Extra Edition

A fortnight ago the Senate Finance Committee replaced the original Mellon tax rates (maximum surtax 25%). Last week the Democratic members of the Committee published their own edition of the measure. It is known as the Simmons plan, in honor of Senator Simmons of North Carolina.

This Democratic Senatorial version differs from the Longworth compromise accepted by the House (TIME, March 10) hardly enough to warrant its recognition as a peculiarly Democratic measure. It has the same principle of reducing the tax more on small incomes than on big.

For example, the total tax which a married man with no dependents would have to pay:

Longworth Simmons

$ 3,000 $ 7.50 $ 7.50

5,000 37.50 37.50

10,000 265.10 267.50

30,000 2,515.00 2,317.50

80,000 14,740.00 14,877.50

200,000 64,690.00 65,617.50

500,000 195,190.00 199,617.50

1,000,000 412,690.00 429,617.50

Under the present law, a $5,000 man would pay $100; under the Mellon plan, $56.25. Under the present law, a $200,000 man would pay $86,640; under the Mellon plan, $50,817.50.