Evening star., 1928-05-13

tCOnLlnue0 1TOul F15b FhkcsD
received the support of two Republicans
I-Norbeck and McMaster of South Da-
kota--and won By vote OF 40 to 50.
Surprised by the first break in his
ranks, Senator Smoot of Utah. in
charge of the Republican fight. an
nounced he would ask for another roll
call on the graduated scale of corpora
ton rates which was fostered In the
House by Representative Garner, Demo-
Senator'S Harrison Of Mississippi. and
Walsh of Massachusetts, carried the
attack for the Democrats yesterday on
the graduated scale Of rates for cor
porations, arguing that 1t was only fair
TO allow lower rates for corporations
with small incomes in place OF the nat
tax now imposed on all corporation In
comes. This was challenged by Sem
ators SmoDt and COuzens, Republican,
of Michigars who contended the change
meant discrimination.
The Garner rate schedules which we're
restored to the bin provide for tax of
per cent on corporations with incomes
Of $1,000 and less, per cent on incomes
between $1,000 and $4,000, and Q per
cent on incomes between $l2 900 and
/ $4,000. The regular nat rate would
apply II, incomes above that amount.
New Provisions.
New provisions were added In the
Senate TO this tax proposal, however,
which would take care Of incomes just
above each Of the arbitrary limits so
as not TO make corporation with an
income Of STOOL pay as much as a
corporation with an income OF $4,000.
The provision would pro-rate on such
margins as that.
Disposition Of the corporation tax
| fights left only one other important
| change in the bill proposed by the Re-
| ptibIicans 70 be decided upon~-down-
| ward revision Of the surtax rates ap-
plying on intermediate incomes. Here
aealn the Democrats win seek greater
reduction than proposed by the Repnb-
lican majority.
THE contests yesterday developed an
| other round Of oratory. Democrats un-
| leagiled their heaviest assault on the
/ Republican demands for Limitation Of
| the tax reduction 10 5000 900 900. Sena--
| TOR Harrison recalled that In the past
| Treasury limitations have been ignored
and that always actual Treasury sur
pluses were far above estimates.
Offers sinking Fund Plan.
/ genator Simmons, In charge Of the
| Democratic forces, then advanced hii
proposal 10 modify the debt retirement
program by applying payments received
! from foreign governments on account ol
war debts 10 the sinking fund, instead
Of appropriating for the full ginkinl
| fund which h used IN retirement d
! the debt He said this would give $500
| coo 900 more q year In savings on ap'
| pFopriati0ng for tax reduction.
Senator ffDo0t let the Democrats talk
most Of the time, His contention, how
ever, was that the Treasury estimates
Of EurpIuEes for this year were based
on actual tax collections rather than
on mere calculations as IN the past, anC
therefore. they could not be challenged
He warned OF deficit II the $500 900, =
600 limit Was exceeded
Senator GhiDstesd. Farmer Labor, oi
Minnesota. who has introduced All
amendment an a 'gideT" calling for up.
ward revision Of the tariff rates on a
mass 0f agricultural products, today
nut IN a second amendment along ,hle
line embodying list of products on
which the conference Of farmers or
gantzattons. IN session here recently
wants the tariff raised The list wal
submitted ~ him by J. E Montgomery
chairman III the conference.