Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-06
Would Not Provide Funds for
Working Expenses of Gov
eminent, Exclusive of Bonus
Bill or Other Extra Measures
TO Tell Senate Committee
Today

Washington, March 5-The tax re-
duction bill passed by the house will
have to be remodelled to provide for
s100,000,000 more revenue, Chairman
Smoot of the senate finance commit
tee announced tonight on the eve of
consideration of the measure by that
committee. Basing his calculations
on estimates reported this week by
the treasury department that the
house bill would would cut off s446,-
100000 in revenue in the calendar
year 1925, Mr.. Smoot said this would
fail by $100,000,000 to provide funds
for the working expenses of the gov
eminent alone, exclusive of 4 soldier
bonus bill or other pending extra APP
preparation measures.
Mr.. Smooth declared that I'M
Goubtedly some of the tax rates
would have to be changed to meet
this expected deficit but expressed no
opinion as to what taxes would be
affected pending consideration of the
bill by the senate committee. The
principal tax reductions made by the
| house were in the personal income
taxes, the miscellaneous or excise
taxes and Il special deduction of %
per cent on earned incomes.
This situation will be presented to
the committee tomorrow by Senator
Smooth when it holds it's first session
for consideration of the bill.
With tax legislation thus getting
under way in the senate, Senators
Watson of Indiana, a member of the
finance committee and Moses of New
Hampshire, Republicans, called on
President Coolidge today to inform
him of the present outlook for the
ILL there. They expressed the opin-
ion at the white house that the bill
would be amended in committee to
carry substantially the Mellon in
como rates.
The bill as reported out by the
house ways and means committee,
carried these rates but they were
substituted first by the Democra tic
income tax plan and later by the
Longworth compromise schedule
which was adopted with the support
of tho Republicans as 4 unit.
The LongWorth rates il the bill
provide for q maximum SurtaX of 81
Il per cent on incomes above $780,
600 while tho Mellon rates carried Il
maximum surtaX of % per cent
above 100000.
A determined effort is expected to
be made by administration Republi-
cans to eliminate the house amend
ments to the bill providing for in
creascS in the estate taxes insttu-
ton of gift tax, and opening of in
come tax returns to certain congress
SiOnal committees
On the other hand some Demo-
Gratis have Indicated they will not
only seek to retain these amend
ments, but will attempt to broaden
the scope of income tax return in
spection to make the returns virtu-
ally public records.
Although the attitude OF Republi-
can insurgents. led by Senator La
toilette, Wisconsin. has not been
definitely indicated. the insurcent
group in the house voted with the
Democrats on their income tax
schedule until Republicans raised the
surtaX limit to 81 Il per cent and
reduced the normal tax rates 4
statement issued during the tax fight
in the house by Representative Mel
son and Frear, Wisconsin. leaders of
the insurgcnt group there. declared
the work of tax reform will be fur
Their carried out by progressives in
the senate"
While Democrats have not outlined
any stand, some leaders have indi-
Gated they will support plan similar
to that advanced by their party in
the house for A per cent maximum
SurtaX rate above $4,000