The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-02-26
REVENUE BILL
BECOMES
THIS MORNING
President Coolidge Signs
Measure While Cameras
Record the Scene
TAX LOWEST SINCE WAR
Nearly All Miscellaneous Ex-
else and OccupatiOnal War
Levies Dropped
TAX LOWEST SINCE WAR

Washington. Feb 26.-[P) The
new tax reduction bill became Il law
when President Coolidge gave it his
formal approval at 1922 o'clock this
morning.
The measure, which provides for
reduction Of 100000 in the
amount Of taxes to be paid by the
American people this year, was sign
ed by the chief executive in his Of
flee as IA battery of still and motion
picture cameramen recorded the
scene.
Invited to witness the ceremony
were several who were prominent III
the drafting of the Legislation. This
included Secretary Mellon; Director
Tilson of Connecticut, Republican
floor leader Of the house; Chairman
Green of the house ways and means
committees; Representative Garner Of
Texas, ranking Democrat on the
ways and means committee; Char
man Smoot Of the senate finance
committee, and Senator Simmons Of
North Carolina, ranking Democrat
on the finance committee.
Reviewed BY Treasury
The bill received final compression
al sanction Wednesday and was
transmitted yesterday to the White
House from where it was sent to the
treasury for review before being
signed BY the president.
No Comment Made
In signing the bill President Cool
idgc made no comment, verbal or
written, as to its provisions or pro.
bable effect.
The signing was to have taken
place ut 10 O'clock but was delayed
by the late arrival Of Senator SIM
mons.
The presidents office was trans
formed into studio with two kleig
lights adding to the illumination. As
Mr.. Coolidge took up pen he said
to his invited guests:
"Come up close behind my chair;
short gentlemen in front, tall gentle
men behind
Two Pens Used
He used two pens to affix his
signature, one Of which he presented
to Representative Green and the 9TH
er to Senator Smoot.
For 10 minutes, photographers took
behind him from various angles, fin-
ally swarnling up to his desk for
close ups.
The clicking and grinding of cam
eras continued until the president
finally said.
That's enough" Then the office
was cleared and the president went
to an adjoining room for the semi
| weekly meeting with his cabinet.
As finally approved by congress,
the bill pares down income taxes to
their lowest levels since the world
war and wipes out virtually all the
miscellaneous excise and occupational
war levies.
OF the $3s7,oo0.O0O reduction in
I, the federal tax total, more than
/ 500, 900 will represent saving
to personal income tax payers. I'm
| der the new schedule a married man
with two children will have to make
$4,000 before he is subject to ihc0me
taxation.
Personal Exemptions Raised
Personal exemptions are increased
| from $1,000 to 81 500 for single per-
sons, and from $2,5OO to $500 for
married persons. The normal rates
are reduced from to II. per cent
on the first $4,000 of taxable income;
from to per cent on the next
$4,000, and from to 5 per cent on
the remainder. Surtax rates, now
ranging upward to 20 per.acent, are
scaled down SO that the new maxi.
mum is 20 per cent
These miscellaneous excise and
occupational taxes are repealed out
right:
| Automobile trucks; automobile
tires and parts; jewelry; cameras
and lenses: Photographic films and
plates; fire arms and ammunition,
except pistols; automatic slot ma
chimes; Nah jongg sets; works of
art; brokers; bowling alleys; pool
and billiard tables; shooting CALLER
les; riding academies; automobiles
for hire; tobacco manufacturers; !;
opium dispenser: yachts. except for
,eign built hereafter purchased; !;
stamp levies on deeds and various
other legal papers.
| Auto Tax Reduced
The tax on passenger automobiles
is cut from 5 to per cent; that on
admission tickets is amended to ex-
empt tickets costing IS cents, il
place Of the present 50 cents maxi
mum; varying reductions are made
in the tax on virtually all grades ol
cigars; and the tax on alcohol is
reduced from $2.20 to $1.65 pei
proof gallon.
The capital stock tax is repealed
! and the flat corporation income tar
is increased from present 1915 pei
: cent to l3 per cent on taxes paid this
year and 1917 per cent on taxes PAID
: hereafter.
The gift tax is repealed, and in:
hcritance taxes are reduced. The in.
heritance maximum rate becomes q
per cent in place Of 40 per cent, the
present Is per cent credit fol
amounts paid in state inheritancs
, taxes is increased to 80 per cent.
II Tax Placed On Cereal Beverages
The only, new tax in the bill is !
levy Of one tenth Of cent gallon
!. on cereal beverages.
Most Of the provisions 60 into ef,
, feet immediately. The income ta,
reductions will apply 70 the pay NEST,