Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-08
TAX CUT MEASURE
Continued from Page one)


today as the first legislative business
presented to the new Congress.
In presenting the report of the ways
and means committee which drafted
the measure during seven
weeks pre- congress session, Chair
man Green served notice that he
would ask the House to take it up
tomorrow, under the plan to send it
to the Senate before the end of the
second week of the session.
A saving of $19S,575.000 to income
tax payers on taxes payable next
year. is the principal relief proposed
by the bill, and leaders of both the
House and Senate have set March l
as the goal for enactment of the
measure into law SO that this benefit
may be taken advantage of in the
payment of first installments of the
income tax due March Is.
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
Representative Rainey of Illinois and
Hull of Tennessee. Democratic mem
bers of the committee.
The bill cuts the normal tax rates
first $4,000 of PAYABLE income. to
from two to Ia per cent. on the
per cent. on the next $4,000 and 4
to per cent. on the remainder of
the income. While cutting the max
imum surtax from 40 to 20 per cent.
the reductions on other brackets OF
the graduated surtax scale, which
started at one per cent, on $4,000,
are made only on those involving
incomes of $42 900 and over.
Referring TO the committees re-
peal of the provision for publicity OF
income tax returns, the report de-
clared the treasury department. had
informed the committee that mo
useful purpose has been served by
it.
Reduction of the inheritance tax
rates from a maximum of 40 per
cent. to 20 per cent. and increase in
the credit to be allowed in Federal
inheritance tax settlements of the
amount paid on state inheritance
levies from 25 per cent. to so per
cent. eventually will reduce by one
half the present yield from this levy
of s10o.ooo.ooO annually. the report
said.
Referring to the repeal Of most OF
the excise and occupational taxes,
including the so-called nuisance
levies. Chairman Green explained
these taxes are not equitable III
their application and produce but
little revenue"
The tax on cigars. which was re-
duced. was so high as to depress
the business and reduce the revenue
to the government" the report de-
clared. The tax on jewelry. also re-
pealed. was described as difficult to
collect and burdensome of opera
ton"
Repeal of the tax on automobile
trucks was voted because il was n
tax SOLELY upon business" the re-
port said and the levies on automo-
bile tires and parts, also repealed,
were declared taxes on misfortune.
Repeal of the passenger car tax
could not be considered, the report
said, "as 1t would make the total
reduction carried by the bill alto
gether too large" The rate was cut
from five to three per cent, with a
provision allowing refund to auto
mobile dealers of the amount of diff
ference between the old and new
taxes for the cars on hand 80 days
after the bill becomes law. the ef-
fective date of the new automobile
tax.
The tax on alcohol, which would
be cut % per cent a year hence and
an additional rs per cent. in two
years, was classified as levy while
productive and easy to collect, con-
stitutes burden upon the consum-
er to whom it is in most cases shift
ed by the manufacturer.
Mr.. Rainey specifically proposed
three amendments, one to emove
provision for the increased personal
exemptions and to repeal all auto
mobile taxes; another to retain the
present alcohol tax and instead of
the proposed cut to repeal the levies
on sales on produce exchanges; and
another to retain the present surtax
minimum rate and remove all levies
on automobiles, admissions and dues.
Mr.. Hull opposed also the propos-
al to give members Of the board of
tax appeals \life memberships and the
provision to exempt the spoken
drama from the admission levy, pro-
posing in removing admission taxes
to begin at the lower prices. He
expressed the view that the total
amount of tax reduction should have
been s350,0o0, 900.