The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-10
|NS.URGENT.
FACTION
HOLDS
RULE
Coalition Forces Prepare to
Repudiate Mellon Plan for
Democratic Rates
BY WILLIAM X. HUTCHINSON,
International News Service.

BY WILLIAM X. HUTCHINSON,
International News Service.
Facing the probability Of a
Presidential veto, the Senate pre-
pared today to enact a new reve-,
nue. bill based upon rates pro-
posed by a Democratic Insurgent
, coalition, and a reputation Of the
Mellon plan Of tax reduction.
A final vote upon all pend
ing amendments and the bill itself
was to start at 2 o'clock this
afternoon under a unanimous con-
sent agreement.
Then Goes To Conference.
The measure then will go to con-
ference for adjustment of rates
which differ from those embodied
in the Longworth bill. passed by
the House. 1t probably will reach
President Coolidge for executive &C.
ton by the last week Of May.
Two important questions were to
be decided before the final vote.
One was the proposal, previously
endorsed by the Senate, to place
an indirect tax on tax.exempt
securities by prohibiting deductions
from income tax payments Of all
money paid as interest on loans
used to purchase tax.exempt secur.
tiles. Under a Misrepresentation.
many western Senators voted for
the tax and later made a demand
for reconsideration of the vote.
The second was the plan to at
tach the 5000, 900 McNary.
Haugen grain export bill to the
tax measure as a rider" Both
administration and Democratic lead.
ers were opposed to this action but
the farm bloc insisted upon present
ing the grain bill as an amendment.
Negotiations were under way for a
compromise under which the bloc
would abandon it's plan in return
for a pledge that the bill itself
would be considered before adjourn.
ment.
The revenue bill, as finally draft.
ed in the Senate, would differ but
slightly from the measure passed
by the House. The principle DIFF.
ference existed in the maximum
surfaces imposed.
Provisions Agreed On.
Both House and Senate bills
were agreed upon the following
important provisions:
1. A rs per cent flat reduction
on all income taxes for 1923, pay
able during the present year.
2. A minimum normal income
tax of per cent on incomes up
to $4,000, only one.half the exist
ing tax, and a maximum normal
tax of 6 per cent beginning on
incomes of $4,000.
8. An exemption Of $4,000 on
income surfaces.
4. The taxing Of gifts and in
heritances, corporations, with an
indirect tax on stock dividends.
5. Publication of all income tax
returns with provisions for public
hearings on tax appeals.
The principal differences between
the two bills included:
T-Conflicting surtax schedules,
the Senate bill starting at per
cent on $4,000 and increasing to a
maximum of 40 per cent on $500, 900
incomes while the House bill started
with IN per cent on $4,000 in.
comes and rose to a maximum of
375 per cent at 100000.
2-The normal tax rate on in.
comes between $4,000 and $4,000, the
Senate adopting 4 per cent tax
and the House s per cent tax.
3-Conflicting sliding scales on
gift and Inheritance taxes. the
Senate ranging from to SO per
cent and the House from / to 40
per cent.
4-Sharp differences In corpora.
ton taxes, the Senate adopting a
fiat 3 per cent normal tax on cor.
poration earnings with q aiding
scale surtax ranging from 4 up to
90 per cent. while the House paasoA