Evening star., 1926-02-14
FIGHT FOR TAX BILL
APPROVED IN HOUSE
DUE IN NCONFERENCE:
Members of Lower Chamber
. Claim Senate Cuts Must
Be Eliminated.
POSITION is OUTLINED
BY GREEN AND TILSON
Some Compromise Likely in Con-
ference. Which Will Start
Tomorrow.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
The House Republicans last night
prepared TO do battle for the provl-
SONS of the tax reduction bill as ii
passed the House.
The House, as a matter of fact, oc-
CIlpies a strategic position with regard
L. the TAX hill which gives its mem
hers great confidence in the coming
struggle in conference.
The situation as 1t now sizes up is
a. follows:
The House is standing pat for bill
providing for not more than S330,000.-
Oo0 cut in taxes.
The administration has set its face
against a greater cut in taxes than
$3.50 900 900.
Senator Smoot of Utah, chairman
of the finance committee and pros
pective chairman of the conference
committee, after a visit to the PreSi-
dent yesterday, declared that the bill
must be finally framed so as not to
cut more than S35O.000, 900 from the
1dNes.
Predict Higher Figure.
Senator Smoot pointed out that the
bill as 1t finally passed the Senate Fri
day night provides for a total tax re-
duction of S456, ,210, 900. House mem
hers say that the total reduction of
taNeS-which means reduction Of rev
enue-in the Senate bill reach a much
higher figure. In order to meet the
demands of the administration and the
House Republicans, 1t is clear that
more than 500. .000, 900 in taxes must
he restored to the bill in conference.
The House provided for total tax
reduction OF about $3.50 100000.
The position which will tp taken
by the House Republicans waA clearly
indicated by Representative Grssa Vt
Iowa, chairman of the ways and
means committee. and by Representa-
tive TilsOn of Connecticut, the ma
jority leader.
Might Apply Later.
Mr.. Ti1son, however, in his state
ment made a suggestion that some of
the tax reductions proposed by the
Senate bill, notably the repeal of the
estate tax, the tax on automobiles and
the admissions, might be made to
apply at some time in the future and
not Immediately. This, he said was
merely his own proposal, however,
and not that of the House members
of the conference committee.
The estate tax, which the Senate
repealed, will be restored in confer.
ence, II was confidently predicted last
night. The restoration of this tax
doubtless will make measurably easier
the adoption of the conference report
when 1t comes to the Senate for
a-ion. Some Of the Progressive Re
publicans and certain of the Demo.
Gratis We're violently opposed to the
repeal Of this tax during its considera
ton in-the Senate.
Proposals for Compromise.
Various proposals with regard to a
compromise involving the estate tax
have been rumored. But in the end
the House provision for the estate tax,
IT is believed, will prevail. with pos
sthly tb3 retroactive clause inserted
by the Senate, which would Ioake the
1921 estate tax rates apply from June
3, 1224,he date Of the present law
up to the time the new law becomes
effective. The maximum rate in the
1921 law was 25 per cent and In the
1924 law 40 per cent 1t has been
estimated that effect Of this retro
active clause would be to reduce the
tax paid on estates since June 8. 1924
by some sS5, 100000.
Ihe lntlmation was strong last night
that the House conferees would ac.
cept the Senate amendments to the
surtaxeS on incomes ranging from
S24, to 100000 a year In This
connection it may be pointed out that
the House Democrats strongly urged
such notifications while the bill wa :
beford the House, and that the Senate
committee made the reductions now
carried In the bill at the insistence of
the Democratic men,bers of the com.
mittee, led by Senator Simmons of
North Carolina.
Surtax Rate Approved.
The maximum surtax rate, 20 per
cent on incomes in excess of 500. 600.
has been approved by both House and
Senate, and therefore will not be a
bone Of contention in conference.
The repeal of the so-called publicity
clause Of the income tax law also has
been approved by both houses, and
therefore that issue is dead so far as
the present bill Is concerned
Both Senator Smoot and Represent
ative Green expressed the hope last
night that the conference committee
would be able to conclude it's work on
the bill within the coming week and
that the bill finally would be passed
tasE sent to the President for his ap
Js'Oval within a few days thereafter
Senator Smoot said that in order tc
eS>~St1fe the preparation Of the forms
to he used for making out income tax
returns and payments due March Is
the printing Of these forms would be
begun as soon as the conferees ha6
agreed on the surtax rates, the capi
tai stock and corporation taxes. 1t is
expected these matters will be taker
up early in the conference.
Will Work Long Hours.
The first conference on the bill is
slated for tomorrow afternoon at :
o'clock. With a view TO expediting
the measure, the conferees will wort
long hours.
In statement on the tax bill last
night Majority Leader Tilson said:
I'VE expect that the tax bill will
come over from the Senate on Mon
day and that the House will imme
diately agree to conference and ap
point a committee to meet with the
conferees on the part of the Senate
for the purpose of adjusting the differ
ences between the two houses.
TT is my hope that an agreement
will be reached in conference which
will not substantially change the i'm
mediate effects proposed by the origi
nal House bill. l am, and 1 think the
majority of the members of the House
are, in favor Of reducing taxes just as
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