Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-10
TAX
REPEAL PROPOSED
Smoot and Senate Commit.
tee Cut Out Levy After
Democrats Attack.

By the Associated Press.
Revision of the House tax reduction
bill to include complete repeal of the
inheritance tax was proposed yeSter
day by Chairman Smoot of the Senate
Finance committee, which will decide
tomorrow on the rate schedules of the
measure.
The chairman announced his posi-
ton after an attack on the nhdita nee
tax by Senators Fletcher and Tram
nell. Democrats, of Florida. who APP
peared before the committee. Repea
of the levy also was urged by the
Speakers of the South Carolina and
Arkansas Houses and Representative
Edgar a Brown and Thomas p. Hill
respectively, and by Lieut.. Gov. Nc,
Call of Arkansas.
Senator Shoots declaration was the
first definite indication from Repub
lican ranks of a program of revision
of the non-partisan House bill. which
had been Endorsed lin general" by
Secretary Mellon. The Treasury Sec
rotary, however, has repeatedly advo
Gated repeal of the Inheritance tax or
the ground that this field of taxation
should be left to the States.
Democratic members of the finance
committee yesterday completed their
program of tax reduction, which they
committee substitute for the rate
schedules in the House bill This
plan would call for more reductions
than the s330,000,0 900 provided by the
House measure, going probably as
high as S425, 5000
A quick showdown on the rate
schedules is expected when the com.
mittee takes up these provisions to-
morrow. Democrats, who are in the
minority. to 10, will vote solidly for
their substitute program, while the
Republicans are expected to vote for
the rate schedules. in the main, in
corporated in the House bill.
Support Is Doubtful.
How much support Chairman
Smoot will get for his motion to re-
peal the inheritance tax is doubtful,
but there are Indications the Republi-
can members of the committee will
unite in backing It,
The final test on the bill will come,
however, on the floor of the Senate.
Democrats are counting on gaining
enough votes there from Republican
insurgents to offset the Republican
majority and, while their program has
not been announced. it is underst God
it does not contemplate repeal of the
Inheritance tax, but provides prob
ably a slight increase in it's maximum
rates and restoration Of the present
gift tax. which the House measure
would repeal
Senator Smoot declared yesterday
If the committee voted to repeal the
inheritance levy, he would present a
plan to raise the additional revenue
necessary to offset the amount such
action would cut from Government
revenue.
Under the proposed terms of the
bill. Senator Smoot declared the Gov
eminent barely would collect enough
from 100000 estate, after the credit
of so per cent for State payments had
been allowed, to pay the cost to the
Government of making the collection.
Despite the pending fights on the
bill. leaders of both parties gave as
srrance yesterday that the measure
would be acted upon promptly SC that
the reductions in income taxes might
be taken advantage of in the payment
of first installments due March Is.
Senator Smoot predicted the COM
nittee would be ready to report the
bill by next Thursday, and said he
would ask the Senate then to take up
it's consideration on the first of the
following week. Senator Simmons of
North Carolina, ranking democrat on
the committee. announced yesterday
he also would favor early and prompt
action on the bill in committee and
in the Senate to assure its enactment
into law by March !.