Evening star., 1928-05-27
PRESIDENT GETS
TAX SLASH BILL
ACtuarieS Estimate $685.
100000 as Limit of Re-
duCtion for 1929.
Rr A. Assnclafe.i press.

BY the Associated Press.
First to come and last to so of the
great financial legislative problems OF
the SEVENTEEN Congress. the tax bill
was forwarded from the Capitol yeSter-
day to President Coolidge. 1t proposes
an aggregate tax cut Of 1922, $4,000.
The finishing touches in Congress
were effected in the House where the
measure originated, that body approx
ing without a record vote after an
hours debate the compromise agree
ment worked out with the Senate.
The House action brought 70 close
a tempeStuouS five-month legislative
Journey which formally began the first
day of the session when the measure
was introduced as House Bill No. !.
Even before its birth in bill form the
measure had been considered for
month by the House ways and means
committee
AS sent to the White House the bill
comes within the S225, 100000 mark set
last November by Secretary Mellon as
the maximum amount Of revenue re-
duction that could be effected without
harm 10 the Treasury. Il Is. however,
considerably above the revised margin
OF safety set by the Treasury several
Repeals Auto Tax.
The final figure Of 1922. .495. 600. how
ever. represents a big reduction from
the approximately Sc90000,000 cut
originally approved by the House when
ii first acted on the measure.
Included among the major reductions
proposed by the measure are the follow
ing: A cut in the tax rate on corpora
ton incomes from 1872 TO II per cent;
outright repeal Of the per cent tax
ON automobile sales; increase from
So 600 10 $4,000 IN the exemption
granted CORPORATIONS with incomes of
S24 600 or less: increase from S25.000
TO $50. 600 in the amount of income on
which the IS per cent reduction for
earned income" may be applied and
an increase from IS cents 10 $500 IN
the exemption on theater admissions.
The bill proposes no adjustment OF
the SlIrtaX rates and affects in no way
the rates on individual incomes. 1t like
wise makes no provision for repeal OF
the Federal inheritance tax as sought
hy the Treasury and the Senate pro-
poSal for publicity on tax incomes was
eliminated
Chairman Hawley of the ways and
means committee. in charge of the bill
IN the House said he was convinced
that the condition Of the Treasury war
ranted the proposed cut.
Country Can Stand II,
There IS no question Of the suf-
nciency OF revenue for this year or
rext year. he declared, but the prob
lam VIII arise in 1880 and subsequent
YEARS believe the country can stand
this much reduction"
= Representative Gamer Of Texas,
Democratic leader on the ways and
means committee, declared that the
reduction total after the fiscal year
1880 actually would be S225 AIS 600 in
stead Of the s222, ,495 900 figure. He
argued that this would result from
administrative changes proposed by the
bill
Garner added that In view of the
appropriations either made or author
ICED 6y the present Congress. the s222:-
495.00o total comparatively was much
larger than the $3.50. 200. 600 originally
proposed By the House.
Effective Next Year.
Actuaries Of the Treasury advanced
sill another figure as the total reduc-
tson represented in the bill. They
placed II at SIS. 900 900 for the fiscal
year 1929 and explained that the full
eject OF the measure N1zA not De lelL
until the fiscal year 1880. The reason
for the comparatively small cut during
the next fiscal year they found IN the
tact that the reductions do not become
effective until next January l.
Since the reduction is lower than the
Treasury had proposed and the clause
for publicity for income tax returns has
been eliminated, Treasury officials do
n0t believe the tax measure Is IN any
danger Of q Presidential veto.
Losses In revenue under the new bill,
as estimated by the actuaries, include
Sl2S, S,45o, 600 by reduction IN the rate On
the corporation tax, sec, 900 900 by re-
peal Of the automobile tax, SIT 900 600
by the revised amusement tax. Si2 ,000,-
600 by exemptions on incomes Of cor
poratlong, S4,500, 900 by raising exeYnp-
ton on earned incomes, 81 900 900 by
yepea! Of the wine tax and 81 900 900
b revision of the tax On club dues.