Evening star., 1924-01-29
House Committee Disposing Of Last
of Minor Details.

Revision of some administrative
features Of the revenue bill and some
new special tax proposals were con-
sidered today by the House ways and
means committee preparatory to TAX
ing up the income tax rate schedules,
the heart Of the tax revision pro-
gram.
Acceptance yesterday OF the recon-
mendation of Secretary Mellon to al
low special reductions in the taxes
on earned incomes disposed Of the
!ast major section of the bill other
than the income rates.
chairman Green's suggestion for a
9ift tax was among the subjects be-
tore the committee today Such q tax
$50 has been advanced by some
members of the House as A means OF
blocking evasion of the inheritance
tax through gifts.
With approach OF the income tax
rates discussions House republican
leaders and majority members OF The
cOfnmittee moved to unite their forces.
The republicans are divided on
whether to take up these rates In the
full committee or write their own in
private conferences. They also ara at
ODDS on the surtax rates, some of
the leaders from the midwesterp
states favoring higher surtaxes than
proposed by Secretary Mellon. but
Gratis.
Adopt IS Per Cent Cut.
adoption. by the ways and means
recommendation to allow q special 25
per cent reduction in the tax on
earned incomes was the first direct
Denent 70 income taxpayers since the
proposal was received in the House.
s,aas axso.e incomes under $4,000 were
the reduction. while $4,000 was set
as the maximum amount OF income .
on which the reduction could be
taken. 70
Treasury estimates show that abou.
less than $4,000. and autonaticaIiv
could deduct from their tax when
computed 25 per cent of It's total
Thus, a married man with two chill
oren. who now pays a tax OF S2s on
an an income Of $4,000, would pay only
$3.50, this figure not taking into &C.
count any normal income tax reduc-
committee.
Recommended by Mellon.
Secretary Melons recommended ton
Tor special reduction in the taxes on
earned income provided for the rs
per cent rate to apply on such in
comes of any amount and defined
80 t1SA ihSoiHcS AS tNOSG received from
wages, salaries and professional serv-
ices. Representative Garner, author
OF the democratic tax plan, accepted
the earned income proposal in his
plan, but suggested a reduction of
8Ss per cent. The 25 per cent rate,
however. will stand. in committee.
Chairman Green said, because no
amendment was offered to change IL.
On earned incomes above SIS 900, the
dvN'nitton of Mr.. Mellon also will hold.
Mr.. Garner moved today to define
earned income as reasonable com
pensation or allowance for personal
sercce where income is derived from
personal service and capital
in the prosecution by unincorporate ed
persons Of agriculture or other bust
ness" This was defeated by a strict
party vote. and the motion Of Repre-
sentative Mills. republican, New
York. to declare all incomes under
$4,000 as learned" adopted. =. :.
In setting $ maximum amount of
earned income for the deduction, the
motion OF Representative Treadway,
Massachusetts,, proposing
$4,000 was adopted. representative
Mclaughlin. republican, Michigan.
suggested $4,000; Representative
Bscharach, republican. New Jersey,
S35. 600, and Representative Carew,
democrat. New York. $4,000. -