San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-01
RE VENUE BILL
STARTS SECOND
LAP IN SENATE
Compromise Elates COP.
While Democrats Claim
"Moral Victory"
SURTAX RATES CUT
Insurgents Line Up With
Republicans and Put
Measure Over.

Washington, ID. c.. March 1.-The
revenue measure arrived in the SEN
ate today to start the second lap
of its legislative journey.
The House by vote of 40S to 8.
approved the bill yesterday, after send
ing it through last minute cross
fire in which the Democratic income
tax schedule was knocked out and
compromise, offered by Representative
Longworth, Republican leader. and
supported by every member of the
party present. was substituted.
Members of the Senate finance CON-
mittee have indicated a desile to has
ten their considera on of the measure
but have determined upon no definite
program. The house ways and means
committee spent almost two months in
framing the measure. but in view Of the
exhaustive study, the Senate committee
expects TO require much less time.
Two weeks were devoted by the
House TO considerati cn of the bill after
it reached the floor. A longer period
of floor discussion, however. is looked
for in the Senate, since the rules of
that chamber do not permit restriction
of debates. t M Afsf-
The income tax rates voted into
the measure yesterday provide for re-
duction of the Dorp1al tax TO per
cept on incomes under $500; 5 per
cent on incomes between $1,000 and
$4,000, and q per cent on incomes over
$4,000. ~
Surtaxes Are Cut 1850.
The surtax rates of the present law
were reduced % per cent all along
the line with the present brackets re-
tanned, making the maximum 81 IL
| per cent on the amount of incomes
in excess of 100000. The minimum
is placed at | IL per cent on incomes
between $4,000 and $4,000, the first
bracket of the present law incomes
between $4,000 and $4,000 now under
a surtax at one per cent E. being
eliminated. No change in the personal
exemptions is made.
The vote placing the compromise
plan into the bill was ZIG to 100, Re
publican insurgents who previously
had voted 10 substitute the Democratic
rates for the Mellon schedule. solidly
supporting the proposal. Representa-
tive Browne, New jersey, was the only
Democrat TO vote for the plan. while
Representative Wefald. Farmer-Labor-
lite and Kyale. Independent. both of
Minnesota. voted for the Democratic
Rrates. Representative Berger. So
cialist. Wisconsin, was paired against
the compromise.
,,o,,,a,a,e 81 tto
were subjected TO attacks in the last
rush, roll calls being forced on sew
eral sections. The Mellon rates. pro-
posed again by Representative Haw-
ley, Oregon. Republican member of
the ways and means committee, went
down to defeat, 26l to 153. Represen-
tative Browne also was the only Dem
ocrat voting for these rates.
The provision granting a % per
cent cut on all personal income taxes
payable this year withstood two deter
mined assaults and remained in the
bill. Representative Crisp. Democrat
Georgia. twice proposed to eliminate
the section arguing that the S223.O00.-
900 involved in such reduction should
be used for the payment of soldiers
bonus. His proposal lost on a record
vote, o1S 10 Us.
Earned Income Tax Slashed.
Other important provisions of the
measure as finally approved were the
% per cent reduction in taxes on earn
ed incomes, all incomes of $4,000 and
less being defined as earned for tax
alton purposes; the repeal or reduction
of many of the miscellaneous or ex-
else taxes; increase in the estate taxes
of about 50 per cent: institution of
Il gift tax with the same rates as
carried in the,estate tax; and creation
Of board of tax appeals.
The eight who voted against the
measure were Representatives Bach
arach. New Jersey: Fem. Merritt. and
Tilson. Connecticut; Mills and Vain
wright. New York, and McFadden.
PENNSYLVANIA, Republicans, and How
ard. Democrat, Nebraska.
Chairman Green, of the ways and
means committee, expressed his sat
isfaction today, declaring the measure
now contained every important feature
he had advocated. Republican organ
ization leaders are also enthusiastic
over the adoption of their compromise
income rate schedule. which they in
Sist will prevent a deficit in the treas
ury, and the Democrats assert they
have gained moral victory" in that
the compromise schedule was so much
nearer their own, with A per cent
maximum surtax rate. than the Mel
lon program with its % per cent sur
tax maximum.