Evening star., 1926-01-30
SENATE TAKESUP
ITEMS IN DISPUTE
N NEW TAX BILL
Surtax Rates, Publicity Re-
peal and inheritance Provi-
sions Due for Debate.
INCOME RATE REDUCTION
BRINGS NO DISPUTES
Large Number of Miscellaneous
Levies Ended, But Subject -,
to Amendment.
BY the Associated Press.

BY the Associated Press.
Having disposed OF. the non.con-
troversia, items of the tax reduction
hill. the Senate today tackled the pro-
visions on which contests have been
brewing
Sections repeating most of the mis-
cellaneorlS taxes which had been
provided by tho House and approved
by the finance committee were ac
repted without debate and. although
still subject 10 amendments. no con.
tests against these are in prospect.
Pressing, for action on the contro-
rerslal items, Chairman Smoot of the
finance committee. in charge OF the
bill, was confronted today with de-
bate from the opposition.
Vital Terms of Bill.
Provisions which must now be de-
cided and which constitute some of
the vital terms of the bill include
reduction of the surtaX rates from
maximum of 40 per cent to 20 per
cent, repeal of the inheritance tax
and publicity of tax re<ul,ls and an
increase in the corporation tax from
12l2 per cent to 1872 per cent to off
set the repeal of the capital stock
tax, approved yesterday.
Senator King of Utah. one of the
Democratic members of the finance
committee. also has served notice he
will propose further reductions in
the miscellaneous taxes by repeal of
all automobile taxes and repeal of the
ieVIes on admissions and dues.
Provisions Now Settled.
Provisions accepted yesterday and
over which no further controversy Is
expected by leaders include:
reductions in the normal income
TAX rates from > to liz per cent on the
first $4,000 of taxable income: 4 to 3
per cent on the next $4,000. and from
to per cent on the remainder.
Increase from $4,000 to $4,000 in
the amount on which the 25 per cent
reduction for earned income" may be
applied.
Increase in the personal exemptions
from $1,000 To $500 for single persons
and from $500 to $500 for married
persons.
Repeal of the taxes ON automobile
tires and parts. jewelry. cameras, pho.
toEfaphic films and plates. firearms
and ammunition. smokers articles, au-
tomato slot machines, works Of art.
brokers, bowling alleys and billiard
tables, shooting galleries and riding
academies. automobiles for hire, tobac-
co manufacturers, deeds and convey
ances.
Further Cuts on Cigars.
In accepting the House reductions
on cigar taxes the Senate also ap-
proved amendments ordering further
cuts in the levies on cigars retailing
from cents to lo cents. as proposed
by the finance committee.
Committee amendments repeating
the stamp taxes on Customhouse en-
tries and Withdrawals and on steam
ship passage tickets also were ac-
cepted.
While the increase in personal eX-
emptfons was accepted without debate.
there have been indications that some
Senators viii seek further increases
20 allow exemptions of So, 900 FOR mar
ried persons.
There was spirit ed debate Yesterday
afternoon over the practice of the
Treasury Department in going back
five and six years to make new assess
ments against persons who have paid
their taxes. A number of Democrats,
led by Senators Robinson of Arkansas
and Mckellar of Tennessee. denounced
this procedure as being a great annoy
auce to honest taxpayers. and urged
that the department be prevented from
going back beyond two years in reas-
sessins taxpayers.
Senator Reed, Republican. of Penn
sylvania said he agreed with the views
Of the Democratic Senate ors regarding
the annoyance involved in this pro-
cedure. but pointed out that the In
ternal Revenue Bureau has been sew
eral years behind in it's work He said
the bureau is making progress toward
catching up, but that Ii would mean
a heavy loss in revenue if a time limit
of two years should be placed on re-
assessments before the bureau catches
UP in it's work
This question of limiting the time
for reassessments went over for fur
ther consideration later.