Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-04
TAX MEASURE TO SENATE

The decided majority with wnicn
the House turned down the Mellon
bill indicates that the Senate. to
which the tax measure now goes,
will hardly undertake to restore II.
There seems to be nothing In the
record OF this Senate to warrant
such a conclusion. That 1t will en-
deavor to tinker 1t may be taken
for granted: that Is the Senates
fixed habit, with revenue measures
which must originate in the House
as with other measures. but that 1t
will succeed in formulating any
thing much better adjusted to the
needs OF the country cannot con-
sistently be expected.
Whether the President will veto
the measure Is uncertain. IL an
analysis OF the provisions OF the bill
shows they are hopelessly made
ouatc, IL 1t can be demonstrated
that IL will prove mischlevous In
operatlon or fail to produce the
revenue that Is essential 1t Is but
fair to suppose n veto Will be had.
IL the Mellon bill was right then
this surely Is wrong. but how far
wrong remains to be determined.
We do know, however, that 1t has
been framed with regard to what
liz thought a political effect rather
than the effect 1t actually will have
n
the government. The idea that the
rich can be reached by the surtaX.
that the people of small incomes
will be relieved by only so much as
may DO taken from the rate they
ray. persists.
The Democrats framed the Garner
bin on tho basis of the political eff
feet 1t was supposed to have. The
Longworth bill epbodlos n like pur-
pose. The influence of the in
surgents helped the Democrats until
tho Republican measure was made
over to suit them, when they de-
serted the Democrats leaving the
Garner monstrosity high and dry.
II now looks very much as though
the measure on final passage will be
an insurgent measure.
From the following the reader will
find points for making comparison
between the bill as 1t goes to the
Senate and the present law:
Normal rates in the Longworth
compromise which now goes to tnr
Senate--Two per cent on net in
comes not in excess of $4,000. 5 per
cent on net incomes over $4,000 and
not In excess of $4,000 and 8 per
cent above that amount.
Surtax rates-Twenty- five per
cent less than those In the existing
law on the same brackets, starting
mt Ia per cent on the amount of
income in excess of $4,000 up to
$4,000. The maximum rate would
ho 27'a per cent on the amount of
incomes in excess of 100000.
Personal exemptions-The same
as In the existing law. $1,000 for
single persons. $4,000 for heads of
families whose net income is not
over $4,000 and $4,000 for heads of
families whose income exceeds that
amount.
The existing law provides:
Normal ratcs-Four per cent on
incomes not exceeding $4,000 and s
per cent on incomes above that.
Surtax rates-A graduated scale
starting at / per cent on the amount
Of inCoNc in excess of $4,000 and
not exceeding $4,000. up TO so per
cent OF the amount of income in ex-
cess of 100000.
The Democratic schedule. which
was rejected. provided:
Normal rates--Two per cent in
comes up to $4,000. I per cent on
incomes between $4,000 and $4,000
and per cent above that.
SurtaN rates--t;raduated scale
starting at per cent at $4,000 and
up ~ ~ per cent on the amount OF
income in excess OF $4,000.
Personal eNemptions--Two thou
sand dollars for single persons and
$4,000 fer heads of families.
The Mellon plan. also rejected.
provided;
Normal rates-Three per cent on
incomes not in excess of $1,000 and
S per cent ON incomes above that
amount.
- SurtaN rates--Start at per cent
ut $4,000 to n maximum of 25 per
cent on the amount OF income In
excess Of 100000.
No change In exemptions from the