| Show SUBMIT FOUR REPORTS ON PROPOSED REVENUE Expect Annual Saving to Tax Payers of Million Dollars In New Income Rates WASHINGTON Feb Pcb 1 11 reports on the re bill differ differ- differIng Ing ine widely on the th question Que of o In- In Income income In Income come and nd surtax rates rat were wr re- re reported reported re reported ported to the house houe today b by mom mom- mem-bora mem bore bors ot or th the ways was wa's woy and nd means mean corn com comm m The Tho measure which has h occupied more than th n two months of or the th corn corn- time Is li expected to pro pro- pro provide vide Ide at least a months month debate debato In hl Inthe Inthe t the he house hero hero a change chango In the th I 1 utes ules will VIII permit its amendment fr orn om the floor Chairman GreenS Green In in the committee report which was WILa adopted b a strict party lote ote ote In Inthe Inthe Inthe the committee although three or of orthe the Republican Including Mr Ir Green mo are fi o known to rI Or Its amendment declares tire the Income tax IX reduction provided for tor In III the th bill as submitted will brIng brine an annual savings to taxpayer en esti- esti estimated esti estimated mated nt at after arter It Is laIn In full tull operation as compared Ith the tho estimated HIS Income return together with Ith an estimated reduction reduction tion ion of ot In 1923 per per- perI per personal I Income taxes pa able this 3 I The Ih he reduction In estimated reve- reve reve-nu reve flue nuo Bill III ilI bo ho distributed as a follows follow Normal tax l surtax x SOO 00 Olio O O earni earned earni Incomes 89 or sar ar T I o e hes lot 00 Tills THe will be b offset by Increases resulting from limitations put upon capItal losses and certain deduc deduc- deductions deductions limited to tax free tree Income It is 18 1 estimated will bring brine In 49 additional revenue re an- an an annually REDUCE RATES BATES The Th normal tax on the th tint first of taxable Income Is reduced reduce from 4 per cent to 8 per cent and upon the remainder of the tho taxable In- In Income Income corn In-corn come from 1 S to 6 f per cent The I Initial surtax of 1 per cent Is made to apply at Instead ot of and ts Is I Increased gradually to 26 5 per cent In of and ond 0 oer o cr er I Mr fr Green deen Gt een said MId the bill gives rives 1 material relief reller to all an Income tax payers amount of reductions LIons and con consequent loss lose lo to the treasury Is larger In the th 10 loer er brackets than In the th higher though the percentage of or reduction or of course Is much larger In the th higher brackets than In the lower ExplainIng the reductions reduction In the them m from 0 60 to 26 2 per percent cent Mr Green referred to See Sec rotary Mellons Mellon's argument that thIs thie rate should be b considered the point at which they the the could b be applied effectively ely or the point of maximum ho he added ho however ever It Is 1 Impossible to accurately determine at hat hat hata a rate rat of or tax this point Is reached but It teems seems to be b g con con- conceded Conceded conceded ceded that a SO 60 per cent surtax has ha a constantly IncreasIng effect In creating evasions and that It Is 1 Inadvisable for other reasons ReferrIng to the provision for tor a 11 25 25 per cent reduction In tax on earned Incomes the th chairman said ald ald The Th definition thAt at lea least SO 50 of ers er's Income shall hall In all cases be consIdered earned provides for tor the th mall email tax tax- taxpayer payer such as a the farmer and mer- mer merchant merchant chant whose Income Is derI ed In part from personal Ben Ices and an andIn anla In la part from capital and ap- ap approaches exact Justice as near as a asit It i Is possIble without making m the th I law unworkable and Impossible of administrationS admInistration CHANGE GE Th The following changes were ere cited Co 80 11 a as to prevent the th advance In come tax The wilting law provides pro Ides that the amount bv by which the th tax tat Is In- In Increased in Increased creased on account of the th gain from the sale tale of ot capital assets shall not exceed 12 1214 J per cent of the tb I gain lain and In the proposed bill blU It Is pro that the amount by which the tax I Is reduced on of o losses from the th sale eale ale of capital as- as as sets els assets shall not exceed 12 per cent of the loss reorganization The pro provisions of the rewritten sections hate hae hav ha e been ten to prevent the th use of the th sec eec I I