Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-24
CONFE:RE|::E::S ADOPT
DEMOCRATIC TAX
RATE ON INCOMES
Publicity of Returns and Levy
on Undistributed Profits
Is Sacrificed

WASHINGTON, May 21.-Unan'
imous agreement was reached today
by the conferees on the tax reduc-
ton bill.
The Simmons Democratic income
rate schedule, providing for 40 per
cent maximum sur tax rate and a
so per cent reduction in normal
taxes on incomes under $4,000. was
accepted.
Senate amendments providing for
full publicity Of tax returns and q
tax on undistribuest corporation
profits were rejected.
The house provisions for 40
per cent increase In existing estate
tax rates and for the imposition of a
gift tax with rates similar TO the
estate tax rates were accepted.
Senate Democrats, in yielding their
proposal for a substitute corpora
ton tax and full publicity of tax
returns, explained that they did so
in expectation that the bill would
not be Objectionable to President
Coolidge.
Although the Democratic income
tax schedule was accepted, Repub-
licans said it varied but little from
the Longworth compromise approved
by house Republicans. x
Hope for Presidents Approval
Hope was expressed by senate Re
publican organization leaders that
the bill as now framed would meet
the approval Of President Coolidge,
who has declared opposition to both
the publicity and corporation pro
posals, which were eliminated.
AS compared with the present law
Mr.. Smoot said the bill as framed
by the house would have cut revenue
by $445, 720 900 in the next calendar
wear. The measure as framed by the
senate, he explained, cut returns by
1857, 120, 900. AS finally framed by
the conference, it would reduce gov
eminent revenue by $472 ,620,0
Senator Smoot estimated, however
that this deficit could be met through
increasing returns which would re
suit from the stimulus to business
which tax reduction would bring.
This Years Cut Remains
in incomes tax payable this year re
mains in the bill. Likewise, repea
and reduction of many of the excise
and miscellaneous taxes was not be
fore the conference, since both bod
les had agreed to the changes.
Elimination Of the senate corpora
ton tax substitute leaves the presen1
corporation tax unchanged-a flat
Il IL per cent corporation earnings
and a levy of 81 for each 900 Of
capital stock. No change had beer
proposed in this tax by either Score
tary Mellon or the house.
The provision for a % per cent re
duction on earned incomes was re
tanned, but the SEN > amendment
restricting to $40, 900 the amount tC
which this cut could be applied was
accepted
A compromise was reached on &
cut in the jewelry tax. All articles
selling for $50 or less were exempted
from the five per cent tax. The
house had set this limit at $40 and
the senate at $25.
Senate proposals to exempt prod
uce and merchandise brokers from
the brokers tax and to restore the
full levy on, billiard and pool tables
and bowling alleys were approved.
The treasury proposal to limit de
auctions on account of capital losses
to II IL per cent was restored to the
bill by demand of house conferees
Secretary Mellon has estimated it
would increase returns in revenue by
$25,000,000 annually.
Chairman SmOot, Of the senate
finance committee, estimated the
bill went S1O0,OO0,00O below the
treasury surplus available for tax
reduction. This did not take into
account the cost of the bonus bill
which it has been estimated will re-
quire an appropriation of $4,000
600 for the next fiscal year, or 9th
err pending measures calling for
special appropriations.
Renewed contests over various tax
reduction proposals are in prospect
in both chambers when the confer
cnce rel It is received but leaders
of both parties have indicated that
if the conference action is approved
by majority of the cOnferees no Sc
rious fights will be made on the
floor.
Agreement had been reached last
night on most Of the provisions in
the bill except the income tax seized
ule, thu substitute corporation tau
imposing a levy on undistributed
profits ant the proposal for full pub
Lefty of tax returns.
The house provision opening tax
returns to inspection by certain con
gressiOnal committees automatically
was retained upon elimination OF
the proposal for full publicity OF
the returns as approved by the sen
ate. However, an amendment was
accepted, requiring the internal rev
enue bureau to post in addition &c
| the names and addresses of all tax
payers, as now, the amount Of tau
paid.
An amendment offered by Senator
| Jones. Democrat. New Mexico, tC
open all hearings before the pro
posed board of tax appeals also was
aCcerted.
Agreement was reached to ex
| empt from the three per cent tan
| all automobile. trucks the chassis
| Of which sell for 1000 or less a
! the bodies of which sell for 5000 OIL
| less. The per cent tax on auto
! mobile tires parts and accessories
I WIS cut III NAN. / ne senate n0t
proposed to repeal entirely the tan
/ on parts and accessories.
Nah JOnS Sets Taxed
! The senate amendment imposing
a ten per cent tax on NAH ions
! sets was approved.
/ \ proposal by Senator Mckinney
/ Republican. Illinois. to cut news
/ parers' mailing rates to the scale
applying in 1919. approved by the
senate, was turned down, Likewise
! the senate proposal to increase from
to 10 per cent the tax on all coir
/ operated slot machines was rejected
1 The senate amendment PROPOSED
1 by Senator Simmons increasing from