Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-02
LARGER REDUCTION
STILL URGED IN
DEMOCRATIC BILL
Minority Would Make 1923
Rate 2 Per Cent and Ex-
ennpt Incomes Of $4,000
and Under

WASHINGTON, Jan. st.-Reduc-
ton of the 1923 personal income
taxes which are payable this year on
| the basis OF the Democratic tax re-
vision scheme which would cut the
normal rates to 2 per cent under $5,-
900 and per cent under $4,000, was
proposed in a joint resolution pre-
scented to the house today by Repre-
sentative Garner, Democrat, Texas.
Chairman Green, Of the house
ways and means committee and
author Of the proposal adopted by
the Republican members of the com
mittee yesterday to cut the 1925
taxes about rs per cent as part of
the general revision bill. objected
to immediate consideration OF the
resolution when it was asked for by
Mr.. Garner.
Mr.. Garner pointed out that if the
resolution were adopted 100000
taxpayers would be relieved from
making income tax returns on March
Is, whereas under the plan suggest
ed by the Republicans the reduction
in 1928 taxes could not be approved
before March Is as it was incorpor-
ated in the revenue bill.
The Democratic tax program would
increase the exemption for single men
to $4,000 and of married men to 49,
900 and revise the surtaxes on
graduated scale up to a Al per cent
maximum.
The Green plan would allow flat
reductions on all income taxes.
In Directing to Mr.. Gamers plea
for immediate consideration of the
proposal, Mr.. Green congratulated
him on your happy after thought"
Secretary Mellon regards as prac-
teal and feasible the plan of Repub-
lican members of the house com
mittee to make the proposed in
1928 payments. He believes the step
would entail no difficulties on the
treasury.
Under the optional plan Of paying
taxes in four instaliments, probably
80 per cent of the taxpayers take adj
vantage of the privilege of retaining
moneys that might otherwise be
turned into the treasury in d lump
sum on the first taxpaying date. The
mechanics of dealings with retro
ion would be largely a paper trans
action, consisting Of the placing by
the treasury of a credit to the tax
payer on future instaliments Little
cash rebate, he believes, would be in
volved.
The treasury has had no oppor-
tunity to estimate the decrease in
the total government income re-
sulting from the proposed change.
but some officials made the guess
today that it would range around
5000, 200 on the payments this
year if the Is per cent reduction all
along the line on tax rates is agreed
upon as suggested in the ways and
means committee.
A reduction in the 1923 taxes,
which are payable this year, was
voted yesterday by the majority
members, and they decided to work
out an income rate schedule of their
own, according to Chairman Green,
because of the refusal of Democrats
to accept their offer to compromise
and draft a non-partisan plan. Req
resentative Garner, Texas, ranking
Democrat on the committee, insist
ed, however, that the Republicans
naQ offered no COucESLc COMPROMISE
and therefore none had been re-
fused.
The cut in the 1928 taxes came
as a surprise, neither the Mellon
or Garner plans providing for re-
auctions to take effect before this
year. Representative Hull, mem
Der of the committee and chairman
of the Democratic national commit
fee said last night the Democrats
had intended to present a similar
proposal in the form of joint res
olution so that it might be consid.
cred and passed before March 10
when the first installments on last
wears taxes are die