San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1926-01-17
TAX
GUT BILL IS
ADOPTED
s365,O0O,OOO Sla e d
From Paym ent on
American Incomes.

WASHINGTON. ID. T., Jan. IT.
A harmony tax reduction bill provid-
ing for approximately 1866, 100000 in
tax relief for the American people
was adopted tonight by the Senate
finance committee by unanimous re-
port.
The concord between Republicans
and Democrats in agreeing upon
provisions Of the measure was I'M
precedented in the Senate's history,
but followed closely n similar mon
partisan" action by the House.
Although a unanimous report &C.
companied the bill. there were some
storm clouds in reservation made by
individual senators to oppose certain
provisions.
UNITED SUPPORT.
The two major parties, as parties,
however, were united in support of
the bill.
The Senate bill, if enacted into
law, will slash about $35,000,000
more from existing taxes than the
reductions proposed in the House
bill. Its outstanding provisions as
differing from those in the House bill
were the repeal of all inheritance
and estate taxes, effective whenever
the new bill becomes a law and a re-
vision of surtaXes on incomes between
$4,000 and $4,000.
The new surtax rates represent
Gratis were wont TO joining the Re-
publicans in unanimous report.
The proposed new surtaxes were not
as low as the Democrats at first de-
manded but will give the beneficiaries
millions of dollars more relief than
the rates adopted by the House.
The committees reductions over the
House rates will provide the follow
ing additional saving for the people
SO, 100000 TO S27,00O,0O0 on sur
taxes: S20,000.000 on estates: So
100000 on admissions and $780,
900 on excise taxes.
PROVISIONS OF BILL.
As finally reported the tax bin con-
tains normal income tax rates of i IL
per cent on the first $1,000: 3 per
cent on incomes between $1,000 and
$1,000 and 3 per cent on incomes above |
$4,000.
On surfaces, the rates begin at g |
per cent at $4,000 and runs 10 a
maximum surtax of 20 per cent. on
incomes over 100000. The changes
make the new surfaces Z per cent on
incomes between $4,000 and S2s.- |
600 with a progressive tax increasing !
/ per cent on each succeeding $1,000 |
Of income up to 100000.
This places, for instance, a sur
tax Of 10 per cent on incomes be- !
tween $4,000 and $4,000 and a sur
tax Of 16 per cent On incomes be- |
tween 100000 and S64.O00.
From $4,000 to 100000 the House !
surtaxes remained in the bill. In !
repeating the estate and inheritance |
taxes the committee made the repeal |
effective only On the estates Of men
who died after a passage Of the bill. |
1921 rates were made effective on
all outstanding estates, upon which |
taxes must be paid in the coming |
year. On admission taxes, the Senate |
committee increased the exemption |
from J0-cent tickets 10 1J-cent tickets. !
which would cause a loss Of $1,000 |
600 annually in revenues.
The committee restored the 10 per
cent amusement tax to legitimate
dramas which had been removed By
the House and which totals sjO00.-
900 a year. A gain Of SGi000,00O
revenue over House rates were cf-
fccted when the committee restored
the per cent tax on motor trucks
which tn House had repealed.
Although the committee reported
unanimously on the bill rs a whole,
this change in the House provision
will be fought on the Senate floor.