Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1924-05-15
NEWS REVIEW OF
CURRENT EVENTS
Senate Changes Tax Bill to
Accord With the Views
of the Democrats.
BY EDWARD W. PlckARD


TT LOOKS as if the Republicans
must go before the country in the
Presidential campaign with a tax re-
duction law mainly of Democratic
fashioning. This if the changes in the
house measure made by the senate are
sustained in conference and if 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 senator's and the two Warmer
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 $4,000. and per cent above
$4,000.
Under the Simmons surtax schedule
rate of l per cent applies on income
between $4,000 and $4,000, instead of
per cent between $4,000 and $12,-
600, as in the Mellon plan, and 1 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 36 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, 50 per cent between.
100000 and 100000, 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 a fourth of / per
cent to 40 per cent. This would be a
substitute for the Ii 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 a tax of / per cent up. to
$4,000 shall apply, with a graduated
tax on larger amounts up to maxi
mum of 36 per cent of the amount in
excess of $5,O00,O00 These rates shall
be increased by % per cent in the case
of a transfer to a brother, sister,
nephew, or niece Of the decedent. The
rates are increased by so per cent in
the case Of a transfer to any other
person. Exemptions are $4,000 for
husband or wife, $4,000 for a parent,
child. adopted child or grandchild, and
$4,000 for others.
It is said in Washington that while
President Coolidge strongly disap-
proves of the changes in the bill made
By the senate, he is not likely to veto
it. He hopes some of the Objectionable
features will be removed in confer
ence, especially the corporation tax
substitute and the amendment provid-
ing for full publicity of tax returns.
CENATE and house conferees on the
~ immigration bill agreed upon the
feature providing complete exclusion
Of japanese immigration after July 1
next, and then, yielding to the earnest
arguments of President Coolidge,
changed their minds and decided to
recommend postponement of exclusion
until March i, 1925. This would give
the State department time to negotiate
with Japan for exclusion by treaty,
which would mollify the citizens of
the island empire considerably. The
provision for exclusion as agreed on
IS in the following language:
"This subdivision shall not take eff