The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-11
SIMMONS PLAN
FOR INCOME TAX
PLEASES
House And Sente Com
promise Is Seen In
Minority Report

WASHINGTON, April 10.-Lines
for the major contest on the revenue
bill in the Eenate were definitely drawn
today by announcement of democrats
of the income tax plan they will pro-
pose as a substitute for the Mellon rates
placed in the measure by finance COM
mittee republicans.
The bill as framed by the finance
committee was introduced in the SEN
ate by Chairman Smoot, who said he
expected TO call it up for consideration
next week. Senator Robinson, Arkan-
sas, democratic leader, Joined Chair
man Smoot in the suggestion that the
bill be taken up by next Wednesday.
The democratic income tax schedule,
introduced by Senator Simmons, North
Carolina, ranking democrat on the fl
nance committee, is radical departure
from the plan of Representative Gar
ner, democrat, Texas, which was sup
ported by House democrats, and APP
proaches very closely the Longworth
compromise rates adopted by the House.
1t provides for maximum surtax
rate of 40 per cent appliabla Sn I'M
comes Of more than 100000. The
House maximum rate was S71a per
cent on incomes over 100000. The
rate on 100000 in the Simmons pro-
posal is 3S per cent. The maximum
rate in the Garner plan was A per
cent on all incomes over $4,000. The
committee bill would make the maxi
mum surtax rate Is per cent on all
incomes over 100000.
To Stand Pat
Representative Longworth of Ohio,
the republican leader, predicted today
that although there is no great diff
ference" in the income rates adopted
by the House and those proposed by
Senate democrats, the House would
stand firm for its rates in conference
even if the Senate adopted the demo-
cratic plan.
Representative Garner, on the other
hand, predicted that House democrats,
who, with one exception, supported his
plan, would give approval to the pro-
gram advanced today by, Senator Sim
mons, declaring it followed ''in princi-
fde" the House democratic scheme "of
larger reductions In the smaller in
comes and lesser reductions in the larger
incomes than proposed by Secretary
Mellon"
Senator Simmons announced that the
plan he proposed today would raise
$500, 5000 more revenue annually than
would the committee bill carrying the
Mellon normal and turtax rates.
Bonus Bill Up
Meanwhile the Senate finance COM
mittee took UP today the soldier bonus
bill passed by the House and which
republicans of the committee have
agreed to support. On requset of dem
ocrats, who asked time to outline pro-
posals they will advance for a bonus,
definite action on the bill was put off
until Saturday. Chairman Smoot pre-
dicted the bill would be approved by
the committee on that day and a re-
port on the measure made to the SEN
ate by next Monday. In such a case
it would be possible for the Senate to
take up the bonus bill ahead of the
tax measure.
Senator Simmons announced he would
propose amendment Of the House bonus
bill to include an option for full cash
payments to veterans. = The measure
calls for such payments to those not
entitled to more than $50 in adjusted
service credit and for 20-year endOw-
ment life insurance uolieies to 0fhers