The Republican. [volume] (Oakland, Md.) 1877-current, 1924-05-29
S475,OOO,OOO TAX
CUT is AGREED ON
Incomes Under $4,000 to Pay
Half Present Rate in 1925;
Surtax 40 Per Cent.
ONLY PARTIAL PUBLICITY
Senate Democratic Income Rates
Conform Closely to Longworth Plan;
Jones Graduated Corporation Levy
Killed; Present Rates Retained.

hington.-Senate and House
conferees reached a complete agree
ment on the tax revision bill. The
Simmons surtax and normal income
tax rates were adopted. The Jones
amendment for a graduated corpora
ton tax was knocked out. The pub
Ecity provisions OF the Senate bill
were eliminated, and the House estate
tax plan was adopted.
The maximum of the Simmons
surtax rates is 40 per cent The
Simmons normal tax rates are
per cent up to $4,000, per cent up
to $4,000 and 6 per cent beyond $4,000.
They amount to so per cent reduc-
ton from existing law on incomes I'M
der $4,000. The Simmons exemptions
are retained. Under them there is a
fiat $500 exemption for the head of
q family.
The bill provides for 25 per cent
reduction on income taxes due this
| year.
With the Jones tax proposal aban-
doned and the publicity amendments
modified, Republican leaders, includ-
ing Senator Smoot and Representa-
tives Green and Longworth, expressed
| confidence that the President would
sign the bill, even though it involved
an apparent deficit of 500, 1000.
This deficit and the 1852 900 re-
quired for the first years operation
of the bonus, could be absorbed by
! present and future income of the Gov
eminent, it was said
Expressions on the bill were not
| forthcoming from the White House,
but certainly there was no pessimism
at the Capitol.
A tax cut of S472, 100000 is made
! through the bill as the conferees ar
ranged it, according to Senator Smoot,
/ who added that as the Government
surplus for the calendar year 1925
(the first in which the tax applies)
would be S372,000,00C to 372,500, 900.
The bill as it came from the House
would have reduced the revenues
! S445, 100000, and as it passed the Sen
ate s557,120,000. The agreements in
conference put back SS4 1900 900 in
taxes stricken out by the Senate
The Democrats were highly pleased
by what they termed a victory. Sen.
ator Simmons said that while most
CT the administrative provisions OF
| Secretary Mellon had been retained,
! on he OfI haa Ill
on the income taxes proposed by the
minority had been kept, thereby
making it, as we claim, a Democratic
| bill except in the administrative fea-
lures"
Retention of the Simmons surtaxes
pleased the Senator, and Mr.. Long.
worth did not appear displeased, al
though, instead of stepping at $780,
900 where his plan levies 37b per
cent and Mr.. Simmonss 80 per cent,
the Democratic rates went up two
brackets further.
Throwing out the Jones corporation
| tax means that II the bill is accepted,
the present normal corporation levy
| Of 1872 per cent and the additional
capital stock tax of 81 per 81 900 will
be re-enacted
In dealing with publicity of tax
matters, the conferees evidently yield
ed to sentiment in both houses that
there must be some degree of public
ity. The Jones amendment, as ap-
! proved, directs the Board of Tax Ap-
peals to hold open hearings on all
tax cases, but whereas the Senate
wording made it mandatory that there
must be written and published evil
dence in each of these cases, the con-
ferees inserted clause making this
documentary proceeding apply only to
cases involving $4,000 and upward.
Another amendment regarding pub
licity which was accepted was a
House provision that standing or spe.
cial committees OF either house should
have access to tax facts and could
subsequently report to Congress any
relevant or useful information"