New Britain herald., 1927-11-22
COMMITTEE VOTES
 CORP. TAX SLASH Refuses to Repeal All Sales
 Revenue on Autos IGNORES MELLON PLANS
Leaders Go Directly Contrary to Treasury Recommendations in Re fusing to Repeal Federal Inheri- tanCc Taxes or Reduce Surtax.

I S'lt N eL' app ONt toddy ny tit house ways and means committee. The vote was 2o to 1. The com mittce estimated that this reduction would result in a loss of s166,00Q,- ,- 0G0 in revenue. The treasury had recommended cut to 12 per cent \ motion to reduce the corporation rate to only II per cent was defeat ! ed 1G to I.
 The committee refused by a 1e to II vote, to repeal entirely the sales tax on automobiles. leaving final de cislon to future sessions. Retention of the levy was advocated by the treasury and strongly opposed by automobile interests at the recent committee hearings.
 Admission Tax Undecided
 \ motion to repeal the tax on admissions under s3 was similarly left undecided, as Was proposal to increase 10 D per cent the present levy on tickets to prize fights.
 The exemption on net incomes In excess Of s25,o00, ,000, in the case Of q domestic corporation, was increas- cd from s2,ooo to s3.ooo. The vote was 15 to s.
 Washington, Nov. .c tP,-The house ways and means committee has limited prospective tax reduction tentatively 10 s25O,o00.oo0 a maxi mum s25,0oo,00o greater than that proposed hy the treasury.
 Moreover, it has gone directly contrary to the recommendations Of Secretary Mellon in two other re- spectS. II has refused to make any move toward repeal of the federal inheritance tax or reduction Of sur tax rates falling within the interme- diate brackets.
 Action on these three propositions came late yesterday at the end of stormy session. Two motions for maximum tax cuts greater than that finally agreed upon were defeated. one by a single vote. A proposal 10 make the limit $300.000,00o was lost on a straight party vote 13 to 10--but acting on q figure Of $c15,- d60,b00, one republican member joined with the democrats to make the count 12 to II. Although the ma jority was described by one mem- Der as overwhelming" exact figures on the vote adopting the s250,000.- 900 maximum went unnanounced.
 Agrees On One Plan
 The committee found itself in agreement with a single recommen- dation of the treasury, that propos- ing a reduction in the tax on corpor- ation incomes. It was decided that these should be reduced, but by how much was left to be settled later.
 Consideration of taxes on admis- sions, automobile sales and club dues with a view toward repeal or reduction also was left for a future session.
 Rep. Garner Disappointed
 Representative Garner of Texas, ranking democratic member of the committee, later expressed disap- pointment at the maximum agreed upon. predicting that before the measure has gone through the house and senate the $o50.Ooo,00O figure will have been materially increased.
 He regarded the action of the committee as indicating that the new revenue bill would embody corporation tax rate of II 1-2 per cent. with a revenue loss of $112.- 000,0 reduction Of the automobile sales tax from 3 to 1 1-c per cent. with loss Of about s33 000,000: a loss of s10, 100000 through repeal of the admission taxes on tickets priced at less than $500; and elimination of the levy on club dues with a loss of s10,000.00o.
 The Texan predicted too. that the treasury recommendation that small corporations be permitted to file re- turns as partnerships would be dis regarded and substitute advanced under which graduated tax run- ming from five per cent on incomes under s7,0G0 to per cent, on 1n- comes between s12,00o and s15,ooo would be imposed. This plan, he said. would entail 6 revenue loss or about s27,000,O0o.
 Coolidge Defines Stand
 While he believes that 1t Is the duty of the house of representatives to frame legislation affecting taxes, President Coolidge still stands by the treasury recommendation Of total tax cut of 5.000,oo0.
 It was said today at the White House that Mir. Coolidge feels the action of the ways and means com- mittee in increasing the treasury by $25. ,000 is that might have been considered more carefully and he believes that the increase was too much at this time.
 However. it was said, the presi- dent is willing to concede that the committee had certain information at it's disposal which led 1t to feel justified in overruling the treasury recommendations.