New Britain herald., 1925-11-11
sos MILLION OFF
TAXPAYERS LEVY
Proposed Tax Will Save the
People This Much

Washington, Nov. II Pl-Reyised
tax schedules that would mean q
saving OF at least s30s,00o, 900 an.
nually TO federal taxpayers will be
incorporated IN the tax reduction
bin 10 be presented TO the house
by It's ways and means committee on
the opening day OF congress.
The committee yesterday con-
cluded its work OF slashing the ,ari.
Gus tax rates after a week OF dis
cussion preceded by two weeks Of
/ public hearings. 1t worked out the
new rates It will propose on non
partisan basis, an almost unprc.
/ Cedented peace time action, and vir-
tually unanimous committee ap.
proyal of the measure is expected,
This would assure almost united
support by the house, party leaders
declare.
Most Of the excise and occupa-
tonal levies would be wiped from
the books by the committees ac-
ton yesterday in voting a cut OF
about sl14o60,00o In these taxes.
Reductions In the income rates
through cuts In the normal and sur
tax schedules, Increased personal ex-
emptions, and increased allowance
for the earned income" credit ac-
count for $l93,574,546 of the total
clash in federal levies TO be pro-
posed.
Another 100000 Will be saved
/ taxpayers by repeal OF the gift tax.
Chairman Green believes the pro-
posed reductions In the estate OF in
heritance tax will have no effect on
government revenue next year. The
cut in the maximum rate from 40 10
| 20 per cent and the 80 per cent
credit 10 be allowed for payments on
state inheritance taxes, however. Is
| expected to result eventually IN loss
Of o5,000,000 annually on this tax.
/ Approving the new surtax sched-
ule with a maximum OF 20 per cent
I instead Of 40 per cent TO apply on
incomes in excess Of 100000, the
committe decided to make rcduc-
tons In these rates effective only on
, brackets between $4,000 and $780,
, 600.
/ A proposal TO allow the s400 de-
I duction for children between Is and
/ Fl years Of age who are IN school
was rescinded by the committee
upon complaint OF the treasury that
/ it would be impossible 10 admins
ter, The age limit now is IS years
/ in all cases.
The committee gave further study
today TO administrative provisions
Of the law, with a tentative agree
/ mont reached for retaining the
membership Of the board Of tax
appeals at &c members. It would
give the members life terms, sub
joct to good behavior, and increase
their salaries from $500 to $4,000
annually.
New Surtax Rates
These are the new surtax rates u
approved by the committee.
$3.50 upon net incomes of S44,-
900; and ID per cent upon the
amount of income between s44.QnH
and $4,000.
$3.50 upon net incomes Of 800
doQsand l6 per cent on excess up to
/ sG0,o0o.
$4,000 upon net incomes of $50
600 AMI II per cent on excess up
TO $4,000.
$3.50 upon net incomes Of SO
400 and IS per cent on excess up to
$4,000.
$3.50 upon net incomes Of $50
( 600 and - per cent on cXccss up to
;lo0.100.
$1,000 upon not incomes Of
100000 and 90 per cent on excess
over that amount.
The amount Of revenue loss esti-
mated to result annually from each
change approved by the committc"
in the federal faxes vas shown in
another table. as follows;
SNrtaXes- 2@S,G9l,720.
! Normal, income taHos-t45.54G,-
'lSG,
Increased credit for earned ~.
come-$7. QUO ou.
Increased personal exemptions.