Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-04-10
NEW REVENUE BILL
ORDERED FAVORABLY
REPORTED IN SENATE

WASHINGTON, April S.-The
new revenue bill was ordered favora-
bly, reported to the senate today by
the finance committee.
1t provides, as reported, for a
retroactive reduction of % per cent
on 1928 income taxes which are pay
able this year, permanent revision
of the income tax rates in accord
ance with the plan of Secretary
Mellon: a special reduction of 70
per cent IN taxes on earned income,
and repeal of many of the mlsceIla'
neous and excise taxes.
The scope of tax reduction was mar
rowed. however, from that provided
by the house bill, warning of a treas.
ury deficit under its terms having
forced restoration of some of the
miscellaneous taxes stricken out DUR
ing house consideration.
The measure was ordered reported
on strictly party vote. nine 10
seven. Democrats announced their
opposition was based on the Mellon
income rates schedule carried by the
bill
The committee will be called either
tomorrow or Thursday to take up
the soldier bonus bill, Mr.. Smoot
said. He predicted not more thah
three DAYS would be required to get
report on the bill.
The chairman does not expect to
call the tax bill up for consideration
in the senate before the middle OF
next week.
AS framed by the committee, Mr..
Smoot estimated the tax bill would
fail by 500 100000 of raising suft1-
cient revenue to meet the regular
government expenses in the first
year of it's operation. This estimate
did not take into account, he added,
special appropriation bills which
might be passed by. congress this
session, including thine bonus bllL
which would require an expenditure
CT $135, 900, 900 the first year.
In winding up consideration Of the
measure, the committee reatfIrmed
it's action of last night eliminating
the treasury securities. This pro-
vision, it was estimated, would have
Melted the government $35,OOO,OO
annually.
A protest against the section limit
ing deductions on gross incomes on
account of interest payments was
made to the committee by Governor
Ritchie, of Maryland. Senator Smoot
said the constitutiCnality of such a
provision was somewhat in doubt.
The question will have to be decided
on the floor.
Democrats to Urge Changes
The Democrats have served notice
n Ia, t,r in
the tax schedules, particularly as re-
CARDS the Mellon income tax rate
voted into the bill by the Repub-
Leans in place of the LonSWorth
compromise rate adopted by the
house. The floor fight is expected
to hinge largely on the rate sched-
ules. Practically all the admins
trative provisions were agreed to by
non partisan votes.
Among the miscellaneous and eX-
else tax rates which will be taken
up on the floor are the automobile
taxes, Senator Walsh, Democrat t,
Massachusetts, advocating repeal OF
the tax on tires, parts and acces'
sories instead of the cut in halt
voted both by the house and the
committee.
The corporation and several of the
nuisance taxes also were to be CON
tested on the floor. Senator Jones
Democrat, New Mexico, plans to of
fer a graduated scale of rates in
place OF flat corporation tax of Il
per cent approved by the committee.
The Mellon income tax rates now
i'll the bill provide frOr a three per
cent normal tax on incomes of ST.,
600 and alnder, and 6 per cent above
that amount The surtaX rates start
at 1sper cent at $4,000 and grad
uate u to maximum of - pei
cent at 100000. SurtaX rates in
the present law start at L per cent
at Sc 600 and increase to Il maxi
mum of so per cent at 100000,
Committee Democrats have been
working out 4 substitute schedule
which it is understood will differ
somewhat from the Garner plan foI
a Al per cent maximum surtaN rate
supported by hoe Democrats AL
though Republican leaders are in
clined to believe there is little hope
for adoption by the senate Of the
Mellon rates, no compromise sChed
ule has been worked out, nor has
any support been given openly To
the LongWorth plan adopted by the
/ house Republicans
The lOngWorth plan provided fot
normal taxes of per cent on IN
| comes below $4,000: five per cent or
| incomes between $4,000 and SIS 000
! and six per cent above that. 1t call
| ed for a flat % per cent reduction
| in SUrtaX rates in the present law
! which would make the maximum
81 II per cent at 100000.
| The increase voted by the house
! in the estate taxes was eliminated
! by the sen; pmmittee as was tht
new gift tax voted by the house The
/ committee, however, imposed the
! only new taxes carried by the bill
! ter per cent each on radio and mai
/ jongg sets.