Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-20
G. o. P. insurgents Vote With
Opposite Party on Stock
Dividend Tax,
HOUSE PRESSES REVENUE
BILL TO EARLY DISPOSAL
Adoption of Garner Income Tax
Plan Removes Section Causing
Hardest Fight.

Stock dividend profits would be
made subject to regular income rates
rather than the capital asset tax of
IL II per cent under an amendment
to the revenue bill adopted, Ice TO ZIP,
today by the House. The amendment
was proposed by Representative
Garner, democrat, Texas, and re-
ceived practically unanimous support
of the democrats, who were Joined by
about sixteen republican insurgents.
Representative Rainey, democrat,
Illinois, in arguing for its adoption.
declared it would bring enough ad-
dltional revenue to permit the repeal
of all automobile excise taxes. 1t
would subject the profits to much
higher taxes than III. per cent, as
provided now.
Representative Mills. republican.
gesture" and not possible of eff
fect1ve administration. The amend
ment is subject to another vote.
The capital gains and loss section
containing recommendation of Sec
rotary Mellon to limit capital, loss
deductions to 121. per cent withstood
further attack and was approved.
Representative Oldfield, democrat.
Arkansas, insisted all profits should
be made subject TO regular income
TdleS, Out MS motion was rejected.
Surtax Is Boosted.
The House pressed on with con-
sideration of the revenue bill today,
leaders hoping for speedy action in
view of the disposal yesterday of the
income tax section through the adop-
ton of the democrats substitute for
the Mellon schedule into the measure.
The rates adopted provide for d
maximum SurtaX Of "A per cent on in
of "a md TO-
normal tax rates OF . per cent on
incomes of $1,000 and under. per
cent on incomes between $4,000 and
$4,000 and per cent on incomes
above $4,000. Personal tax eXemp-
tons also were increased TO allow
$4,000 exemption for single persons
and $4,000 for heads of families.
This action, brought about by the
combined votes of the democrats and
republican INSURGENTS. settled the
main controversial point of the bill
as far as amendments TO separate
sections are concerned. y vote must
yet be taken on the entire measure,
however, and republican leaders
have indicated they will seek at that
time to have il recommitted to com
mittce and new income rates adopted
Begin Heading Of bill.
Reading Of the bill. section by sec
ton, for consideration of amend
n1ents was resumed as soon as
the income schedule was disposed
of and several of the administrative
features were accepted without dis
pute. The capital gains and losses
and earned income sections were the
sections first in order for consider
alton today.
The Garner rates were adopted in
the face of a compromise offer by
Representative Longworth, repub.
lican floor leader. to submit an
amendment to make the maximum
surtax rate 3T12 per cent instead OF
% per cent, as carried in the bill.
Republican insurgents refused the
offer. seventeen voting with the 203
democrats for the Garner amend
ment. Two other substitute propos-
ais already had been rejected, one. by
Chairman Madden of the appropria-
lions committee, providing for the
Mellon rates except for SurtaX max
imum rate of 90 per cent instead OF
25 per cent, and the other by Repre-
sentative F'rear. Wisconsin, republl-
can insurgent, calling for maxi
mum surtax of so per cent on in
comes Of 100000 and over and for q
so per cent cut in normal rates.
Earned Incomes Up Today.
The capita, gaint and loss section
taken up today carries a change rec
commended by Secretary Mellon to
limit the deduction on account OF
capital losses to 121. per cent OF
the loss. The present law limits the
tax on capital gains to 1212 per cent
but did not limit capital loss deduc-
tions. Enactment of the change
would increase revenues about $25.-
10000 annually, Mr.. Mellon esti-
mated.
The earned income section is a new
provision of the law, also recon-
mended by Mr.. Ia on. The commit
tee allowed a % per cent reduction
in taxes on earned incomes and
placed all incomes up to $4,000 in
this category. Incomes above that
amount up to $4,000 received from
wages, salaries. professional fees and
as compensation for other personal
services also are defined as earned.
ATTACKS DIGEST" DRIVE.