The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1924-05-22
ARE AGREED ON
TAX REDUCTION
Conferees Reach Agree
ment on Tax Reduction
Bill Today.
ADOPT SIMMONS PLAN
Simmons Democratic Income
Tax Rate Schedule Adopted
with Certain Changes.

Washington Unanimous agreement
was reached today by the conferees on
the tax reduction dill. The Simmons
Democratic income rate schedule pro-
yiding for 1920 maximum surtax rate
and 500 reduction in normal taxes on
incomes under $4,000 was accepted.
Senate amendments providing for full
publicity of tax returns and tax on
undistributed corporation profits were
rejected.
Hope was expressed by senate Re
publican organization leaders that the
bill as now framed would meet the ap-
proval of President Coolidge, who has
declared opposition to both the publ
city and corporation proposals which
were eliminated.
The house provisions for 40%o in
crease in existing estate tax rates and
for the imposition of gift tax with
rates similar to the estate, tax rates
were accepted.
Senate Democrats in yielding their
proposal for a substitute corporation
tax and full publicity of tax returns
explained that they did so in expecta-
ton that the bill would not be objec-
tionable to President Coolidge.
The provision for 25@o reduction
on earned incomes was retained, but
the senate amendment restricting the
am cunt to which this, cut could be APP
piled to $4,000 was accepted.
Compromise on Jewelry Tax.
A compromise was reached en- a cut
in the jewelry tax. All articles selling
for $50 or less were exempted from
the $50 tax. The house had set this
limit at $40 and the senate at $25.
Senate proposals to exempt produce
and merchandise brokers from the
! brokers tax and restore the full levy
on billiard and pool tables and bowling
alleys were approved.
The treasury proposal to limit deduc-
tions on account Of capital losses to
! 121a9 was restored to the bill by de-
mand of house conferees. Secretary
| Mellon has estimated it would increase
returns in revenue by $25,00O,000 an
nually.
Chairman Smoot of the senate
finance committee estimated the bill
went O0OO0,O00 below the treasury
surplus available for tax reduction.
This did not take into account the cost
OF the bonus Dill Whlch II mas oecll
estimated will require an appropriation
of $4,000, 900 for the next fiscal year,
or other pending measures calling for
special appropriations.
An early decision 5v the conferees
on the revenue dill was indicated 20
i5dav. Chairnen Smoot Of The senate
group having announced that they had
progressed to & point where action
must De taken on the major provisions.
Renewed contests over various lax
1e duction proposals are in prospect in
both chambers when the conference re-
port is received, but leaders of both
parties have indicated that if the con-
| ference action is approved by major
! ity of the conferees no serious tights
| will be made on the floor.
! Agreement had been reached last
night on most of the provisions in the
] bill except the income tax schedule,
the sub-corporation tax imposing levy
on undistributed profits and the pro-
Iposal for full publicity of tax returns.
While some doubt exists as to the
| attitude of President Coolidge toward
any tax reduction next year in lieu of
/ enactment of the bonus law, admins
| tration leaders are bending every eff
1 fort to get the bill in line as early as
nossible with administration views
| This will require elimination of the
/ sub-corporation tax and the full pub
| licity proposal, both put in the bill by
Democratic Republican insurgent Goa
| lition votes in the senate.