The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-01
1923 TAX CUT
IS APPROVED
IN COMMITTEE
Senate Finance Committee
Takes Action to Lower the
Last Years Income Tax
OTHER CHANGES MADE
Increase in Corporation Tax
Is Voted by the Senate
Republican Committee

Washington, April 1.-The pro-
! percent reduction on income taxes
| payable this year was approved un-
animously last night by the senate
finance committee.
This action was taken after day
in which the pruning knife had been
| used vigorously when the rate
schedules were taken up. Other ac-
tlon at the night session included
modification of the corporation tax,
| insertion of provision to prevent
issuance hereafter of tax-exempt Sc
curities, and rejection of a sales tax
proposal.
Increase Tax
1t was agreed to increase the cor
poration tax - 1-2 percent to II per
cent and eliminate the special tax on
| capital stock amounting to 81, for
each $1,000 of stock.
Senator Reed, Republican, Penn
| sylvania, who proposed the action,
said it would make no material
! change in the amount of revenue col
| lectcd from the source, but that
| present administrative difficulties
would be lessencd by elimination of
the capital stock tax. The vote on
| the motion was to 4.
Senator Reed also proposed the
| amendment, which was carried by n
similar vote, to make taxable the in
come from state and municipal Sc
curitfes hereafter issued. Opponents
| argued such action unconstitutional
| and would have to be brought about
| by Il constitutional amendment. Such
an amendment was defeated this
| session by the house, which also re-
jccted proposal such as was adopt
| ed last night.
10 Make Returns
| Approval of the reduction in in
come taxes, payable this year means
that, IL the bill is enacted into law,
only one half of the next tax in
1 stallment, due June Is, and only
three fourths of the last two install
ments will have to be paid. If the
tax has been paid in full, refund
! of one fourth will be made the tax
| payer.
The house amendment opening tax
returns to inspection by certain con-
| grcssiOnal committees, also was
modified somewhat. 1t was agreed to
make the returns open to the house
ways and means committee and the
| senate finance committee, as approx
ed by the house, but the house pro-
vision giving the privilege to special
congressional committees was chang
ed to include only standing or Sc
| lect committees Of either house of
congress when authorized by a re-
| solution. This is along the lines re-
Gently suggested by President Cool
idge.
Sales Tax Defeated
| Chairman Smoot's proposal of a
sales tax of one half of one percent
on all sales. with certain exemptions,
was. defeated by strict party vote
of 6 to 1 Some Republicans did not
vote while the Democrats solidly op-
posed it,,
Democrats Of the committee agreed
on a surtaX rate schedule which they
will propose as Il substitute for the
Mellon rates already voted into the
bill by the Republicans.
With report on the bill in sight
this week, the committee will make
further study Of estimates as to
cost of the soldier bonus bill passed
| by the house. Republicans of the
committee have expressed desire
that the bonus bill be reported out
first and decision on this is expect
ed to be made Immediately on com
| pletion Of the study of estimates.