per cent in the
Mellon or administration plan. The normal
tax rates in the Longworth compromise ap-
ply two per cent to the first four thousand
dollars, five per cent between four thousand
and eight thousand and above that, six per
cent. Personal exemptions remain as in the
present law: one thousand dollars for single
persons twenty-five hundred dollars for fam
lilies with net incomes not above five thou
sand dollars and two thousand dollars for
heads of families with incomes exceeding
five thousand dollars.
The following accurate summary of the
compromise bill as regards surtax rates, earn
ed incomes, inheritance taxes, and sundry 9TH
er features on which we have not touched
will be found interesting: "The surtax rates
are threefourths Of each bracket of existing
law, Mr. Longworth using as his first bracket
that Of the present schedules which place
per cent tax on incomes between $4,000
and $4,000, and ending with the bracket put
ting per cent tax on incomes of above
100000. Reduction of the last bracket one
quarter per cent makes it 1912 per cent.
Earned incomes as differentiated from money
So IL per cent in the case of wages, salaries
professional fees, including earnings of small
dividends are taxed at regular income rates
whenever the securities are sold An increase
in the present inheritance taxes levies / per
to 40 pr cent on estates of $4,000 and above
cent on estates below $4,000, scaling upwards
The gift tax sponsored by Chairman Green
carries the same rates, in each case there is
an initial exemption of $4,000 The existing
tax Of 8 per cent on automobile trucks Is
eliminated where the chassis costs less than
$1,000 Wholesale and there is reduction
from to Up per cnet of the tax on Access
series. Under the bill board of tax appeals
of from seven to twenty-eight members, with
tenyear terms, at salaries Of $500, is created
to sit in various parts of the country. Va
rious other changes have been made in the
bill since it left the hands Of Secretary Mel.
Ion, including his suggested Tightening Of the
tdA laws III OTuef 10 prevent eVdS1OnS, and
also cuts in the excise or nuisance taxes The
ways and means committee estimated that
$10S,000,000 worth of these had been elimi- |
mated. Taxes theater and moving picture
admissions were cut to 1 cent on each 10 !
cents, with an exemption below so cents.
Taxes on telegraph and telephone messages
were thrown out of the law" j
The battle over tax reduction is not vet
done All major items of the compromise
measure will probably be contested in the
Senate. President Coolidge is said to be much |
dissatisfied with the Longworth maximum
surtax rate of thirtyseven and half per
cent, and still to be strongly in favor of the |
original Mellon plan. Some observers predict |
that if the bill came to him in its present |
form it, would be vetoed The likelihood is.
however, that all sides at last will manifest |
a spirit of accommodation, and come to |
constructive agreement.