Evening star., 1926-01-11
Reduced Rates and In
creased Exemption Provi-
sions Unanimously O. KID.
DEMOCRATS LOSE FIGHT
FOR SURTAX LEVY RAISE
1C-7 Vote Defeats Proposal of SIM
mons-Battle to Be Continued
by Minority.
BY the Associated Press.

BY the Associated l'rcss.
Reductions in income taxes as pro
vided in the House revenue bill were
approved today by the senate finance
committee.
The reduced normal income tax rate
and the increased personal exemption
we're unanimously approved. but the
proposal of Democrats to increase the
reduction on SurtaX rates over that
provided by the House measure was
defeated.
Senator Simmons of North Carolina.
ranking Democrat on the committee.
submitted the proposal of the Demo
cratic members to cut the surtaN rates
on income between ST. 900 and $780,
600. saying he would accept the maxi.
mum surtaX of 20 per cent, but on a
straight party vote of 10 to I, his
proposition was rejected and the
House schedule was then approved.
Senator Simmons then served no.
tice he would fight for the - per cent
maximum surtaX rate.
The committee voted to restore to
the bill the provision allowing eXemp-
tion Of income received as dividends
or interest from building and loan as
sociations. up 10 $500. II previously
had eliminated this item.
Corporation Rate Stands.
The committee agreed to make no
change in the corporation tax of l.
per cent, but reserved the right to in
crease 1t TO 1872 per cent IL the capital
stock tax is repealed. In their pro
gram for $500, ,0U0. 900 tax reduction,
the Democratic members proposed re-
peal of the capital stock tax without
any change in the corporation levy.
Senator Jones, Democrat, of New Mex.
leo reserved the right to propose a
graduated corporation tax.
The committee accepted provisions
OF the present law limiting capital
gains and losses to l212 per cent.
Action on the inheritance tax,
which Chairman Smoot predicted the
committee would repeal. was post
poned pending receipt of information
requested from the Treasury Depart
ment. The committee also DELAYED Il
decision on the question of publicity
on income tax rteurns.
Coolidge Reassured.
In response to hurried inquiries
made today by President Coolidge. as.
surances were given to him by Senate
and party leaders that the $500 900 900
reductions in taxes demanded by Sena-
tor Simmons will not have any seri-
Gus results so far as the tax bill as it
was passed by the House is concerned.
The President has been advised that
while the legislation will not have as
smooth sailing in the Senate as it did
in the House, it's total will be prac1i-
cally the same as the S325 900 900 pro
vided in the House bill
1t is known that tax reduction is
looked upon by the President as the
country at this time. and he is eager
to see this legislation disposed of as
quickly possible and at the same
time hopes the reduction will not be
increased over the amount provided
for in the House bill.
Lost Little Time.
When he learned of Senator Sim
mons opening gun in opposition to the
so-Called bipartisan program he lost
little time in getting opinions as To the
possible effect the Simmons demand
will have on the general result
Among those whose opinion the
President sought was Senator Len
root of Wisconsin. one of the party's
leaders in the Senate. who is han
ding the administration World
Court program. The Wisconsin Sen
ator is known to have told the Presi-
dent that while Senator Simmons
may succeed in breaking up TO some
extent the harmony that has pre-
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