Evening star., 1925-10-21

Continued from First Page
Garner declared repeal Of these pro
visions would leave a large loonbole
for tax evasion. Mr.. Garner suggest
ed trust creators might protect them
serves by inserting clauses in trusts
recurring benetiCiaries 10 pay the tax.
The provisions complained Of werc
enacted two years ago at the reuues.
OF the Treasury.
Just as the ways and means cor,
inittee settled down 10 consideration
OF individual and business appeals for.
tax revision the Treasury Department
sent IN reVamped schedule of nor
mai tax rates late yesterday. which
differed materially from the schedul,
presented only the day before by SEE
retary Mellon, and urged the repeal
or the earned income provision OF the
existing law.
The committee now is informed
that the rates on which the Treas
urys estimate of a $4,000 900 cut in
the income tax revenue was based
are ] per cent on the first $4,000: =
per cent on the next 81 .oUU and ) pcl.
cent on all over $1,000 This com
pares with the rates given yesterday
of 112 per cent on the first 81 ouu, )
per cent between $4,000 and S. 600 and
. per cent on all over $1,000.
The surtax rates proposed would
begin at l per cent on the sum be
tween $4,000 and SIS, 900 and go up
gradually TO 20 per cent on all over
$3.50. 900. The surtax rates as set out
in the schedule are:
Surtax Rates.
one per cent, $4,000 to $4,000
Two per cent, $4,000 to $1,000.
Three per cent, $11 900 TO Slq 600
Four per cent. SO 900 TO S21 .G00
Five per cent, S2t .000 To So ,00u
Six per cent. $1,000 to So. 900
Seven per cent, $25. 900 TO $50 ,Uon.
Eight per cent, 900 10 So. 900.
Nine per cent. S35 900 To $4,000
Ten per cent, $4,000 To $45 900
Eleven per cent, $500 TO 10000.
Twelve per cent, $4,000 to $50, 600
Thirteen per cent, $50 900 10 SO. 600.
Fourteen per cent, $4,000 to $500
Fifteen per cent, $4,000 to $40 600.
Sixteen per cent, see 900 10 SlC0. .000.
Seventeen per cent, 100000 to
$1l0, 900.
Eighteen per cent, $4,000 to
S125 900.
Nineteen per cent, $125.Oo0 10
$780,
Twenty per cent. all over $50, ,000.
After nearing Secretary Mellon and
other Treasury officials on Monday
members of the committee were under
the impression that there was no pro
posal for repeal of the provision on
which a 25 per cent reduction in tax
is allowed on earned income up to
SO, 900. Some of them said after n
haSty review of the schedule sub
mitted today that repeal OF this pro
vision would meet with little support
in Congress.
Representative of business and in
dustry were in general accord in ask
ing repeal of the estate and gift taxes,
reduction of the SurtaN rates and
adjustment of the provision permit
ting publicity of income tax returns.
Two statements by individuals
brought out contrary views. Prof.
II. w. Peck of Syracuse University,
New York, opposed the program suG
geSted Yesterday by Secretary Mellon,
advocating an increase in the surtaX
rates, instead of reduction, and re-
tention of the estate tax. Thomas j
Sanford. New York attorney. urged
repeal of all Federal taxes and sub
Stitution of n levy of > per cent on
real and personal property.
Representatives of the National
Association of Manufacturers. the
Texas Tax Clubs, the New York Board
of Trade and Transportation the Real
Estate Board of New York and the
Retailers National Council were heard
by the committee yesterday.