Evening star., 1924-04-25
HOUSE AMENDMENT
ON DIVIDEND TAX
KILLED BY SENATE
Treasury Draft Making Gains
on Stock IL IL Per Cent
Is Favored.
Rejects CAPITAL LOSS
PLAN URGED BY MELLON
Chairman Smoot of Finance Com
mittee Seeks Immediate
Action on Bill.

The Senate went through in whirI.
wind fashion a series Of finance com
mittee amendments to the revenue
Dill today. agreeing to many, while
the most controversial were passed
over Tor future discussion.
While agreement was given to the
restoration of some of the excise
rates as cut down by the House
Chairman Smoot of the finance COM
mittee explained any of the amend
ments could be brought up later for
reconsideration.
The action today practically cleared
the boards for contests on the majo-
provisions of the bill, although con-
siderable debate is expected before
further action is taken.
The House amendment making
gains resulting from the transfer of
stock dividends in liquidation pro-
ceedings subject to regular income
tax rates rather than the capital gain
OF 12h per cen: was rejected in favor
of the Treasury draft making these
gains taxable at 12k per cent
Another House amendment met a
similar fate, the Senate rejecting a
proposal to make gains from the sale
Of stock dividends held for more than
two years subject to regular income
rates rather than the capital-gain
tax of 1914 per cent. This change
had been made by a close vote in the
House
Contributions to fraternal organi-
cations used exclusively for religious,
charitable, scientific, literary or edu-
cational purposes were voted exemp-
t!ons from taxation by the Senate,
as suggested by tho finance COM
mittee.
Mellon Proposal Rejected.
A proposal OF Secretary Mellon de-
signed to check capital loss deduc-
tions was rejected by the Senate to-
day without a record vote.
Less than score of senator's were
on the floor when this and several
other amendments were voted on
without discussion. Consideration of
tne income tax schedule, the heart
or the measure, was DELAYED by
agreement among the leaders on both
sides.
Secretary Mellon had estimated
sSeDoo,oU0 would be gained annually
by tne government through the cap
ital loss provision which was agreed
to by the House. The Senate fi6ance
committee opposed it because il con-
sidered 1t unfair in its operation.
Smooot Desires Action.
At the conclusion of speeches yes
terday outlining the views Of Repub-
licans and Democrats on the measure
Chairman Smoot of the finance COM
~
immediate reading of the bill today
although general debate on the
measure had precedence. All of the
controversial amendments, he said,
will be passed over for later action.
brought forward the Mellon income
tax schedule, placed in the bill by
the finance committee Republicans,
as the main point of controversy, with
a firm stand on the part of Republican
organization leaders tor the Treasury
rates indicated in the speech OF Chair
man Smoot.
Senator Jones, New Mexico, a Demo-
cratic member of the finance commit
tee. advanced the Democratic pro-
Mellon income schedule, the form OF
the corporation tax and advocating
Il graduated levy instead of the fiat
rate
Inc COTlInlIleo pEONlslOn eNeTnptlnE
from 10 per cent admission tax all
theater tickets selling for less than
so cents was agreed to.
Chairman Smoot made II clear, how
over, that reconsideration could be
had for any of the amendments.
The estate, gift, automobile, radio,
telephone and telegraph taxes were
passed over for future discussion.
Proposed 10 per cent tax upon NAH
jong sets and on all machines oper-
ated by coins were agreed to.
Without opposition the Senate
agreed also to the committee amend
ment proposing TO allow only articles
selling for SIS or less exemption from
the per cent jewelry tax The House
had voted exemption for all articles
selling for less than $40.
Exemption of produce and merckan-
disc brokers from the $50 brokers' tax
then was agreed to and restoration OF
the full $40 tax on billiard and pool
tables and bowling alleys was ap-
proved. The House had cut this tax
in half