Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-28
INCREASE IN LEVY
ON CIGARETTES|S
CARRIED IN HOUSE

WASHINGTON, Feb. ga gift
tax was placed in the revenue bill
today by the house.
1t would impose a graduated scale
OF rates. from l to 40 per cent, but
would exempt amounts under $50,000.
The vote was 191 to 65. Democrats
voted almost solidly for the amend
ment, which was proposed by Chair
man Green, of the ways and means
committee.
On motion of Representative
Garner, Democrat, Texas, the house
voted to incraees the tax on cigar
cites from 81 to 81 per thousand.
He predicted it would have no eff
feet on cigarette consumption.
Representative Hawley, Republic
an organization, argued the increase
would cut consumption and result IN
an actual loss Of revenue, resulting,
he estimated in an additional tax OF
two cents on each flfteen-cent pack
age Of twenty cigarettes, and low
ering of tobacco growers. purses.
Representative Alternately, Demo
crat, North Carolina, denounced the
increase as discriminatory against
the state Of North Carolina, which
he said, paid more tobacco taxes
than any other state. The tax, he
declared, would force former soldiers
to pay their own bonus.
Tobacco growers associations were
voted the same exemptions as to-
bacco farmers or growers IN the pro
visions relating to leaf tobacco deal
ers on motion Of Representative
KincheIoe, Democrat, Kentucky.
Representative Mills, Republican,
New York, and Mr.. Green engaged
in sharp exchange during the
gift tax debate after the New
York representative had declared
Mr.. Green merely the nominal
chairman of the ways and means
COMMITTEE" He charged the Iowa
representative with changing his
splendid tax proposal to conform to
the desires Of Representative Garner
Democrat. Texas, the real leader IN
this tax fight.
Negotiations between Republican
organization leaders and insurgents
on the Longworth compromise IN
come rate schedule for the revenue
bill developed a definite break IN
the ranks of the latter group when
voted to put the Democratic rates
IN the bill.
Representative Woodruff, Mich1-
gan, one of the insurgent leaders,
said he would support the compro'
mise, providing for a 81 IL per cent
maximum surtaX rate and normal
rates of and 6 per cent on incomes
below and above $4,000, respectively,
in view of the increase voted In es-
tate taxes.
Representative Begg, Republican,
Ohio, who conferred with Mr.. Wood
ruff, said, however, that before the
Democratic rate schedule could be
thrown out Of the bill when it comes
up for final passage some OF the
Wisconsin delegation of eleven
members must be won over to the
compromise. Representative Nelson,
Wisconsin, declared members from
that state had not changed and
would support the Democratic rates
If a vote came again.
Mr.. Green's first gift tax amend
ment provided for a one per cent
tax on amounts of all gifts in excess
of $4,000 annually with a graduated
scale up to 10 per cent on amounts
of gifts in excess of $4,000 annual
ly, while the estate tax rates adopted
Yesterday provide for a one per
cent tax on amounts not in excess
of $4,000 with a graduated scale up
to 40 per cent on amounts in excess
Of $10,000000.
The same exemptions allowed I'M
der the estate tax would apply to
the gift tax, under the amendment,
with charitable gifts also exempted,
and the tax would apply to the to-
tai amount of gifts made by one per
son in a year, rather than to each
gift separately.
With the excise tax section next
in order after disposal Of the gift
amendments, Representative Long.
worth, Republican floor leader, said
he hoped for a final vote on the
entire measure by Friday.