Evening star., 1924-03-02
SENATE APPROVAL
OF HOUSE SURTAX
RATE is EXPECTED

Continued from First Page)
lieved the democrats We're in SYM
pathy with tax reductions generally.
that there would be little contest over
the tax bill except over the income
tax schedules. He pointed out that
in the present tax law there was a
rates on big incomes. bringing the
maximum down from Cd to SO per
cent. and that the excess profits taxes
had also been lifted from big incomes,
and that II vas estimated that the
elimination OF the excess protts taxes
and lifted s500.000.000 tax burden off
OF wealth. |
"ln the present law we made a
bigger reduction on the large incomes
than We did on the small" said
proposed Il 30 per cent reduction in
the tex rates on the big incomes
and "a 81 per cent reduction In the
rates on the small incomes believe
that people with small incomes should
of taxes"
Mellon Hill to lie Asked.
Efforts will be made, too. to have
the Mellon plan substituted for the
House bill. Such IL motion will be
made, probably in the Senate finance
committee. il was said. But whether
such f. motion will prevail even in the
committee. is not known. Certainly
there is little likelihood of it's pre-
VailinS on the floor of the Senate. in
some quarters. the position was taken
that the republicans of the House had
abandoned the Mellon rates III effect
ing the compromis" with the republic
can insurgents in that body. and for
that reason they would not be strong
lY pressed by the adninistra ton re-
puhiicanS OF the Senate. AS a prac-
teal matter. ii IS recognized that the
House would never agree TO the
original Mellon rates If the bill were
sent to conference by the Senate car
rying those rates.
Assaults are expected on some of
the other features OF the tax hill as
it passed the House. An Effort will
be made to reduce the estate taxes,
which the House raised from the
present maximum of % per cent to
40 per cent.
II is likely. too. that amendments
will he offered with View TO curb
ing corporations in the matter of un-
divided surplus. 1t is claimed by
some of the senator's that CORPORA
tions has abused. in some instances.
the privilege allowed them OF accum-
ulating surpluses and OF using much
of their income in capital cXIsndi-
lures.
The tax bill was received by the
Senate yesterday from the House
and Immediately referred by the pre-
siding officer 10 the senate finance
committee.
Senator Smoot OF Utah. chairman of
the committee, said that he had or
dtred the hill printed in convenient
form for the use of the committee.
snuwihg in parallel columns the en-
iStin2 tax rates and those levied in
the bill as II passed the House. The
reprinted bill, he said, would be
ready by Tuesday afternoon or Wet
hJf hn a
call meeting OF the committee as
soon az IL WAS ready.
SECS Expedition OF Hill.
Senator Smoot said that he believed
fic- bIll couiu bs considered eXneaf-
tiousiy In the committee and in the
eenatc. and In TINS Se.tGtor Simmons
ccnCdIrrd. Senator SllOot said that
lew hearings if any. would be nec.S-
Sary. IA. said the committee would
call in Secretary Melon and Other
II oasury odicials to obtain their
views and such information as might
be des:ren: lot that these confer
en"es would Le executive. and not
properly hearings. II Interested d. r
sons demand hearings the roTnm,I ;c.
Wul act upon: Sucl demand, h. indi-
Gated. but they would be limited
Wien tie present law was under
cons,drrai'on in Congress the House
at that time iiXed the rusA im,rn of
tile %urt?N rate: at - pep ,ent. In
t.'t Senate. however. thcr. wa. Il rn-
volt against thi" reduction. and thu
bill pa '.aGd that hony with The pr,..-
eht 20 per cent ria NimuIn.
80 Ia;, IL was said la..t sht there
mas bt"n no conference a;rcn2 dem
nrrata leaders and tii. iusureent re-
PunlIC&ns Oh the proposed tdX bill
II is realized that "A combination of
~ ir"' iif urErnt* aud the democrats
If thr democrats vct.d So;id.y-
could control the senate on The t?x
phi. az II has on Other matters that
nave come irrusc tnH1 body thia srs-
sion. But Will. the iusIroent r.Dub-
lear. ale d""iTori< o. Increasing th..
fa& i'Nrts on wealth OF the country.
SON" 81 the democrats take the atti-
tudc that the whole country, rich and
poor. Is entitled tu benefit in th. Ir-
du, tion Of the taxes
"hen the present tax law was uu-
Der consideration. the Whole revenu.
law enacted to meet the war situ-
alton was being discussed with Il pros-
rtct OF reducing the taxes about S2.-
""".opn."eO. Also the law was being
rewritten in regard to the adminis-
III aratiEe leaturesu-a big task in Itself.
The present bin is compara,ivelv
simple; it was said. and for that rea-
son should not require very much
Tim" in committee. The House hear
Inss or the bills were extensive. and
Niii De r1iird upon to Il large eX-
tent DE the Senate committee.
Concerned AZ to Revenue,
tonSliefabie interest. both in tn.
Senate and House. Wa evident con-
Cernlng the government estimates as
TO the amount Of revenue assured
hy tlre bill as it now sand. In
proposing the compromise schedule
sir. LongWorth said it would not re-
suit iii Treasury deficit. hut rough
calculations made today by some
republican members OF the House
advocates OF the Mellon income tax
plan, indicated that the bill as passed
by the House would reduce revenue
about $3.50. .000.u0D next year. The