Evening star., 1927-11-23
Total Cut, Based on Figures
of Treasury, Would Be
Near $3.50, 900, 900.
GARNER SAYS DEMOCRATS
WANT BIGGER SLASH
Minor Issues of Problem to Be
Taken Up by House Com
mittee Today.
By the Associated Press.

by IIe AsSOcdted Press.
Agreement by the House ways and
means committee on a total tax cut
of $235, $4,000 found interest at the
Capitol today centered on the treat.
ment the committees program would
receive when called up for considera.
ton on the floors of the House and
the Senate.
While the committee itself con.
tinued to consider administrative
features Of the prospective revenue
act, members at both ends of the
capitol were discussing the proposed
revision in rates and whether or not
determined fight would be made
alter Congress convenes to revise the
committees tax reduction plan.
1t was recalled that the Treasure
mad repeatedly declared that a tax
cut IN excess Of $225 5.O00,O 600 would
endanger the Governments fiscal re.
sources and that President Coolidge
had expressed belief that the Treas.
ury figures represented the maximum
reduction advisable.
Garner Forecasts Fight.
Among those forecasting stiff on.
position to the committees program
was Representative Garner of Texas,
ranking minority member of the ways
and means committee and one Of the
Democratic spokesmen on tax reduc.
ton in Congress.
Immediately after majority of the
ways and means committee late yes
terday had approved the proposed
reduction of approximately $236,000,-
900, the Texan declared that a slice
in revenue of $350,000,000 was possi-
BILE, and predicted that the total re-
duction would come nearer 1926, ,000,-
900. before the bill reached the White
House, than the amount approved by
the committee.
The action of the committee late
yesterday in disposing of all major
issues entering into the question of
tax reduction paved the way today
for discussion of minor matters.
1t Is the hope Of Chairman Green
that the tentative program for re-
vision Of the revenue rate will be
drafted into bill form by the week
end and that the committee can pro-
ceed within a few days to consider
alton of the measure with a posSl-
BILE view to its Improvement.
Regarded as Majority View.
The chairman, however, has indi-
Gated that he regards the decisions
arrived at on the major question as
final, so far as the committee is con-
cerned, and that no material attempt
will be made between now and the
reporting Of the new revenue bill to
the House to change the program
in its present form.
The committee program for tax re-
duction, regarded as representing the
position Of the majority party in the
House; the recommendations present
ed by the Treasury and the proposals
advanced by Mr.. Garner are as fol
lows:
The tax on corporation incomes
Committee approved reduction from
1919 per cent to 111a per cent; Treas
ury recommended IL per cent: Demo
Gratis 10 per cent. Committee estimate
loss in revenue, $166,000,000.
Tax on automobile sales-Comnit.
tee, reduction from to 11s per cent;
Treasury, retention of the levy; Demo
Gratis, repeal. Committee estimate loss
in revenue, s33 100000.
Tax on admissions-Commi in
crease in exemption from Is cents to
81; Treasury, retention of the levy;
Democrats, repeal. Committee estimate
Of loss. $S,000,000.
Club Dues Levy Cut.
Tax on club dues-Committee, one
half reduction of the levy; Treasury,
retention: Democrats, repeal. Commit.
tee estimate Of loss, $5,000,000.
The Federal inheritance tax-conl-
mittee, retention of tn levy; Treas.
ury, repeal; Democrats. retention.
Downward revision of surtax rates
on incomes falling within the inter.
mediate brackets-Committee, reten-
ton Of present rates; Treasury, slight
downward revision; Democrats, reten-
ton Of present rates.
The committee, with some Demo
cratic support, approved increase
from $4,000 to $4,000 OF the exemp-
ton granted domestic corporations
with an income of $25,000 or less. The
Treasury proposal for relief of small
corporations was rejected.
The committee approved an IN
crease from 10 per cent to % per
cent in the tax on s5, or higher
priced. tickets to boxing matches.
This action was in line with the rec
ommendation Of Secretary Mellon.
Other Items Listed.
Other items to receive relief in the
committees tax reduction program in
cluded:
Repeal Of the tax on cereal bever.
ages; repeal of the stamp tax required
on sales of produce on exchange; re.
duction from cents to l cent on each
500 Of value in stock transfers: re
turn to the pre-war level in the ta1
schedule on wines.
Chairman Green of the ways and
means committee explained yesterday
that the committee estimated the total
reduction of its proposed revision in
rates would approximate S236. 100000,
but that this figure had been reached
by using committee estimates of the
prospective cut in revenue. He said
that If figures relating to reduction
in the corporation tax, presented by
Mills of the Treasury,
had been used, that the program
would call for a cut of about $249,.
900 900.
Mr.. Mills estimates that for each
I per cent reduction in the corpora.
tion tax, Green said, there will be a
loss Of $90000,00 in revenue. The
committee. after questioning Treasury
actuaries. he added. estimated the loss