The Monmouth inquirer., 1924-03-06
Gift TAX PLACED
IN REVENUE BILL
Imposes Scale of Rates Up to
40 Per Cent on Amounts
Above $4,000.
RAISE LEVY ON CIGARETTES
Toll of so Per Cent on Excessive House
Rents Defeated-House Approves
Repeal of Tax on Movie Admis-
sion of SO Cents and Less.

Washington an effort to pre-
vent evasion of estate taxes and high
surtaxes and also to provide additional
revenue, the House approved tax on
gifts and increased the tax on cigar
cites. The House broke up in a row
Just as it seemed about to adopt
amendments reducing automobile
taxes.
The gift tax amendment, as offered
by Representative Green, of Iowa.
chairman of the Ways and Means
Committee, provides rates ranging
from / to 20 per cent, the same scale
OF rates as was fixed for estate taxes.
The rate of per cent applies to
amounts up to $4,000, after the hrst
deducting an exemption of $50,OOO,
while the 40 per cent rates applies on
the amount in excess of $10,000,00O. In
order that it may not apply to small
charities and bonuses given by bust
ness concerns, all gifts OF not more
than $500 to an individual also are ex-
empt.
The gift tax, which is designed to
prevent the splitting up of large es-
tates, which would both make possible
the evasion of high surtaxes and OF
high estate taxes, was approved by
vote of 1911 to SIS. Representative Gar
ner, of Texas, ranking Democratic
member of the Ways and Means Com
mittee. who supported it, estimated
that it would yield $25,000,00O annual
ly in additional revenue. This was dis
puted by Representative Mills, of New
York, a Republican member of the
Ways and Means Committee, who de-
scribed the tax as "a mere gesture"
The tax Old cigarettes was increased
from SO to 81 per 1000 on the motion
Of Representative Garner, who said
that this increase would add about
$50 900 in revenue. The amend
ment was adopted by vote of lit to
S. The amendment was opposed by
some members, who declared that it
would injure the cigarette industry.
Efforts to amend the provisions of
the bill relating to admission taxes
proved unsuccessful. AS reported
from committee the bill repeats taxes
on admissions of so cents and less, but
leaves the tax of one cent per each
10 cents of admission on those above
so cents. The House approved the
provisions in this form after rejecting
amendments reducing by one-half the
tax on admissions above so cents, ex-
empting Il admissions up to 81 and
various other changes. The argument
advanced against any changes was too
great loss in revenue would result.
While no changes in rates were
made in admission taxes, amendments
were adopted extending exemptions to
benefits for policemen and firemen and
their heirs, national guard and reserve
organizations and college fraternal or
CARNATIONS.
Amendments repeating the tax on
automobile trucks when the chassis is
sold for not in excess Of $1,000 and
reducing the tax on spare parts, tires
and tubes from to II per cent were
introduced by Representative Nc
Laughlin, of Michigan, Republican
member of the Ways and Means Com
r1ittee. Mr.. Mclaughlin explained
than many of the leading Republicans
and Democrats of the House had
agreed to these amendments which,
he said. would mean loss. in revenue
of about 1923 100000.
The House rejected a substitute Of
fered by Representative Denison, of IL
linois, Republican, under which the tax
on trucks and on automobile parts
would be repealed and graduated
tax would apply to automobiles valued
at more than $1,000. Approval of the
Mclaughlin amendments appeared
certain, but a row developed over un-
successful efforts by Representative
Clancy, of Michigan, Democrat, to OBJ
tain recognition in order to speak in
support of the Mclaughlin amend
ment. Mr.. Clancy represents the dis
trict in which most of the Detroit au-
tomobile establishments are located