Evening star., 1924-03-28
SENATORS TAKE UP
T CORPORATION TAX
Finance Committee to Con-
slider Other Miscellaneous
Schedules.

The Senate finance committee today
took up the corporation tax section of
the revenue bill, having concluded its
work last night on practically all of
the administrative provisions. Most
of the latter have been agreed to as
passed by the House.
The various miscellaneous and ex-
else tax schedules now will be taken
up in order. Most of these were re-
Tised by the House. which reduced
and repealed some of them to the ex-
tent of more than S10o,000,0 600 a year
on the basis of past returns.
With the Mellon income tax rate
schedule again in the bill, il is ex;
again revise these miscellaneous
schedules to conform more nearly to
the Treasury Secretary'S proposals
dealing with them, which did not
contemplate such extensive reduc-
The increase in the estate tax and
creation of the gift tax, made on the
floor of the House, also are expected
TO receive close scrutiny by the COM
mittee.
Senators Fail to Agree.
Democrats who have been working
on substitute income tax rate sched-
ule failed to reach an agreement yes
terday and are not expected to take
further action until the return OF
ranking democrat on the committee,
who has been called home by illness
in the family.
The surtax rates proved the
stumbling block. Senator summons
OF North Carolina, ranking democrat
on the committee. presented a sched-
ule which it is understood followed
the general lines Of the Garner plan
supported by House democrats, with
a revision of the brackets and re
duction of the maximum rate to about
40 per cent.
At a session last night the Senate
finance committee voted to increase
from % to 80 per. cent the tax on the
income of corporations formed for
the purpose of evading the surtaxes
II also was agreed to exempt heads
of families with incomes of less than
$500 from filing tax returns. The
present law carries provision,
agreed to by the House, requiring
heads of families with incomes OF
$4,000 and over to file returns.
Consider Bonus Issues.
Before taking UP the revenue bill
yesterday the committee heard Army
and Navy officers on the soldier bonus
bill passed by the House, with view
TO determining the number of vet
Grams who would be eligible for the
insurance provision and the average
length of service of the veterans.
While representatives of the Navy
and Marine Corps said their records
would be able to show the figures
needed, Army officers explained con-
siderable work would be required to
lay the foundation for administra-
tion of the proposed BILL
AS a result, Chairman Smoot de-
clared, costs of administration of the
measure would amount to millions
of dollars"
May Call Caucus.
Quick action on the bonus measure
is expected when it is formally pre-
sented to the committe, republicans
indicating yesterday there was a gem
eral disposition among their group
TO favor the bill passed by the House
against the modified insurance plan
advanced by Chairman Smoot. The
latter calls for policies payable only
at death, rather than of twenty
year endowment, as in the House bill,
and would cut out the borrowing
privilege on the policies allowed by
the House. Democrats are expected
10 stand for a full cash payment op-
tion.
Democrats at their meeing yester-
day afternoon also discussed the call