The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-12-28

correspondents, designed TO take the new
Federal tax bill fp1 Sss and na,. s6oT the Who aouse
and is now before the Senate.
ga ASHINGToN. Dec. 2s.-The
lWI tax-reduction bill which the
w House recently passed out
MELONS the Mellon plan. defeated
two years ago, in its enormous re.
auctions Of the taxes OF the wealthy,
and it's comparative neglect of the
small taxpayer. in the opinion OF
progressives here.
The bill. which provides for au
ultimate cut In taxes Of about $685.
0O0, 900 yearly, passed the House by
a combined Republican and Demo
cratic vote and will shortly come
before the Senate, where the small
taxpayer still has chance for
AMENDMENTS in his favor.
The enormous favoritism Of the
bill to the wealthy is shown by the
large cuts in income taxes, super
taxes on big incomes, inheritance
taxes on big estates, and others.
The maximum supertax Is cut in
half, from 40 to 20 per cent; the
inheritance tax maximum is slashed
the same amount; the gift tax" on
large gifts, designed to prevent eva
sion OF the inheritance tax by the
giving of estates to heirs, Is abol'
ished.
The total saving to the 256,0OO
taxpayers paying on incomes Of
more than $4,000 yearly Will be
$3.50 ,000, 900 In income and super
taxes alone. To the seventy-four
persons paying taxes on incomes
this year of more than $1,000, 900
each, the savings are expected to be
more than $2O,O00.0 900, or an average
Of $270,000 a piece.
To balance >this, 100000 persons
earning less than $500 If married
or less than $1,5OO If single. are re-
lieved of income taxes. Their total
relief is estimated at about $21 ,000,-
600, or less than $40 each. In other
words, the seventy-four immensely
wealthy persons at the top OF the
scale are given as much total Dene.
fit as 1900, 900 at the bottom.
Even among the larger taxpey
ers the bill does not deal evenly.
Men with incomes from $1,000 to
S44, 0O0-the average successful bust
ness men--are given no cut at all in
supertaxes, which are slashed In half
for the multimillionaires, and are
given only a small decrease in nor
NAL income taxes. Even those who
get up to 100000 yearly are given
only small decrease in normal in.
come taxes. Even those who get up
to 100000 yearly are given very
slight benefits compared with those
of the immensely wealthy.
War Tax Cut
The cuts in war and sales taxes.
such as those on autos-$S2 900, 900
-theater admissions, works Of art
and jewelry. tobacco, etc, are more
favorable to the small taxpayer. but
with the exception Of the auto tax
these are negligible, and even many
of them benefit the very wealthy al
most exclusively. @
The bills favoritism to the veal
thy does not end with the cuts in
taxes, however.
It repeats the tax publicity pro-
visions established two years ago,
and so strenously fought by the big
taxpayers ever since. No more in
comes may be published IL the bill
passes the Senate unchanged in
this respect.
Tariff Unchanged
1t permits the Administration to
leave absolutely unchanged the
Fordney tariff act, with its high
tariffs under which S547, 900, 900
was paid in taxes on imports this
year. This Is passed on to con-
sumers, as well las an enormous adj