Evening star., 1924-04-12
SENATE RECEIVES
REVENUE BILL WITH
&Egoe
). ). ]. !. DEFICIT INDICATED
- &
Total Tax Reduction Exceeds
EsCt
S., :. .; Treasury Surplus by
.,o- r'
"a 5O,eoO,0Oo.

The revenue bill as framed by the
Senate finance committee has cut
taxes S50,9S9.444 below the Treasury
surplus available for reduction, Chair
man Smoot estimated today in the
committees report on the bill pre-
sented formally to the Senate.
This apparent deficit" for the next
fiscal year will he wiped out, Mr..
Smoot predicted. by an improvement
in business conditions expected to re-
suit from placing these, taxes upon
an economically sound basis
The bill is to be taken up for con-
sideration next Wednesday. mi
nority report. carrying the views of
the democratic members Of ,the COM
mittee, will be presented Monday.
Revenue Cut s434 4.72O.OOO.
net reduction in annual revenue in
comparison with the present law of
s454.120,00O. as against an estimated
cut of $446, 100000 under the measure
as il passed the House
The provision for IA - per cent re-
duction in the income taxes Of 1929
payable this year will save taxpay-
ers S232,150.00 the report estimated
Mr.. Smoot detailed the many
changes made in the technical admin
lstratlNe provision as well as in the
tax rate schedules.
PROVISION for increasing revenue
collections under the present law are
made in only three instances
through the new taxes on radio and
mah-Jong sets and a change in the
corporation tax.
Radio Tax $4,000. 200.
The 10 per cent tax on radio sets
and parts would net $4,000. 600 reve-
Rue annually, it was estimated while
the 10 per cent tax on NAH jong
would bring in $1,000. 900 annually.
increasing the corporation tax of
I'm to IA per cent would bring in
l04,0O0,000 additional revenue the
report held, while elimination Of the
special corporation stock tax would
cut off $50, 100000 The change would
decrease the cost of collection of
these taxes. it was said, and make a
more equitable distribution of the
burden of taxation"
The net reduction in normal taxes
under the committee bill would
amount to $95,000,0 900 and in surtaxes
TO 5000, 600, 600. The House bill would
have provided for a $3.50, 600. 600 slash
in normal taxes and for only $780,
Explains Income Rates.
- Referring to the cut in the income
taxes, made in accordance with the
plan of Secretary Mellon. the report
said this revision will give material
relief to all income tax payers, par
tirularly to the great majority
whose incomes fall in the lower
brackets"
The reduction of the surtax rates
to a maximum of % per cent ap-
plica BILE on incomes of 100000 and
over was designed, Mr.. Smoot eX-
planned. to fix the rates at a point
to insure a maximum of productivity
! and at the same time Ito remove
or lessen pressure which exists un-
der the present Surta& rates against
Investment of capital in productive
enterprise" Such "a revision or sur
taxes, he pointed out, had been rec
commended by the last three Secre-
tarieS of the Treasury.
The democratic plan for revision of
the income rates as proposed by Sena-
tor Simmons. North Carolina, would
make the maximum surtax rate 40
per cent on incomes of 100000 and
over and would reduce normal rates
below the committee plan.
Taxes restored to the bill which
were cut out by the House and the
amount of revenue involved follow:
Telegraph and telephones, $4,000
900; draft and promiSSory notes, 81
$50. 900. and billiard and pool tables
and bowling alleys, s1,050,000