The Birmingham age-herald., 1924-01-07

scale of surtax rates is greatly af- fected by the extent to which the cor 3porate profits are distributed or re- tained in the corporation and shopid be increased or decreased accord ingly The proper scale can pest DC ascertained by degrees.
 we are obliged to keep in mind also that surtax rates are to con siderable extent normal rather than actual For example, as income or sl00.00O is subjected to 4S per cent surtax under existing law, but the total tax paid is $30,076, or 30 per cent of the income, instead or the prescribed 4S per cent. The proposed 8a-1 per cent reduction on income derived from personal service as dis- tinguished from property or capita! invested, will only tend to equalize and unearned income, respectively, as is patent from the foregoing recital. Will Relieve Burden.
 "The raising of individual eXemp- lions to s2,000 and $3,000 respectively. will result only in tax losses of be- tween $40, 1000, poo and $50, 100000, but will relieve between SOC, ,0oo and 1,000.- oon individuals who now make tax returns, but paysno taxes on account of deductions allowed, and will also relieve 1,e46,000 laborers and small
 
 lasa than SIP each, not to mention heads of families now in the $2,Oo0 to s. 900 bracket, and will at the same lime relieve the treasury of a tre- mendous burden and expense, where but a small amount of tax is invested.
 with the understanding tha. tariId T tax reduction measures snouid pc kept separate from and should Tn no wise effect the consideration Of internal tax reduction in which we are unalterably of the opinion that substantial and immediate reiie1 should be had from several phases of existing outrageous tariff tax ex- tortions. The present astonishingly high tariff taxes constitute the out standing factor in the existing high cost of living.
 "These monstrous high rates con- stitute a surtax upon the masses even higher than the income sur taxes on individuals. It would not only be absurd. therefore, put II official to pretend to support gen. eral tax relief and to limit the same to a small group of citizens ana to one phase of taxation to the exclusion of tariff taxes bearing so heavily on our 10000, 900 population. A spe- tial reductions on most articles the farmer must buy would give sev. eral hundred millions dollars relief to agriculture. A number of other special tariff measures cutting down the more aggravated high rates in the existing law so as to con tribute generally to the reduction In | the high cost of living and the lower l ing of existing artificial and profi- | teering prices in many essential lines should undoubtedly be considered
 during the present session of Con gress."
 The Mellon tax bill will be further
 considered tomorrow by the ways
 and means committee, and at the
 same time there will be a general discussion of the tax question on the floor of the House. Mir. Garner and Representative Frear, of Wisconsin 1 one of the republican insurgents who has made a study of the tax question for his group, have been allotted time for this discussion.
 O O O
 1 Comprisons Made.
 This comparison of the tax or
 married persons without dependents
 under the Mellon plan and the demo
 cratic plan was made public tonight
 by Representative Garner. It fol. l Iowa.