Evening star., 1924-04-01
SMOOT SEES EARLY
TAX BILL PASSAGE
Tells Senate Measure Will
Be Disposed of Before
Convention.

Congress will enact tax reduction
measure before it adjourns or recesses
for the national political conventions,
Chairman Smoot of the Senate finance
committee declared today in the Senate.
Called upon by Senator Walsh of
Massachusetts, democrat on the
there had been no unnecessary de-
lay in the handling of the tax meas
ure Senator Smoot said:
Il want to say to the people OF
the country that the Congress is not
going TO adjourn until a taX-reduc-
tion bill has become a law. There
has been an effort on the part OF a
great number of people, particularly
some of the business people, to max e
il appear there is going to be no tax
legislation at this session.
Has Given Assuranccs.
II have answered all such inquiries
addressed 20 me by saying that l know
there is going to be tax reduction
Asked by Senator Robinson of Ar
kansas. the democratic leader, as to the
accuracy of a statement that he mad
told President Coolidge tax bill could
not be enacted before June 10, Senator
Smoot denied that he had made any
such statement.
II don't see what can happen to
hold tax legislation in Congress until
there is an absolute filibuster against
it,
Mr.. Smoot agreed with Senator
Robinson that there had been no in
dication of a filibuster either in COM
mittee or in Congress
Hopes for Report Next Week.
The finance committee hopes to
complete consideration of the bill Sat
urday, Chairman Smoot said. and to
"Is it the purpose of the committee
to report the revenue bill ahead of
that dealing with adjusted compensa-
tion?" asked Senator Robinson.
The bonus bill hasn't been consid-
cred by the committee, or, indeed, |
might say, even by the members out
side the committee room, Senator
Smoot replied.
the extent of describing the steps he
had taken to obtain an estimate of the
bonus cost from Treasury experts and
to "analyze the reasons for the large
variance between this and the House
estimates"
Income Tax Cut Voted.
Unanimous approval of the provi-
sion in the revenue bill for a 25 per
cent reduction on income taxes pay
able this year was given last night
by the Senate finance committee.
Other action by the committee in
cluded change in the corporation tax,
insertion of a provision to prevent
issuance of tax exempt securities, and
rejection of a sales tax proposal.
1t was agreed to increase the cor
poration tax of 12k per cent to IA
per cent and eliminate the special
tax on capial stock amounting to 81
for each $1,000 of stock.
Senator Reed. republican, Pennsyl-
vania, who proposed the action, said
1t would make no material change n
the amount of revenue collected from
this source, but that present admin
istrative difficulties would be leSsaned
by elimina ton of the capital stock
tax. The vote on the motion was 5
to 4.
Call Amedment Illegal.
Senator Reed also proposed the
amendment, which was carried by a
similar vote, to make taxable the in
come from state and municipal Sc
curitieS hereafter issued. Opponents S
argued such action was unconStitu-
tional and would have to lie brought
about by a constitutional amendment.
Such an amendment was defeated
this session by the House, which also
rejected a proposal such as was
adopted last night.
Both the corporation tax change
and the tax-exempt securities pro-
posal were carried by non-partisan
(Cyontinued on Page ( Column