San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-08
STRICTLY PARTY VOTE
Scope Of Tax Cuts Narrow
ed From Those House Il
Bill Provided.
WARNING OF DEFICIT
Senate Committee to Take
Up Bonus Wednesday
Or Thursday.

Washington, ID. c.. April s.-The
new revenue bill was ordered favor.
ably reported to the Senate today By
the finance committee.
1t provides. as reported, for a retro
active reduction of % per cent on
1923 income taxes which are payable
this year; permanent revision of the
income tax rates in accordance with
the plan of Secretary Mellon; spe-
cial reduction of % per cent in taxes
on earned income, and repeal of many
of the miscellaneous and excise
taxes.
The scope of tax reduction was mar
rowed, however, from that provided by
the House bill. warning Of treasury
deficit under its terms, leaving forced
restoration of some of the miscel-
laneous taxes stricken out during
House consideration of the measure.
Strictly Party Vote.
The measure was ordered reported
on a strictly party vote, nine to seven.
Democrats announced their opposition
was based on the Mellon income rates
SCHtuule tdTTleu ny the plll.
The committee will be called either
tomorrow or Thursday to take up the
soldier bonus bill. Chairman Smoot
said. He predicted that not more than
three ill be required TO get report
on the bill. The chairman does not ex-
pect to call the tax bill up for con-
sideration in the Senate before the
middle of next week.
l.
Smoot estimated the tax bill would
fail by $50 100000, of raising suffice
lent revenue to meet the regular gov
eminent expenses in the first year ct
its operation This estimate did not
take into account, he added, speclaI
appropriation bills which might be
passed by Congress this session. in-
Guiding the bonus bill, which it has
been estimated would require ali ex-
penditure of S13J,000,OOO the first
year.
In winding up consideration of the
measure, the committee re-affirmed its
action of last night eliminating the
treasury provision to tax indirecteiy
the income from tax exempt securities.
This provision. il was estimated.
would have netted the government
SOO,UUU,UUt dnuudlly.
Protest Is Heard.
A protest against the section limit
ing deductions on gross incomes on
account of interest payments was
made to the committee by Governor
Richie of Maryland. Senator Smoot
said the constitutionality of such
provision was somewhat in doubt. The
question will have TO be decided on the
floor.
The Democrats have served notice
they will propose several changes in
the tax schedules. particularly as re-
CARDS the Mellon income tax rate vot-
ed into the bill by the Republicans in
place of the Longworth compromises
rate adopted by the House. The floor
fight is expected to hinge largely ON
the rate schedules. Practically all the
administrative provisions were agreed
to by non-partisan votes.
Among the miscellaneous and excise
tax rates which will be taken up on
the floor are the automobile taxes,
Senator Walsh CDemOcrat). MaSse-
chusetts, advocating repeal of the tax
on tires. parts and accessories instead
of the cut in half voted both by tie
House and the committee.
The corpora ton and several OF the
nuisance taxes also were TO be con-
tested on the floor. Senator Jones
(Democrat). New Mexico. plans to Of
fer a graduated scale of rates IN place
of the flat corporation tax Of IA per
cent approved by the committee.