Evening star., 1925-12-07
1925, 736, 900 TAX CUT BILL AIDS
PRACTICALLY EVERY TAXPAYER
And Inheritance Rates Reduced--''Nuisance''
Jewery and Auto Truck Provisions Repealed.
By the Associated Press

pS tue Associated Press.
The new revenue bill proposing a
slash of $325, ,736, 900 in taxes during
the next calendar year und providing
relfer for virtually every Federal tax
payer was reported to. the House to-
DAY as the first Legislative business
presented 10 the new Congress.
In presenting the report Of the
ways and means committee. which
drafted the measure during "a seven
week pre-CongFeSS session, Chairman
Green served notice that he would
ask the House To take il UP tonor-
row. under the plan to send it to the
Senate before the end of the second
week of the session.
saving of S193, SIS. 900 to income
taxpayers on taxes payable next year
Is the principal relief proposed by the
bill. and leaders of both the HOuS'
ana Senate have set March | as tn
goal for enactment of the meaSur.
into law, so that this benefit may ho
taken advantage of in the paym"n
of first instalments of the income Ia,
due March 10.
Has additional Views
Although unanimously ordered re
ported to the House by the Ways and
Means Committee, the committee re
port on the bill contained separate
statements of additional views" by
Representatives Rainey of Illinois and
Hull of Tennessee, Democratic mem
bers Of the committee.
Chairman Green's report for the
committee explained in detail the re
visions made in the tax rates, as we'll
as the administrative provisions of the
law, and set forth the principles
which guided the committee.
1t was manifestly impossible" the
report said. TO make all the reduc-
tons asked; but the committee, hav-
ing first determined the total amount
of tax reduction in revenues which
could properly be made, proceeded TO
apportion the benefits of such reduC-
ton not only among the tax payers
whose need of relief seemed great
est, and where II appeared il could
be made with the least disadvantage
to the Government. but as far as
possible. so to distribute them as to
bring the maximum good to all Of our
people
on none of the votes taken in the
committee on provisions of the bill did
it divide on partisan lines. Mr.. Green
said, and in this respect he declared
the bill sets an excellent example
for future financial legislation"
Surtax Cut Opposed.
Both Mr.. Rainey and Mr. Hull
praised the general provisions of the
measure. hut both took exception To
the provisions increasing the personal
exemptions and cutting the maximum
surtax rate from 40 To % per cent.
They proposed instead that the pres
ent exemptions be retained, lesser cuts
be made on the higher surtaXes and
all the war excise and special taxes
he repealed. Mr.. Rainey proposed 2.
IN lXimum OF 50 per cent and MIR. Hull
one of % per cent.
The report pointed out that The per
Sonal exemption had been Increased
from 81 900 to $500 for single per
sons and from 81 800 To S3.5 for
married persons. with $500 in addi-
ton TO he deducted for each de
pendent. Similarly, the amount Of in
come on which the credit of % per
cent for earned income" could he
applied had been increased from
SO 900 10 10000.
The bill cuts the normal tax rates
from TO III per cent on the first
81 900 of taxable income, from 1 to 3
per cent on the next $4,000 and from
6 TO per cent on the remainder of
income. While cutting the maximum
surtax from 40 TO 20 per cent, the re.
ductionS on other brackets of the
graduated surtaX scale. which starts
at l per cent on $4,000. are made
only on those involving incomes OF
$42 900 and over
AN examination will show" Mr.
Green's report said. that all classes
OF income taxpa<ers have received a
substantial reelection; that the grada-
tions in rates are as regular as is
the whole, is well balanced. 1t VIII be
found that the percentage OF the in
come taken by the tax advances
gradually and with reasonable uni