tion to esea escape pe proper taxation by I increasIng the th basis for I Uon tiOn or depletion or by increasing or lots bce Io s from the sale of assets asset transferred In Itt connection with a reorganization by distributing as capital rains what are ar In effect out of or earnings Where the grantor or a trust retains retain tile the power of re revocation the Income of or the tru-st tru is to be b taxed ta to him Tile penalty P 11 Imposed by 20 upon upen corporations corporation availed a of to avoId the imposition of surtaxes on toe Stockholders stockholders Is now based upon all the tho income of o the th corporation which would be bo taxed In the handsor hands ande of or an Individual and the lion Is I created that any Investment company Is I 0 availed ailed of for the pur- pur purpose pur purpose pose poso of avoidIng the Imposition of surtaxes on stock holders Tho The deduction for Interest paid on other than Inter inter- interest Interest est paid or Incurred In connection Ith V ith the th trade trad or business of the ers and the th deduction for non busIness losses are ar allowed to the tho extent that the sum suni um or of those these t to f o 0 items Item exceeds the tax tex e Ox- Ox ex exempt empt Income of or the taxpayer The report r port of the th 11 Republicans lor of tho 1110 committee was wa the tho same saro as Chairman Chairman Green s e except for tor con- con additional argument do- do de defending tho cut In surtaxes to a maximum of 25 per cent It poInted out that the th high rates rotes were be- be becomIng becomIng be comIng Increasingly e cIting that Incomes of or over 29 5 per cent of the total Income reported In 1916 andi ant and 5 4 per cent and 4 f 6 per cent cent re- re rc In lit 1820 1120 and 1921 I The only way ay that the Income tax as applied to large luge l r In Incomes COrnU can be made mado mad an actuality the th report said Is Is ii by reducing the th rate te of 1 tax taC to a sound level and thus thoa thu lee les- lessenIng 1 tho Incentive to taxpayers taxpayer to avoid void the tho ino tax la I The tlc report port r called fora for tor a reduction In the normal taxes to toZ 10 2 per 11 cent on net incomes Income up to four per cent on 00 Incomes betseen 5 and six sl ei per per per cent above that amount I the Represent Garners Garner's original plan called for tor a four per cent tax on Incomes income between and 10 and the th reduction to toS toS 8 S was explained as to cut do down n somewhat the loss lose In which h h hs the treasury S Sd report report- e Se e od would I bo be s sustained under d the plan The Tho surtax rates proposed by bytho bythe bytho the tho Democrats would start with one per cent at and Inertia Increase to U 44 per cent on Incomes Income or of ot and 0 oer er These Theo rates the th report said would result In losse losses of or rev rev- revenue revenue rev under tr treasury ury estimates or of in th the normal taxes compared to 8 4 under the Mellon ellon rates rate adopted by tho the corn com and 96 In the th cur sur- taxes compared to under the th Mellon M llon surtaxes The Th figures ere based on 19 1121 1921 21 re returns return I I 1 Citing Secretary Mellons Mellon's dec dec- l that Representative Gar Gar- Garner Garner ner r ranking Democrat on the th corn com committee was sas pIa Ing politics politic In ot- ot offering of ferine fering this ta tat tai revision rp plan the th report declared his expression was wa an an unheard of performance as In- In insolent In solent solent as os It Is Imprudent and in the th judgment nt of or the minority is In the th wor t of bad faith to toward ard I alve Income taxation In addition to to asking different Income rates the Democrats proposed hIgher estate taxes and enactment of or a gift tax together with the th repeal of ofa ofa ol a number of or the taxes taus in addition to those these already bv by the committee Ire The Th report explained that all lea rea- tea I tures turca bithe bythe of or the tho bill were considered by the whole committee until the th In- In Income income come rates were sore ero reached when the th Democrats were e excluded Many of ot the measure other than thon the Income rates rate are praised par par- particularly par provisions provision I elating to tc stopping loop holes In the th of tho 10 law lass b bi which many large taxpayers escape cape their just taxes but the report added that thai the majority bill still leave leaea Ica es large discretionary powers with the treasury department In tax mat- mat tore matters |
