Evening star., 1926-02-03
TAXPLAN CALLED
M|LL|0NA|RES' BILL
Senator Howell Says In
comes Over 100000 De-
rive Greater Benefit.
BY G. GOULD LINCOLN.


The tax reduction bill was assailed
in the Senate today by Senator How
ell. Republican, of Nebraska, who IN
sisted:
/. That the bill lifts the burden of
taxation principally from the shoul-
ders of those best able to pay to a
far greater extent than 1t aids the
taxpayers of moderate means.
2. That it is the part of wisdom to
pay off the great public debt. due to
the war. as rapidly as possible so as to
save the people the tremendous cost OF
interest due to a prolongation of the
debt.
g. That In the war debt settle
ments with foreign debtor nations
the debts have really been Cancelled
and the debtor nations are to pay
the United States over period or
62 years only what amounts to a
far less rate of interest on these
debts than is the interest which the
United States is paying on its own
war Indebtedness.
Cites Income Figures.
Senator Howell pointed out that in
the year 1925 5,694 incomes of
500 900 or more were reported, and
that 7,293.000 incomes of less than
500 600 were reported. He figured
that the total relief proposed In the
pending bin for those reporting IN
comes Of 100000 or more was
s275 900 900, while the total relief pro-
nosed for those reporting less than
90 900 income was only $20l 500, ,ooo.
The Nebraska Senator gave hsures
to show that the personal income TAX
reduction on those reporting incomes
Of 500 900 or more would De $lZo'ooV'
600. while the reduction on those re
nort,ne incomes less than 100000
would be s9s. 500 900. The proposal to
repeal the estate tax. he showed. would
benefit the first class by another $s0,
600 600 and the second class by only
$50 600 900 Rebates Of estate taxes
levied under the 1924 law, he showed
would benefit the first class by eoo'
ooO 600 and the second class by $4o,'
600 900, and reductions on account OF
the repeal of the gift tax would be si,,
500 600 for the first class and $3,Ooo'ooo
for the second.
A MilIionaires' Bill.
Senator Howell insisted that the
bill is in the interest OF the mil
Ionaires of the country rather thatl
Of the people in general.
Discussing the need of paying OF
the public debt as quickly as possl-
BILE for the benefit Of the people
Senator Howell said:
"The time to pay debts Is when
YOU have the money. and II Is par1ic-
ularly the part Of wisdom 10 Hly
debts when you can do so with 90
cent dollar. What is true respecting
an Individual Is likewise true re-
snectine masses Of men-of nations.
WAR has left the American people
with a tremendous burden Of liabili-
ties. We are at present highly pros
porous; that Is, we have the money
and the 66-cent dollar is still with U.S.
Notwithstanding these facts 1t is pro
posed to continue upon the further
reduction of direct taxes, and es-
pecially those levied upon large In
comes and great estates.
During the war we wisely adopted
the principle of the imposition of
heavy taxes upon those who were
best able to pay. In view Of our stu
alton, why should we desert this prin'
ciple now? True. armies are no
longer destroying each other upon the
battlefields of France. The peace
treaty Of Versailles Is a fact.
However, so far as the payment OF
war debts and other war liabilities
is concerned. the war is not over:
we are just in the midst Of 1t. and
the end is far off.
Paying 81, ,6se .000. 900 Annually.
"For the four years following June
80, 1921. our direct war liabilities
have caused the American people to
pay, on account of sinking fund and
interest upon the national debt, the
Veterans Bureau and other veteran
relief. and on account of adjusted
compensation, an average Of S16S2,-
100000 per annum. And this average
is but $4,000.000 in excess of the
liabilities for the fiscal wear ending
1925, or s1.67s. 100000. Therefore, is
it not evident that these tremen-
dous expenditures are but a measure
of the war burden the people of the
United States must carry for years
to come-in addition to all other eX-
penses of government?
This great sum Is more than double
all the appropriations Of Congress for
the year 1914. excluding the receipts
of the Post Office Department. 1t is
nearly SIS for every man, woman and
child of our great population.
Indeed, the war is not over so far as
war expenses are concerned. Yet not.
withsta nding these facts the tax bill
reported by the finance committee and
now before the Senate reduces the
maximum surtaX on graf incomes
from 40 per cent to 20 per cent 1t re.
lieves an income of $500, 900 of more
than $50 900 per annum: an income of
81 900. 900 in excess of $751; 900; an in
come of 50 100000 of more than $607,