Douglas daily dispatch., 1927-11-23
TAX REDUCTION
PROGRAM 0. KID
B Y COMMITTEE
Final Figures Adopted
Show Revenue Cut of
$235,82O,OOO

WASHINGTON Nov. % lP)--Dis-
posing in rapid order of all major
issues entering into the question OF
tax reduction. the house ways and
means committee today approved
program calling for o total cut in
revenue rates Of $235,S20,OOO.
The program is expected to be
whipped into bill form Immediately
so that reading of the measure may
be started before the weekend Tor
possible changes in it's provisions.
While The committee, according TO
its own computations, kept well with
in the 50,000000 maximum reduc-
ton set by itself, it exceeded by
slightly more than $10000000, the
figure proposed by the treasury. 1t
also refused to adhere to any of the
major recommendations submitted by
the department
Chairman Green explained that the
committee, in placing the total pro-
spective cut at nearly $236,000,000 had
used its own figures, and that II
certain estimates, submitted by Under
Secretary Mills of the treasury, had
been taken for basis, the total re-
duction would approximate $24e,00O,-
0OO
At the outset OF its session today,
the committee, by a vote OF % to l,
approved reduction of the tax rate
on corporation incomes from 13 IL
to IL 1-2 per cent, against the IL
per cent suggested by Secretary Mel
lon. This action came after Iejec-
ton, 16 to 7, of o proposal to cut
the rate to II per cent.
The committee estimated the loss
in revenue by this reduction at
S166 100000, while Mr.. Green said
the treasury figures would call for
a loss of $180,000,000.
A motion also was approved to
increase from $4,000 to $4,000 the
exemption granted domestic corpora
tions with a net income OF $4,000
or less. The estimated loss in revenue
was placed at $12,000,000.
On another vote, 18 to 5, the sales
tax on automobiles was sliced from
8 to l 1-2 per cent, after a move
to reduce it to per cent had failed,
II to A. The estimated loss in
revenue is $33,OOO,O00.
The committee hallotted, Is to 3, to
111CICdOC 41O4A1 ~ NOAAVc w VA1 SAHS
exemption on admission tickets. A
move to raise the exemption to $1.50
was rejected, IL to s, and another
proposal to exempt up to So was
defeated, IS to 5. The loss to the
treasury is estimated at $8,0O0,0O0.
The committee voted, Is to 8, to
increase from 10 to 25 per cent the
tax on $5, or higher priced tickets
to boxing matches estimating the
increase at S5OO,O0o.
Another ballot, Is to l, cut in half
the tax on club. dues. A move for
repeal of the levq failed, IA to g.
A loss of $5,OOO,OOO is expected.
The tax on stock transfers was cut
from two to one cent on each $100
of value; the one cent tax on the
sale of produce OF exchange was
repealed, and the tax cn wines was
restored to its pre-war level.
While the committee was taking
this action at the capitol. it was dis
closed at the White House that Presi-
dent Coolidge believed the committee
had gone too high yesterday In
setting its maximum at $250,00o Goo
This announcement, however, was
made before the committee announced
its total would not exceed $236, 900 900
It also was said on behalf of Mr..
Coolidge that while he believes it the
duty Of the ways and means COM
mittee to frame revenue legislation,
he favored the maximum set by the
treasury rather than that proposed
yesterday by the committee.
Also pricr to the committees action
today, Under Secretary Mills ex-
pressed doubt as to the adviSability
of a cut IN excess Of the treasury
maximum He said that the COM
mittee, i'll his opinion, had invaded
dangerous territory.