Evening star., 1925-10-22
MELLON PRESENTS
REVISED SCHEDULE
FOR INCOME TAXES
Plan Calls for I Per Cent on
First $4,000 and 2 Per Cent
on Next $1,000.
RATE ON $4,000 EXTRA
IS SET AT q PER CENT
30 Per S1O0 Asked for All Taxable
Income Above So, 900, in
Treasury Suggestion.
By the Associated Press.

By the Associated Press
A new schedule of normal income
| rates was presented TO the House
ways and means committee today by
Secretary Mellon.
The proposal suggests a rate of l
per cent on the first So, 900 Of taxable
income, per cent on the next 81 900,
per cent on the next $4,000 and
per cent thereafter.
l. This arrangement the Secretary
said in Il letter to Chairman Green,
probably would be more satisfac-
tory than the recently submitted
Treasury schedule suggesting l per
cent on the first 1900 of taxable in
come, per cent on the next $4,000
and per cent thereafter.
Present Tax Rates.
Present normal rates are per cent
on the first S4 1000 of income, 4 per
cent on the next $4,000 and per cent
on the remainder.
Mr.. Mellon submitted the new fig
| ures, not as a definite" proposal,
but as an alternative plan TO that
laid before the committee in writing
/ Monday. 1t really is the third tenta-
tive outline of rates the Treasury
/ has submitted, Mr.. Mellon having
suggested orally when he appeared
! before the committee Monday that
the rate might be made 112 per cent
on the first $4,000, per cent between
81 900 and $4,000 and 5 per cent for
all over $4,000.
Mr.. Melons letter reached the COM
rnittee just as it was beginning its
fourth day of hearings on tax revi-
sion, with a long list of witnesses on
hand to submit their views on the in
come and various other levies. The
letter follows:
In my statement before your COM
mittee on October 10 l said:
The Treasury does not propose
any definite rate, but it presents to
! you the certainty that tax reform can
go to a % per cent maximum normal
and surtaX without the slightest dan
! ger TO our future revenues
Figured by Actuary.
"In order to insure the accuracy of
such a statement it was necessary for
| the Government actuary to work out
definite schedules of normal and sur
tax rates within this limit of 25 per
cent. Your committee requested that
we file the set of rates upon which the
estimates had been based.
THE actuary had used two tenta-
tive schedules which yielded substan-
TALLY the same revenue. The one
originally filed with YOU called for
normal taxes of per cent on the first
So 900 of taxable income, per cent on
the next $4,000 and 5 per cent on the
remainder. The alternative schedule
| of the actuary is probably more salts
factory and should have been used
This schedule of normal taxes is per
cent on the first $1,000. 2 per cent on
the next 81 900, 8 per cent on the next
81 900 and per cent on the re
mainder.
Not Treasury Proposal.
II desire, therefore. TO substitute
this alternative schedule for the first
one already filed. Your committee
will work out its own specific rates
within such limits as the committee
may determine, and the actuarys
rates are used solely to illustrate a
possible schedule within the limits
mentioned by me. The press has as
sumed that the actuary's schedules
Of rates represent definite Treasury
proposals, and l am writing you now
to assure you that the Treasury has
made no change in the position taken
in the statement quoted above, and
does not wish to be understood to be
proposing definite rates of tax"
Committee members noted that the
letter left the previously submitted
schedule Of SurtaX rates undisturbed,
and that whereas the Treasury had
declared the schedule submitted on
Monday to be predicated upon repeal
of the present 25 per cent deduction
for earned income, today's letter made
no reference to such a repeal.
Protest by Garner.
Today's committee hearings began
| with a protest by Representative Gar
ner Of Texas, ranking Democratic
member, against statements made at
yesterdays session by representatives
of the Iowa Tax Clubs, who appeared
to ask for repeal of the Federal in
| heritance tax. Mr.. Garner did not
specify the language to which he re-
| ferred, but said it had constituted
| ''veiled assaults" .on Chairman Green,
who is himself an Iowan.
Chairman Green replied he was not
concerned.
II thought you could stand the
hints Of the delegation that they
| would take care of you out home. but
| it was most improper" said Mr..
Garner.
Arkansas, also charged that witnesses
| were injecting politics into the dis
cussions, and demanded that Chair
at the hearings.
Certainly no offense could be taken
at any remarks of a political nature
made here" returned Mr.. Green. II
was greatly amused myself"