Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1924-02-14
FINAL TERMS OF
TAX BILL VOTED
Reduction Measure Is Or
dered FavorabIy Reported
to the House.

Washington.-T federal tax reduc-
ton bill was started on its way to
passage or defeat.
BY a strictly partisan vote the ways
and means committee ordered the bill
favorably reported to the house, the
fifteen Republican members voting for
it, three Democrats voting against 1t,
and the other eight Democrats voting
present"
Debate on the tax bill is expected to
continue for two or three weeks.
The bill, as approved by the ways
and means committee, is satisfactory
to Secretary Mellon, although some
changes have been made in the origi-
nal treasury draft.
The principal changes made by the
committee in the original treasury bill
are the following:
The bill contains a provision by
Chairman Green for reduction OF 20
per cent in the tax payable in 1924
on the income of 1928.
The definition Of earned income is
changed to provide that at least $4,000
vof the income of a taxpayer shall be
considered to be earned, and that in
no case shall the earned net income
of a taxpayer be. considered to be in
excess of $4,000.
The secretary of the treasury rec
commended the repeal Of the tax on
telegraph and telephone messages, and
the tax upon admissions. The ways
and means committee approved the re
peal o. the tax on telegraph and tele-
phone messages, but only partially re
peal the tax on admissions, and in
stead repealed or reduced a consider
able number Of miscellaneous excise
taxes
Changes made in the committee bill
from the provision Of existing law are
enumerated in the following summary
prepared for the ways and means com
mittee by treasury experts:
The normal tax on the first $4,000
of net income is reduced from per
cent to 3 per cent, and upon the re-
mainder of the net income from s to
6 per cent.
The surtax rates are reduced so as
to begin from $4,000 to $4,000; an
additional i per cent Is added for each
$4,000 of net income up to $4,000; /
per cent additional is added for the
next $4,000 of net income up to $40,-
600, and then / per cent additional is
added for each $4,000 of net Income
up to maximum Of Is per cent at
100000 and over
The tax on earned income is, re-
duced by % per cent of the amount of
the tax attributable to the earned in
come.
The tax on telephone and telegraph.
messages is repealed.
The tax imposed upon admissions
by 9itSe VIZ is changed to apply only
to admissions in excess of so cents.
The tax imposed upon candy, knives,
dirks, livery and hunting garments
and yachts by paragraphs (6), (8),
(9), (13) and (14) OF section 900 Of
Title TX is repealed.
The tax imposed upon carpets,
trunks, ValiseS, purses, lighting Tx
lures and fans by section 9O4 of Title
TX is repealed.
The tax imposed upon jewelry by
section 9o5 of Title TX is changed so
as not to apply to articles sold for
less thin $40 nor watches sold for
less than $50
The tax imposed upon proprietors
of theaters, circuses and other public
exhibitions by paragraphs %, (6)
and "a of section 1000 is repealed and
the tax imposed upon proprietors of
bowling alleys and billiard rooms by
paragraph 90 is cut in half.
4 The tax imposed upon sales of
produce by paragraph az of schedule
A of Title TX (stamp taxes) is re-
duced from two cents to one cent.