San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-10
ANOTHER TAX
PLAN OFFERED
BY DEMOCRATS
Believe Measure Will Get
Support Of Insurgent
Republicans.
ATrvIy nryY nEnnnTEn
NEW BILL REPORTED
Senate Gets Formal Report
on Measure Carrying
Mellon Rates.
WashingtOn. ID. C.. Anril 1O.=The

washington, ~, u, Aprli 1V.-l ne
new revenue bill was formally report
ed to the Senate today and along with
it was presented a new Democratic
tax plan carrying an income tax sched-
ule somewhat similar TO the Long
worth plan adopted by the House and
turned down by the majority of the
Senate finance committee.
The Democratic proposal. which its
sponsors believes will have the sup
port of the Republican insurgent
group, carries a maximum surtax rate
of 40 per cent on incomes in excess Of
100000 as compared with the maxi
mum of % per cent on incomes in
excess of 100000 in the finance COM
mittee bill.
Normal income tax rates proposed
in the Democratic plan are . per cent
on incomes between $4,000 and $4,000.
$4,000. All heads of families, ire
spective of the amount of their income.
would be given the present exemption
of $500. No other change in the ex-
emption is proposed.
Senator Simmons. North Carolina.
ranking Democrat on the finance COM
mittee, presented the Democratic sub
stitute just after Chairman Smoot had
brought in the majority report of
the committee and had announced
that he probably would call the bill
up for consideration next Wednesday,
1t would be useless to consider it be-
fore then, he said, as senators would
not have time TO sufficiently inform
themselves of its provisions.
The surtax under the Democratic
plan would begin at 1 per cent on
$4,000 and would graduate up to the
maximum. The rate on incomes of
100000 would be 81 per cent as
against % per cent in the Mellon
plan and So per cent in the House
bill. The rate on incomes of 100000
to 100000 would be IS per cent and
on incomes between 100000 and
100000, the 80 per cent rate would
apply.
The delay in bringing it up was
decided unon, Senator Smoot said.
with the hope that all senators vill
be ready then TO present their views
on the few sections upon which con-
trOversy is expected. =
Il am confident" said Senator
Smoot, "that the rate provisions are
the only ones on which there will be
decided differences Of opinion. This
was indicated in the committee where
the bill was considered throughout by
the entire committee-with no separ-
ate meeting of Republican members"
Senator Robinson, Arkansas. Demo-
cratic leader, joined the Republican
chairman in the hope that considera-
ton could be begun next Wednes-
day.
Lower Rates on Small Incomes.
In comparison with the Senate and
House surtax schedules the Democratic
plan would provide lower rates on the
smaller incomes up to about $4,000.
On incomes between that amount and
$4,000, the tax would be about the
same while on incomes oyer $4,000.
the Democratic rates would demand
more taxes.
The revision Of the income bracket
to which the rates would apply, would
make an entirely different average of
tax payments all the way up.
Senator Simmons in his plan has
named the exact amount of tax which
would be due on each income, simplify
ing the cmpoutation of the surtax.
As an example on an income of $780,
000, the Democratic plan would call
for surtax Of $3.50, plus a tax of is
per cent on the amount of income in
excess of $4,000, and not in excess
of So, 900. The total normal and
surtax which would be paid under the
Democratic plan on an income of $780,
900, is fixed at $5137.50, whereas I'M
der the Mellon rate in the committee
bill a tax of $6657.50 would be paid
on such an income. The House bill
would have demanded total of 5000
on $4,000 income.
The Senate plan varies considerably
from the income tax schedules lad
-anced in the House by Representative
Garner, Democrat. Texas. and support
ed. almost unanimously by the party
them.
No change was proposed in the ex-
mption in either the Mellon or Long
worth plans, while the Garner sched-
ule called for increase in the exemp-
tons Of single persons from $1,000 TO
$4,000 and from $500 to $4,000 for
heads of families.
Normal Tax Varies Slightly.
The normal tax proposed by the
Democrats varies only slightly from
those adopted by the House in making
the rates 4 per cent on incomes be-
tween $4,000 and $4,000 instead of )
per cent. The Mellon normal rates,
however, would provide for a 3 per
cent tax on incomes under $4,000 and
q per cent above that amount.
The Garner normal rates were > per
cent on INCOMES under $4,000, 4 per