New Britain herald., 1926-02-20
LEVIES RESTORED
 IN TAX MEASURE
Compromise Includes lnherit- ance, Auto and Admission Taxes
REDUCTION IS SSSl,00OO,OOO
After This Year Reduction VIII Be s343, ,000, 900 - Compromise Said to Bc Acceptable and surely Ef- fectiye By March I5.

fecti,e By MaTch 15.
 Washington, Feb, 20 LPs--Thc rev enue bill, whipped into shape after four months Of constant work, pro yiding for tax reduction of 3Al,OOO,- GOO this year, S342,0o0,o 900 thereaft- CT, and for many changes in the ad- ministrative features of the present Income tax law, Is ready for it's final trip through congress.
 Representing a compromise on my provisions between the senate and house, the bill will be taken before each branch for ratification the first of next week and If given approval will be sent 10 the White House for the signature of Presi- dent Coolidge.
 The measure will become law be- fore the end of next week under thls program, Its managers btile'e' with many of It's provisions TOT widespread reductions in taxes be- coming effective immediately.
 The lowered income taT will be effective on incomes Of last year on which taxes are payable by March 15.
 The Disputed Points
 The conference agreement on the points In dispute follows:
 Restoration of the modified h. horitance tax rates voted by the house, including the provision aI- lowing so per cent credit on ac- count of state inheritance tax pay ments. Retroactive cut in the inherl' tance tax whereby the increased rates voted in 1924 would be ellm' mated in favor of the lower rate' in the 1921 act.
 Allowance of the increased reduc lions in the surtaX rates applylns on incomes between S26,0oo ant Stoo.0oQ as voted by the senate This involves saving Of S2S,oo' annually to taxpayers in this class Repeal of the capital stock tax a voted by the senate.
 Increase of the corporation taA now 12 1-2 per cent to Is per cen for this year and 1S i-2 per cen thereafter.
 Restoration of the 10 per cent ia on admissions and dues, but "lt .o increase in the exemptions to ap nlv on tickets costing 75 cents an less, rather than 50 cents and les' as voted by the house. Restoration of the automobll passenger car tax. with the rate re auction from to per cent.
 Retroactive reduction in the gl' tax to make the lower rates Ill el feet on inheritances in the 1921 la effective. This tax, as far as tn future is concerned, is repealed D the bill.
 Increase from s5oo,oOo to s1oo UOo the exemption from the inherl ance tax.
 The inheritance tax constitute the main fighting point in the wee of conferences necessary to prn 21CuT IDS dEItSlll|llI fIIC '4'S promise affecting it left two ell ments dissatisfied. Represcntatl' Green, republican, Iowa. who hea' ed the house conferees, IS unde stood to be opposed to the retroa tive reduction agreed upon Whl members of the senate who Not' for repeal of the levy, includll leaders of both parties, object' particularly 10 the provision alloy ing the so per cent credit for sta inheritance tax payments whl' they held, amounted to coercion states desiring not to impose such levy.
 While Secretary Mellon indicat some time ago that total reducti of SS52, ,0OO,000 was the limit "hl ths condition of the treasury "ou permit, Senator Shoot republica Utah, head of the senate confere' predicted that increased reven receipts this year as q result o1 II proved business conditions VOL permit a reduction of 1881, ,0OO.Ool
 The total amount of rcductl vii be lower next year, it was plained, because the higher corpt alton tax will then be in effect. L der the agreement, corporation ta' paid up to July will be at the r' of IA per cent for the half v and between July l and Decent 30 at the rate of S-4 per cent
 Increased reductions voted by senate on the cigar taxes were cepted but it's amendment to b; discovery depletion allowances oil and gas wells on 80 per cent tn gross income was changed make the rate 2 1-2 per cent.
 The senate amendment limit the treasury to two years in wh to make assessments on tax retu was changed to three years. F' years is now allowed.
 Many of the vital provisions Of bill had been agreed upon by b the senate and house and were in conference. These included all the income tax schedules with
 exception of the surtaX rates apr ing on incomes between S26,o0O ; Sl00, 900 and most of the miscell eous excise and occupational ta' which will be repealed.