Evening star., 1924-03-01
REVENUE MEASURE
REACHES SENATE
Long Debate Seen-BilI as
Approved in House PIeases
Both Parties.

The revenue measure arrived in the
Senate today to start the second lap
of it's legislative journey.
The House. by a vote Of 40s to 8,
approved the bill yesterday after
sending it through a lastminute
crossfre, in which the democratic
income tax schedule was knocked out
and compromise. offered by Repre-
sentative Longworth, republican
leader, and supported by every men,
ber of the party present, was sub
stituted.
Members of the Senate finance COM
.mittee have indicated a desire to
hasten their consideration 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 that exhaustive study
the Senate committee expects to re-
quire much less time.
Two weeks We're devoted by the
House to consideration of the bill
after 1t 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 debate.
Compromise Wins, 40 to 1873.
The income tax rates voted into
the measure yesterday provide for
reduction of the normal tax to per
cent on incomes under $4,000; per
cent on incomes between $4,000 and
$4,000, and per cent on incomes
over $4,000. The surtax rates of the
present law were reduced 25 per cent
all along the line with the present
brackets retained. making the
of incomes in excess of 100000. The
minimum is placed at ! II per cent on
incomes between $4,000 and $4,000,
the first bracket of the present law
incomes between $4,000 and $4,000
being eliminated. No change in the
personal exemptions is made.
The vote placing the compromise
plan into the bill was 216 to 1919. re-
publican insurgents who previously
had voted to substitute the demo-
cratic rates for the Mellon schedule
solidly supporting the proposal. Rep
resentative Browne, New Jersey. was
the only democrat to vote for the
plan, while Representatives Wefald.
anu hSdlty
pendent, both of Minnesota, voted
for the democratic rates. Represent
ative Berger. socialis. Wisconsin,
was paired against the compromise.
Mellon Rates Rejected.
All major provisions Of the measure
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. 261 to 153. Repre-
sentative Browne also was the only
democrat voting for these rates.
The provision granting a 25 per
cent cut on all personal income taxes
payable this year withstood two de-
termined assaults and remained in
the bill. Representative Crisp, demo-
crat, Georgia, twice proposed to
eliminate the section. arguing that
reduction should be used for the pay
ment of a soldiers bonus. His pro-
posaI lost on a record vote, 348 to 6S.
Other important provisions of the
measure as finally approved were the
25 per cent reduction in taxes on
earned incomes, all incomes of $4,000
and less being defined as earned for
taxation purposes; the repeal or re-
duction of many of the miscellaneous
or exGise taxes; increase in the estate
taxes 'of about 3S per cent; institution
of gift tax with the same rates as
carried in the estate tax, and creation
of board of tax appeals.
Both Sides Elated.
The eight who voted against the
measure were Representatives Bacha-
rach, 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 satis-
faction today, declaring the measure
now contained every important fea-
ture he had advocated. Republican
organization leaders also were enthu-
siastic over the adoption of their COM
promise income rate schedule, which
they insisted would prevent deficit
in the Treasury, and the democrats
asserted they had gained the moral
victory" in that the compromise
schedule was so much nearer their
own, with a A per cent maximum
surtax rate, than the. Mellon pro-
gram with it's 26 per cent surtax
minimum, s--.----...-