Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-02-20
PROCRESSIVES
THROW SUPPORT
TOCARNER PLAN
Income Tax Section Passed
Last Night by Combined
Votes of Democrats and
Insurgent Republicans

WASHINGTON. Feb. 20-The house
pressed WI with consideration VI the
revenue bill today, leaders hoping for
speedy action in view of the disposal
yesterday OF the income tax section
through the adoption of the democrat
Il substitute for the Mellon schedules.
The rates adopted provide for
maximum surtax or IA per cent on In
comes Of $4,000 and over and for nor
mai tax rates WI two per cent on in-
comes Of $1,000 and under, four per
cent On incomes between $4,000 and $8.-
600. and six per cent on incomes above
$4,000 Personal tax exemptions also
were increased to allow $4,000 exemp-
tions for single persons and $4,000 for
heads vi families.
This action. brought about by the
combined votes vi the democrats and
republican insurgents. settled the main
controversial point of the bill a. far ~
amendments 70 separate sections are
concerned. "A vote must vet he taken ON
the entire measure, however and rep
ublican leaders have indicated they
will seek AZ that time 10 have IL re-
committed 70 committee and new in
come rates adopted.
Reading ~ the bin section BY section
for consideration al amendments was
resumed Us soon ~ the income sched-
ule was disposed of and several of the
administrative features were accepted
without debate. The capital gains and
losses ard earned income sections were
the sect ons first in order for consid-
Grafton today.
The Garner rates were adopted In the
face or n compromise offer by Repre-
sentative Longworth. republican floor
leader, to submit an amendment to
make the maximum surtax rates 37M
per cent instead Of p per cent as car
ricd in the bill. Republican insur-
gents refused the offer. between vot-
inE with 203 democrats for the Garner
amendment.
Two other substitute proposals al
ready had been rejected. one by Chair
man Madden Of the appropriations
committee providing for the Mellon
rates. except for a surtax maximum
rate a % per cent instead of 25 per
cent. and the other BY representative
Frcar. Wisconsin. republican insurgcnt,
calling for a maximum surtax Of so per
cent on incomes of 100000 and over
and for fifty per cent cut IN normal
rates.
The capital gain and loss section tax
en- up today carried a change recon-
mcndcd hy Secretary Mellon TO limit
the deduction on account Of capital
losses To 12ia per cent Of the loss. The
present law limits the tax on capital
gains TO 12ia per cent. but does not Ii
NIT capital loss deductions. Enact
ment Of the change would increase re.
venues about S25.00O,OOO annually. Mr.
Mellon estimated.
The earned income section ~ n new
provision of the law. also recommend
ca by Mr.. Mellon. The committee AL
lowed - per cent reduction III taxes
on earned incomes and placed all i'm
comes UP To ~ 600 IN this category. In
comes above that amount up to $20,-
600 received from wages. salaries, pro-
fessional fees and compensation for
other personal services also are defin-
ed ~ earned.
Stock dividend profits would be made
subject 10 regular income rates rather
than the capital asset tax Of 1914 per
cent under mn amendment 70 the reve-
nue. bill adopted today By the house.
The amendment was proposed by Rep
rcsentativc Garner. democrat. Texas
and received practically unanimous sup
port OF the democrats. who were joined
by about sixteen republican insur-
gents. The vote was 162 10 l12.