Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-28
SMOOT HITS NORRIS
PROPOSAL TO GET
MORE TIME ON TAX


ure and one which should be care
| fully considered by the Senate.
! Opening debate on the tax reduction
| bill today. Chairman SmOot of the
| finance committee, in charge of the
measure. set February 10 as the date
| for fnal passage if tax reduction is
70 be assured by March 10, when first
| income tax instalments are due.
Senator Smoot said ample time
| should he given for debate, but he
warned that after passage of the
measure by the Senate the bill must
| be sent TO conference for adjustment
| of differences between the House and
/ Senate. With a further delay while
| new income blanks must he printed.
| The committee chairman discussed
| principally the taNreducing points of
the bill. particularly those provisions
| by which committee under compro-
| mise agreement of Republicans and
! Democrats increased the amount of
| total reduction of $3.50, 600 900 provided
| by The House bill to 1852 600 900.
Reductions in the income taxes pro-
rided by the measure would amount
| to S2l9.0G00 900 this year, Mr.. Smoot
said. which he divided as follows: In
| comes of less than $4,000. So, zoe, 900;
| incomes of $4,000 to 100000, $46,-
| 800 600: incomes in excess of 500. 900,
| Sl20 000. 600
Anticipating attacks on the grounds
| that the new rates gave too much
! reduction on incomes over 500 900 by
slash in the maximum surtaX rate
| from 40 TO 90 per cent and not enough
| on incomes between $4,000 and
100000. Senator Smoot declared the
principle of sound economics" was
| involved which looked further than
to the interest of any individual or
| group"
The largest single source of income
| for those having incomes over 500. 900
| is from Dividends he said. I'VE have
made no cut in the corporation tax.
1t is only proper that the tax on
| dividends should be reduced through
the surtax reduction. To tax corporate
earnings first at the 1919 per cent
rate, whether distributed or not. and
| again at the 90 per cent. in case of
a distribution to persons with an in
! come in excess of 800 900, or a total
OF 32l2 per cent. would seem to he
going quite as far as justice and fair
| ness can permit"
| Collection of Revenue.
He explained that under the new
I tax rates revenue would he collected
| from personal incomes as follows.
Incomes of less than 10000, S67. 900. :
600: incomes of $4,000 to 800 900
1922 900. 900, and incomes in excess of
100000, $500 900. 900.
Those who have high income.
each year, he continued. must con-
! tribute any tax saving toward invest
ment in industrial enterprises. react
ing to benefit all of the people. and
an additional tax contribution to the
| Government must result in suhse
quent years from the corresponding
increase in corporation earnings and
dividend distributions: those who
| nave large incomes for the first time
In their Ives-that is, incomes i'm ex
cess OF Sloo ,oo0-are certainly max
ing proper contribution to the Gov
eminent under law that ohIisas
them to turn over one.fourth of their
pront In the form OF taxes"
advocating repeal of the provision
! aho"ilS publicity Of income tax nav
ments, Senator Smoot declared # NJ
niue Vafue because of obvious means
vi making raise returns, which could
De corrected after publication. The
ireasury' ne said, has been unable
| TO trace any additional tax receint :.
from the fact of publicity
Defending the repeal of the estate mr.
! inheritance tax. the committees chair.
man declared lit would seem ouite
proper at this time for the Federal
Government to withdraw from field
OF taxation which is 80 fundamentally
ana naturally within the peculiar
province OF each individual State
The constitationality of this tar
ne continued, rests upon the nrinci.
pie that 1t is an excise tax ,pon the
mere incident OF transfer Of the estate
at death, and the value of the estate
Is used as basis for the application
Of the tax rates"
The provision in the House bill al.
lowing credit OF 80 per cent on &C.
| count OF payments to States on in.
heritance taxes was assailed by Sena-
tor Smoot as constituting coercion OF
the States, and he defended the retro
| active cut In Inheritance rates so as
to make the 1921 schedules appIy on
all inheritanceS up to the time the
pending bill becomes law rather than
the higher rates in effect since 1924.
Thls was done in "a spirit of fairness
md justice to the living and the dead -
he said, estima ting that it would cost
$40 100000 this year to make the
retroactive reduction.
Discussing reductions made in the
excise and miscellaneous taxes, Sena-
tor Smoot pointed out that 1t was i'm
possible to give all the relief asked.
e