Evening star., 1924-05-21
CONFEREES AGREE
UPON HIGH SURTAX;
PUBLICITY BANNED
Reduction of so Per Cent on
Incomes Under $4,000 Is
Also Adopted.
ESTATE RATES RAISED:
GIFTS To BE ASSESSED
Senate Democrats Yield on Cor
poration Provision to Prevent
Coolidge Veto.


Unanimous agreement was reached
today by the conferees on the tax
reduction bill
The Simmons Democratic income rate
schedule. providing for 40 per cen,
maximum surtax rate and a so per cen,
reduction in normal taxes on incomes
under $4,000 was accepted
Senate amendments providing for full
publicity of tax returns and tax OF
undistributed corporation profits were
rejected.
Estate Tax Increased.
The House provisions for 40 per
cent increase in existing estate tax
rates and for the imposition of a gift
tax with rates similar to the estate tan
rates were accepted.
Senate Democrats in Welding their
proposal for substitute corporation
tax and full publicity of tax returns
explained that they did so in expec-
tation that the bill would not be oh.
jectionable to President Coolidge.
Would Block Veto.
Hope was expressed by Senate Re-
publican organization leaders that
the bill as now framed would meet
the approval Of President Coolidge
who has declared opposition to both
the publicity and corporation pro-
poSalS. which were eliminated.
Although the Democratic income
tax schedule was accepted, Republi-
cans said il varied but little from
the Longworth compromise, approved
by House Republicans.
The report was not expected to get
before either the Senate or House
Tor approval today. Republican in
surgentS have indicated they Will de-
licity and corporation tax amend
mentS which were cast out.
Earned Income Rate Cut.
The provision for a % per cent re-
duction on earned incomes was re-
tanned, but the Senate amendment
restricting the amount to which this
cut could be applied TO $4,000 was
accepted.
4 compr omise was reached on a
cut in the jewelry tax. All articles
selling for $50 or less were exempted
from the per cent tax. The House
had set this limit at $40 and the
Senate at S25.
Senate proposals to exempt prod
nee and mercha ndiSe brokers from the
brokers tax and to restore the full levy
on billiard and pool tables and bowling
alleys were approved.
Deduction Limit Restored.
The treasury proposal to limit de-
ductionS on account of capital losses
to 1212 per cent was restored to the
In, do, nf
Secretary Mellon has estimated it
would increase returns in revenue by
S25,000.000 annually.
Chairman Smoot Of the Senate
finance committee estimated the bill
went Sl00,000,000 below the Treasury
surplus available for tax reduction.
This did not take into account the
cost of the bonus bill which it has
been estimated will require an appro-
priation of $50, 100000 for the next
fiscal year or other pending measures
calling for special appropriations.
Senator Smoot estimated. however,
that the deficit could be met through
increasing returns which would re-
suit from the stimulus to business
which tax reduction would bring.
AS compared with the present law
Mr. Smoot said the bill as framed
by the House would have cut revenue
by $445. 100000 in the next calendar
year. The measure as framed by
the Senate, he explained cut returns
by $557.120,000. As finally framed
by the conference it would reduce
government revenue by s472.62O,O00.
Income Tax Cut Remains.
The provision for 25 per cent cut
I'm income taxes payable this year re-
mains in the bill. Likewise, repeal
and reduction of many OF the excise
and miscellaneous taxes was not be-
fore the conference, since both bodies
had agreed to the changes.
Elimination of the Senate corpora
tion tax substitute leaves the present
corporation tax unchanged-a fat
l2k per cent corporation earnings
and levy of 81 for each $1,000 of
capital stock. No change had been
proposed in this tax by either Secre-
tary Mellon or the House.
The House provision opening tax
returns to inspection by certain con-
gressional committees was automati-
cally retained upon elimination of
returns as approved by the Senate.
However. an amendment was accept
ed, requiring the Internal revenue
bureau to post in addition to the
names and addresses of all taxpayers.
as now, the amount of tax paid.
An amendment offered by Senator
Jones, Democrat, New Mexico. to
open all hearings before the proposed
board of tax appeals was accepted.
Agreement was reached to exempt
from the 8 per cent tax all automo-
bile. trucks. the chassis of which sefl
for $1,000 or less and the bodies of
which sell for 5000 or less. The .
per cent tax on automobile tires,
parts and accessories was cut in half:
The Senate had proposed to repeal
entirely the tax on parts and acces-
sories.
The Senate amendment imposing a
10 per cent tax on NAH h-jong sets was
approved.
4 proposal by Senator Mckinney,
Republican, Illinois, to cut newspaper
mailing rates to the scale applying IN
1919. approved by the Senate, was
turned down. Likewise, the Senate
nronosal to increase from to 10 per
rent the tax on all coin operated slot
machines was rejected.
Approve Higher Exemption.
The Senate amendment proposed by
Senator Simmons increasing from
$4,000 to $4,000 the exemptions for
heads of families with incomes OF
more than $1,000 was approved. Heads
Of families with incomes OF less than
&. 600 now receive such an exemption
"a change was made in the exemp-
lions for single persons.
The House amendments, turned
down by the Senate. relating to stock
dividend taxes were definitely thrown
out. One proposed that gains from
The sale of stock dividends held for
more than period of two years
should be taxed under the higher sur
tax rates rather than the capital as
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