Evening star., 1924-02-07
TAX BILL REPORTED
WITH q PCT. CUT
IN INCOME ELEV|ES
Approved by House Commit
tee, IS to 3-8 Demo-
Gratis Vote "Present."

The new revenue bill providing for
a complete revision Of federal taxes
and for 25 per cent reduction in
ably reported to the House today by
the ways and means committee.
The vote was Is to 3. eight Of the
eleven democrats on the committee
voting present" with the announce
ment that they opposed income tax
rates fixed by the republicans Gin pri-
vate on the lines suggested by Sec
retary Mellon, but that they did not
wish to delay reporting Of the bill.
The Mellon income tax rate adopted
by the committee provides for a re-
duction from to per cent in the
normal tax on the first $4,000 Of net
income and from 8 per cent to per
cent on the remainder Of the net in
come. The maximum surtax rate was
reduced from so per cent to 25 per
cent on incomes Of 100000 and over
and was begun at l per cent on net
incomes of $4,000 instead of at $4,000.
The revenue measure provides for
a saving of about $320.000,0 900 an
n1Ially. based on the revenue receipts
of 1921. and for about s225, 200. 900 in
income taxes payable this year on
1923 incomes.
About s115.ooo.00o of the loss in
revenue will be suffered through re-
ductions in the indirect war excise
taxes. many OF which were repealed
entirely. The remainder results from,
the cut In income rates.
The House today began considera-
tion Of the constitutional amendment
to prohibit the issuance of tax-exempt
securities. a feature of the tax re-
vision scheme suggested by Secretary
Mellon.
Will Vote Tomorrow.
Eight hours Of debate were allowed
for the amendment resolution under
a special rule adopted by the rules
committee, and vote on the measure
will not be reached until tomorrow.
Determined opposition. largely from
the democrats, developed against the
resolution. which was adopted by the
House last year, but was not voted
upon in the Senate. In view OF this,
proponents of the amendment, includ-
Ing Representative Green, republican.
Iowa, Its author. were apprehensive
of its success, a two-thirds vote being
necessary for passage.
The resolution in effect grants the
federal government power to tax
state and municipal securities. and
likewise would permit city and state
governments to tax federal securities
Secretary Mellon has estimated that
about $11, 900. 100000 is invested in
state and municipal securities which
cannot now be taxed by the govern
ment.
Couxens Attacks Mellon.
Lax enforcement and faulty admin.
istrative provisions in the tax law
, were charged today by Senator
Couzens, republican, Michigan, in a
letter to Secretary Mellon. with re-
sponsibility for the cutting down IL
federal government revenues.
Referring to the testimony of G.
T. Stanford, counsel for Harry F. Sin
clair, in the Teapot Dome investiga-
tion, that the matter of reduced tax
alton was one Of the considerations
In the organization of Mr.. Sinclair's
declared the Treasury Secretary was
making no efforts to get at such cor.
porations.
You rather are playing directly
into their hands," he said. For ex-
ample you are selling billions of dol
lars Of government securities at un-
reasonably high rates of interest.
, the banks over $100.000.0O0 in ex.
cessive interest rates and you did this
even though the banks pay no In
come or corporation taxes on gov
ernment securities. Your own bank
the Mellon National of Pittsburgh
holds nearly forty millions on which
1t pays no taxes whatsoever. The
Chase National of New York is re-
ported to hold nearly eighty millions,
INontiDnod on T1o0a o Col,,n,n SI