Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-05-22
Senate SENDS
TAX CUT BILL
!; TOADJUSTORS
Upper House Act Has
EOS Million Slice AS
Compared With 29O
House Slash

O. WASHINGTON, May 22.-R-A
\ SOS, 000, 900 senate tax reduction PHI
r was bound for the congressional al
! lustment room today. there to meet
its $500, 0O0, 900 house partner for q
reconciliation Of differences.
The senate passed its measure late
\sst night after several attempts 70
tch tariff and farm riders were
overwhelmingly defeated. with tne
democrats aiding the republicans IN
refusing saddles 10 these proposals
: These two groups parted company
however. in a stirring last minute
battle which the republicans won
thus keeping their program WITHIN
+. range Of the s200.000.0OO reduction
limitation set by President Coolluge
and Secretary Mellon.
Democrats Defeated
the In this drive the democrats we're
= sfeated after two roll calls. the last
spec .~sulting in n tie vote which was
min .roken by Vice President Dawes, or
por the one plank of their S325, OOO,UOu
VII program they previously had placed
in the bill-a graduated scale 81 low
er rates on corporations with IN
II ZONES under $4,000. I,
Dc Elimination OF this provision Topped
off $24, 100000 in the total reduction
se provided by the measure, which was
ab. ther -pproved without a record vote.
The 7 -obably will be several days be-
-. agreement is reached between
~ nate and house conferees. but
= = are confident the measure
tion AT e whipped into shape for finai
The | val by both the senate and house
tion p sent to the president by the end
2. L the week. Adjournment Of CON
radio ess by Saturday or early next week
onera planned.
~ Believe Larger Cut Safe
tent While the president set 5000. 000.o 600
as the outside limit Of tax reduction
which the condition Of the treasury
'whi would permit. leaders believe ne VIII
'forr sign a measure providing a cut o.
r $3.50, 000, 900.
' lille, Corporations get the biggest slice
.af,o,f the tax cut. winning Sl2,OOo'ooo IN
re increase in exemptions for cor
gen. orations from $4,000 TO $4,000. and
TT SO. O00, 900 in the senate bill which
gen. educes the corporation rate from
be- 13 1-2 per cent % II IL per cent, or
si64,00 0 1000 in the house measure
, which slashed the rate TO IL IL per
F, cent.
The following reductions were vot-
ed by both the house and senate and
will not be subject 10 change in the
: impending conference:
r Repeal Of the 8 per cent automobile
J tax, 'oss in revenue $685. 600, 700; in
crease in exemptions allowed cor
pore IONS. loss sl2.0 10 900; repeal Of
:, Ger, | beverages tax. loss SIS $4,000;
: 81 reduction of wine tax, loss $780,
& MOI.
Stha Many Differences
CO Differences exist over reduction in
the corporation rate; increase in ex-
emptions allowed under the admis-
= ion tax. the house voting to raise
TIE rs cents exemption 10 81 and the
senate to So: in the 10 per cent club
dues levy. the house voting to cut
this in half while the senate restored
the full rate but increased the ex-
emption from $40 70 S25; in the
|. graduated scale OF lower rates on cor
; porations with incomes under s15,-
J 900; in revision Of the individual in
\ come surtax rates applying on the
> brackets OF $4,000 20 100000 in
. comes. the house making no provision
Z for this which was voted BY the SEN
IA ate: and in the taxes on capital
stock transfers and future sales Of
~ produce, levies which the house modi-
fled but the senate restored.