New Britain herald., 1926-01-28
SPEEDY ACTION ON
 TAX ISN'T LIKELY Opponents Announce They Will
 Resist Attempts at Haste SHOOT EXPLAINS MEASURE
Not Much Chance of Vote By Fcbru- ary 10, Necessary if Changes Are to Become Effective on March ia. Figures Are Given Our.

Washington, Jan. 2S P)-The senate opened consideration of the tax bill today with opponents of the measure declaring they would fight nasty action, even if tax reduction were delayed beyond March 15 when first income tax payments are due.
 When Chairman Shoot of the fi- nance committee asked for final ac- ton by Feb. 10, Senator Norris, re- publican, of Nebraska. expressed doubt that q vote could be taken by that time, he added he did not see how 1t would be possible to get the bill through in time for reduc- tions on the March 15 payments and suggested that these payments be postponed until April or provision made for refunds.
 Both of these proposals were de- clared impracticable by Senator Shoot. He said persons would be relieved of all income taxes by the bill and that the government needed revenue on March Is 10 meet G6OO,- 0OO,0OO in short term obligations.
 Several members from both par ties took the floor to promise sup port for Q program of early action.
 Smoot Explains Measure
 Opening the senate debate on the tax reduction bill, Chairman Smoot said ample time should be given for debate but warned that after pass age of the measure by the senate the bill must be sent to conference for adjustment of differences be- tween the house and senate with q further delay while net income blanks must be printed.
 Touches Principal Points
 The committee chairman discuss ed principally the tax reducing points of the bill, particularly those provisions by. which committee uu- der q compromise agreement of re- publicans and democrats increased the amount of total reduction Of sS30,000 provided by the house bill to s352,0O0,000.
 Reductions in the income taxes provided by the measure would amount to s219,OO0,0OO this year. Mir Shoot said. which he divided as follows: Incomes of less than S10,- 00O-s52,2OO0o0; incomes of s1o.- GOO to s1O0, 0,O0O-s46, GS0, ,O00: in comes in excess of s100, 00,00O-$1c0,- 0OO,00O.
 Replies To Criticisms
 Anticipating attacks on grounds that the new rates gave too much reduction on incomes over $10O,0OO by a slash In the maximum surtax rate from 40 to 20 per cent. and not enough on incomes between s1O.OOO and $100,000, Senator Shoot de- clared the principle of sound econ. omics" was involved which looked further than to the interest of any individual or group"
 "The largest single source of in- come for those having incomes over s100,0O0 is from dividends" he said, we have made no cut in the corporation tax. It is only proper that the tax on dividends should be reduced through the surtax reduc- tion. To tax corporate earnings first at the 1212 per cent rate, whether distributed or not. and again at the 20 per cent, in case of q distribution to persons with an in- come in excess of S10O, 900, or a total of S213 per cent. would seem to be going quite as far as justice and fairness can permit"
 Personal Income Taxes.
 He explained that under the new tax rates revenue would be collected from personal incomes as follows:
 Incomes Of less than $1O0O0-- s67 100000.
 Incomes Of sIo,o0O to s1OO,Ooo- s32,0O0,OOO,
 Incomes in excess os s1oo.OOo- s3OO. 100000.
 Those who have high incomes each year." he continued, must contribute any tax saving toward in vestment in industrial enterprises,
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