The Birmingham age-herald., 1924-02-26
Increase In Estate And Inheritance Taxes Voted Into Revenue Bill !. MAJORITY ATTACKS BOTH AMENDMENTS Thirty Republicans Voted With
 Democrats On Inheritance Measure
 GREEN AND RAMSEYER
 AUTHORS OF PROPOSALS Chairman Green Of Wfys And Means Committee To Intro
 duce Gift Tax Today

WASHINGTON, Feb. 25.-(By As. sociated Press. )-An increase in the es. tate or inheritance taxes was voted into the revenue bill in the House today by another combination of democratic and republican insurgent forces. Another proposal of the coalition-a gift tax was before the house, when it adjourned
 Both amendments were attacked by organization republicans. The estate tax increase, raising the rates all along the line on the same brackets as now contained in the law to maximum of 10 per cent on the amount by which the estate of a decedent exceeds $lO,. 100000 instead of the present p pei cent rate was adopted 100 to no.
 Representative Ramseyer, republican Iowa, submitted the estate tax amend ment and Representative Green, repub' lican, Iowa, chairman of the ways and means committee, proposed the gift tax which will be voted on tomorrow About six democrats present voted against the estate tax amendment which was supported by about 30 re publicans, including Chairman Green ,n division vote.
 Credit For Estate Taxes Allowed
 An amendment also was voted to al low credit for estate taxes paid to states up to 25 per cent of the tax levied by the federal government. This was pro posed by Representative Frear, repubi- can insurgent, Wisconsin, in reply te the argument of Representative Miss republican, New York, that an increase In this tax would make it permanent part of the federal taxation system and eventually deprive states of a vital source of their revenue.
 Republican organization leaders re. main hopeful of compromise on the income rates when final vote is taken on the. bill notwithstanding the con i. tinued coalition of democrats and in. surgents. t
 Administration spokesmen let it bs known that if their tax reform pro gram as carried in the Mellon hill doc, not get through at this B6Hsion, 1t will bs brought up again next. winter. Sec retary Mellon believes che country will show it's favor toward his plan at thu elections this fall and that its success in the next Congress will be assured.
 Frear Denies Coalition
 Representative Freaf, speaking fo, the republican insurgents, issued state ment today declaring his group was mol disturbed over the Longworth com promise for a p per cent reduction il the surfax rates, which would cut tho maximum to 371h per cent instead oi the A per cent now in the bill. He called upon Mir. Longwirth to make public his plan, so that study might bt given it. MT. Frear also denied any for nal coalition with the democrats, de claring the insurgents supported tht democratic plan because it was tht next plan to our own." He called at tention that democrats had aided in de feating Stheir proposals for taxing present tax exempt securities.
 The entire day was spent on ths estate tax contest, but with vote 1T sight early tomorrow on the gift ta1 proposal, Chairman Green said tonight he expected reading of the bill to gel we'll into the excise rates by tomorrow night. where another fight impends oI proposed reductions in the automObil, taxes.
 Mr., Green proposed rates of 1 to 1( per cent on gifts, starting at amounts Tn excess of $1O,0O0 and applying thu maximum rate to amounts exceedins $46O0O. He announced tonight, how ever, that he would amend this to morrow to make the same rates a. carried in the estate tax voted today applicable to the gift tax.
 Garner Opposes Greens Rates
 k0 ne ranking democrat on the ways ana means committed, announced from tn, floor he would oppose the rates sug gested by Mir. Green, but would favol a gift tax, if carrying the estate ta1 rates. Both Mir. Green and Represents tive Garner argued the gift tax should be written into the law as a supple ment to the estate tax to prevent it evasion,
 The amendment, which Mir. Greer said he would present tomorrow, would allow tlle same exemptions as tn estate tt and also would exempt al gifts, bN one person to individual. which did not exceed $500 each il any .ear. This would permit pay n,ents nf bonus by such firms, Inc said. Charitable gifts also would bt exeihpte4. The estate tax starts Ut ons Ter cent on such amounts not in ex cess of S50,000. The gift tax would be applied to the total amount of gifts made Jby an individual during a year
 Chairman Green estimated the gifl tax would not net much more thaI [ million dollars, annually, but saiG l,y clIe, king evasion of the state tax it wps sxpected to result in both high CT estate tax regulations and higher income tax receipts.
 Service Mems Exemption Defeated
 Exemption allowed estates of former service men from the estate tax under tl,e present law was eliminated on mo tioh of Representative Fairchild, re publicsH, New York, who insisted tho mass oi enlisted men were not affected by such tax and the exemption re suited merely in discrimination in favor of relatives of rich army officers who served in the World war.
 An amendment proposed by Rep resentative Dickinson, republican, Iowa to place graduated tax on tax exempt securities in the estate of decendent was voted down 146 to 132.