New Britain herald., 1924-05-22
CHIEF FEATURES OF
 TAXES SUGGESTED
Cut in Income LeVieS Due This
 Year Is Advised

Washington, May 22--The new ta, bill, as agreed 10 by the senate and i house conferees, contains the follow l ing chief features:
 The Simmons surtaX rates and nor nal income tax rates. The maxi mum surtaX rate is 40 per cent. The normal rates are per cent on in- comes up to si,Vo0; 1 per cent on in- comes between S4o00 and sS,000. and 6 per cent beyond that. The normal rates are 50 per cent below existing rates on incomes Up 10 sS,0o0.
 The corporation income taxes are those provided under existing law, amounting 10 12la per cent. The Jones graduated tax on corporations was abandoned.
 The drastic publicity provisions of the senate bill were dropped and the house provisions adopted with slight change. Under these. lists of tax payers and amounts paid will be public. but tax returns will. not be open to general public inspection.
 Reductions This Year.
 The bill provides for 25 per cent reduction on income taxes due this year. It provides for 25 per cent re- duction in taxes on earned incomes, as compared with unearned This cut is restricted 10 incomes not over st0.000.
 As agreed 10 in conference, an estate tax is provided as in the house bill making an increase Of 10 per cent in existing estate tax rates, with gift taxes to correspond.
 The bill contains important admin istration features calculated to pre- vent evasions Of the law which are now costing the government heavily.
 Rig Deficit.
 Senator Smoot, head of the senate conferees, announced the bill would reduce taxes to the extent of s472,- GEO, ,000 in the calendar year, 1925. Ii will result in deficit Of Sl00,000,- 900, not including the bonus, How ever, Senator Shoot hopes that it will SO add to business activity as 10 bring in more revenue than the experts cal culate, and that no deficit will result.
 Automobile Taxes.
 Under the final agreement there is \ ! per cent tax on automobile trucks, except that those with chassis costing 1, ,0O0 or less and bodies s200 or less gre exempted. Passenger cars arc ! taxed 5 per cent and parts and tires ia per cent instead Of per cent, as | at present According to this scale, l the automobile taxes would raise ! si52, 2,oo0,009. instead of si5S,000,000, 1 IS they now do.
 4 tax Of ] per cent on sculpture, and other art works, sold by dealers, was restored 10 inc bill, al- though the senate supported Senator Walsh of Massachusetts in killing it.
 The conferces held that a 10 per cent tax on Nah Jongg sets was equit- able.
 They also made the tax on slot ma chimes per cent, as compared with | | split scale of and 10 per cent in ' he house and 10 per cent on all ma ,hines fin the senate.
 Jewelry costing less than s3O will | lot be subject to the per cent tax. The present law taxes, all iewelry, the icnate made the exception limit s25, | .ouse ti0 and the conference split the Inference. Spectacles are relieved rom all tax, no matter how expen- i've. Watches, worth less than s6O, re not taxed.
 Amendments placed in the bill by cnators Moses and Mckinley respec- ively, allowed deductions on account f reforestation and reducing the pos- al rates on newspapers to the 1919 chedule, were cut out Of the bill. The conferees accepted a senate mendment excepting merchandise nd produce brokers from a $50 tax svied upon other brokers.
 The present tax Of s10 each on owing alleys and billiard tables vas ttained, the senate having insterted his figure in place of s5 approved by he house.