Evening star., 1924-05-11
TAX BILL PASSED
WITH ALL MELLON
PLAN ELIMINATED
Republican Senate Leaders
Threaten to Ask President
to Veto Measure.
CUTS CURRENT INCOME
RATES BY rs PER CENT
Entire Democratic Program Ap-
proved in Upper House by
Vote of SO to Is.

Stripped almost of every vestige OF
the Mellon plan and clothed in the
Democratic program, the tax reduc-
tion bill was passed yesterday by the
Senate, So to 15
AS result it goes to conference 70.
adjustment of differences with the
House. with its life at stake. Repub-
lican organization leaders in the Sen
ate frankly admitted they would
recommend veto of the measure b..
President Coolidge, if it was not
transformed by the conference.
The President had asked Congress
for the Mellon plan. Although his
views were not made known on the
bill passed by the House. which car
ried only the remnants of the Mellon
scheme, he has voiced specific oppo-
sition to some of the provisions in
serted in the Senate.
Provisions of Bill.
The Senate bill goes practically as
far in general tax revision as that
passed by the House. 1t provides gen
orally for:
A IS per cent reduction in income
taxes payable this year
Repeal or reduction of most of the
special excise and miscellaneous
taxes.
A so per cent permanent cut in the
taxes on incomes below $4,000 and
general reduction in the taxes on
higher incomes. The maximum sur
tax rate would be cut from so TO 30
per cent.
A 25 per cent reduction on earned
incomes up to $4,000.
Fifteen Vote "No."
Administration leaders opened Their
attack on the bill yesterday jus,
before passage, and fifteen republi
cans voted against it while three
others were paired against it.
Chairman Smoot OF the finance
committee declared the Senate in re
modelling the bill had cut taxes b.
Sill, $50. goo beyond the reductions
recommended by the committee, and
that as a result, instead of $50
0o0,0 600 Treasury deficit next yea
under its operation the government
faces a s1s1, ,000, 900 deficit which will
be increased to S475. 100000 If the
pending extra appropriation bills be
come law
Senators Moses, New Hampshire.
and Brandegee, Connecticut, Republi-
cans, served notice that +'in view OF
the total destruction of the Mellon
plan" they would not support the
measure finally unless it was trans
formed in conference.
Delay Now Expected.
The measure probably will not be
taken up by the Senate and House
conferees for final adjustment of diff
ferences before Tuesday, and Chair
man Smoot expects it to take two
weeks to reach a settlement.
The vote on passage was:
Democrats-Adams, Ashurst, Bay
ard, Broussard, Bruce, Caraway, Dial,
Dill, Ferris, Fletcher, George, Gerry,
Glass, Harris, Harrison. Hefiin, Jones
of New Mexico, Kendrick, King, Nc
Kellar, Mayfeld, Neely, Overman,
Pittman, Ralston, Ransdell, Reed OF
Missouri, Robinson, Sheppard, Shields,
Simmons, Smith. Stephens, Swanson.
Trammell, Underwood, Walsh of
Massachusetts, and Walsh of Montana.
Republicans - Borah, Brandegee.
Brookhart, Bursum, Capper, Curtis.
Dale, Fernald, Frazier. Gooding, Hale.
Harreld, Howell, Johnson of Cali
fornia, Jones of Washington, keyes
Ladd, Mclean, McNary, Norris, Oddie.
Shortridge, Smoot, Spencer, Stanfield,
Sterling, Warren, Weller and Willis,
STANDARDIZATION of Mime
sofa and Shipstead.
The opposing votes were cast by
Senators Ball, Delaware; Cameron
Arizona; Colt, Rhode Island: Cum
Minis, Iowa; Edge, New Jersey: Fess,
Ohio; Lodge, Massachusetts,; McKfn-
ley, Illinois: Moses. New Hampshire
Norbeck, South Dakota; Pepper and
Reed. Pennsylvania; Phipps, Colorado
Wadsworth, New York, and Watson,
Indiana; all Republicans.
The following pairs were an.
nounced:
Stanley, Democrat, for; Ernst, Re.
publican, against; owen, Democrat,
for; Mccormick, Republican, against
and wheeler, Democrat, for; Elkins,
Republican, against.
OF those absent II was announced
the following would have voted for
passage:
La Toilette and Lenroot, Repubh
cans, and Copeland, Democrat.
No announcement was made for tn.
other absentees: Edwards, Democrat
and Couzens and Greene, Republicans
Debate for Three Hours.
Two Of the three hours of debate
possible yesterday under agreement
entered into previously, before vot-
ing on amendments and the bill, were
consumed in a fight to remove the
Treasury proposal providing for
Limitation on deductions in relation
to incomes from tax exempt securi-
ties. 1t was rejected. As to 81. This
removed from the bill practically the
last part Of the program recon-
mended by Secretary Mellon.
In the closing minutes Democrats
completed their income tax schedule
obtaining an increase in the personal
exemptions SO that all heads OF fam
lilies would be allowed $2,5Oos in the
present law heads of families with
CONTINUED on Page 2, Column g.