A New Schedule

For an entire week the Senate labored over the tax reduction. When the surtax schedules were reached, it was expected that several days would be spent in debate. Instead, after only one day, the Democrats forced a vote and supplanted the Mellon rates by the rates proposed by Senator Simmons, North Carolina, Democrat (surtaxes beginning at 10% on $10,000 increasing to 40% at $500,000; normal tax 2% up to $4,000, 4% from $4,000 to $8,000, 6% above $8,000). The vote on the Simmons plan was 43-40 for the surtaxes and 44-37 on the normal taxes. The Republican insurgents (including Hiram W. Johnson) voted with the Democrats, whereas three Democrats, Bayard (paired), Bruce, Edwards, voted against their colleagues.

Placing the Simmons rates in the tax bill was not necessarily final, but regular Republicans doubted their ability to remove them. So, barring unexpected alterations, when the Senate passes the tax reduction bill, the joint conference will have to decide between the Longworth rates (which the House approved) and the Simmons rates. The resulting compromise will probably be the final form of the bill.