Evening star., 1924-03-24
SPEED UP WORK
ON REVENUE BILL
Senators Defeat Plan to Linn
it Capital Loss Deductions.
Prepare for Fight.

The Treasury provision in the reve-
nue. bill limiting capital loss deduc-
tions to 12H per cent was turned
down today by the Senate finance
committee and the present law, which
does not restrict such deductions, re-
tained.
A House amendment which would
make gains from the sale of stock
dividends subject to normal income
tax rates rather than the 12h per
cent capital gain tax was also elini-
mated.
Plans Night Session.
1t was estimated by the Treasury
that the capital loss deduction pro-
vision would bring in about sSo,-
100000 additional revenue annually.
The House anne endment was proposed
by Representative Garner, democrat,
Texas
Announcing the revenue bill would
be rushed along with all possible
haste, Chairman Smoot today ordered
night sessions of the committee.
Preparatory 10 asking the committee
to decide on the question of priority
between the bonus and tax bill Mr.
Smoot issued additional estimates on
tRe probable expense of the bonus
would cost s4,S56,750.0S7. against
ST. 9.s0o,000. which Chairman Greer
OF the House ways and means com
mittee believed would be the cost.
Prepare Income Fight.
The income tax rates will be the
first of the schedules up for action
and both republican and democratic
members hurried their plans today
TOT the contest expected to deyelor
on this section. Republican mem
berS with the exception of Senator
La Toilette of Wisconsin, the -insurg-
ent leader, have indicated that they
favor the Mellon proposals, while
the democrats are working out n new
compromise which follows somewhat
ii is understood, the general lines
or the Garner plan supported by
House democrats.
Secretary Mellon has added his
voice to the movement TO separate
the provision for a 25 per cent re-
duction in income taxes payable this
year from the revenue bill and bring
about its approval in a separate reso-
luton. In d letter to Representative
Ackerman, republican, New Jersey,
Mr.. Mellon said he favored from d
practical standpoint the plan en-
bodied by the House in the revenue
bill allowing % per cent deductions
on each quarterly installment as il
falls due rather than elimination of
the September installment payments.
Letter OF Mellon.
The Secretary's letter to Mr.. Acker-
man said:
Your resolution provides in sub
stance that taxpayer paying per-
sonal income taxes in 1923 in quar-
terly installments may omit the Sep
tember II installment, and if he has
paid in full on March ) he is en-
titled to a refund of one-quarter OF
the amount paid, after his return is
audited by the Treasury. With the
principle that il is advisable to per
nit the taxpayers to get the benefit
of the expected surplus in 1924 by a
reduction of % per cent of the tax
payable in the calendar year 1924 l
am thoroughly in accord. There may
be considerable administrative diff
Guilty in the particular method which
is contemplated by the resolution.
1T seems to me il would be simpler
and certainly preferable from the
standpoint of the Treasury, If the
plan incorporated in the revenue act
of 1924 in the form il was passed by
the House were adopted in Il separate
resolution. Under this plan, il the
resolution We're passed before June
Is. the taxpayer could take on that
day a credit of 25 per cent of his
March payment plus % per cent of his
June payment; in September he could
take % per cent of his September
payment and in December 25 per cent
of that payment. IL he had paid in
full in March he would have refunded
the IS per cent credit"