Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-11
Schedule Is Radically
y Different from Gar
fner Plan Supported
by House Democrats
l. Committee Nav
Send Bonus Bill to
! Upper Branch Mon
day

Washington, April 30-Lines for
the major contest on the revenue bill
In the senate were definitely drawn
today by announcement Of Demo-
Gratis of the income tax plan they
will propose as a substitute for the
Mellon rates placed in the measure
by finance committee Republicans.
The bill as framed by the finance
committee was introduced In the
senate by Chairman Smoot, who said
he expected to call it up for consid-
Grafton next week. Senator Robin
son, Arkansas. Democratic leader,
Joined Chairman Smoot in the sug-
gestioa that the bill be taken up by
next Wednesday.
The Democratic income tax sched-
ule Introduced by Senator Simmons,
North Carolina, ranking Democrat,
on the finance committee is radi-
cal departure from the plan of Rep
resentative Garner, Democrat, Texas,
which was supported by house DEM
ocrats, and approaches very closely
the Lorgworth compromise rates
adopted by tho house.
1t provides for a maximum surtax
rate Of 40 per cent. applicable on in
comes of more than 100000. The
house maximum rate was 81 IL per
cent on incomes over 100000. The
rate on 100000 in the Simmons pro-
posal is 80 per cent. The maximum
rate in the Garner plan was Al per
cent on all incomes over $4,000. The
committee bill would mako the maxi
mum surtax rate rs per cent on all
incomes over 100000.
Representative Longworth, of Ohio,
the Republican leader. predicted to-
day that although there is no great
difference" in the income rates
adopted by the house and those pro-
posed by Senate Democrats, the
house would stand firm for its rates
in conference even If the senate
adopted the Democratic plan.
Representative Garner, on the
other hand, predicted that house
Democrats who with one exception
supported his plan, would give ap-
prevail to the program advanced to-
day by Senator Simmons, declaring
1t followed ain principle" the house
Democratic scheme "of larger reduc-
lions IT. the smaller incomes and les
ser reductions in the larger incomes
than proposed by Secretary Mellon.
Senator Simmons announced that
the plan he proposed today would
raise $4,000 more revenue annual
ly than would the committee bill
carrying the Mellon normal and
surtax rates.
Meanwhile. the senate finance
committee took up today the soldier
bonus bill passed by the house and
which Republicans of the commit
tee have agreed to support. On re-
quest of Democrats. who asked time
to outline proposals they vii ad-
vance for a bonus, definite action on
the bill was put off until Saturday.
/ Chairman Smoot predicted the bill
'would be approved b. the commit
tee on that day and a report OF the
measure made to the senate by next
Monday. In such a case 1t would be
possible for the senate to take up
the bonus bill ahead Of the tax
measure.
Senator Simmons, announced he
would propose amendment OF the
house bonus bill to include an option
for full cash payments to veterans.
The measure calls for cash payments
to those not entitled to more than
$50 In adjusted service credit and for
twenty year endowment life insur-
ance policies to others.