Evening star., 1928-04-26
Finance Committee Approves
Bill in Place of $500, ,000.-
900 House Measure.
TREASURY IS AGREEABLE
TOCUT OF S21O,00O,0 900
Formal Report Delayed Until To-
morrow-Republican Majority
Writes Rate Schedules.

BY the Associated Press
A $685. 900 900 tax reduction bill was
| agreed to today by the Senate finance
committee as substitute for the $780,
100000 measure voted by the House.
The Republican majority on the COM
mittee wrote into the bill the new rate
schedules over the program OF the
Democrats for a 1925. 900, 900 reduction.
The formal report OF the bill To the
Senate was held up until tomorrow,
when some administrative provisions
will be settled
Acceptable 10 Treasury.
This proposal, If given final congress
sional approval. would be acceptable to
the Treasury, since Secretary Mellon
announced today that a tax reduction
of as high as $2l0000,000 would receive
his sanction. The $203 100000 reduc-
ton program includes:
Reduction of the corporation tax
from l3ia TO 1919 per cent; repeal of
the per cent automobile tax. an IN
crease IN exemptions allowed corpora
tons from $4,000 to $4,000, downward
revision OF the rates applying on the
crease In exemptions on the admissions
tax from rs cents to So
The proposal OF Republicans TO repeal
the inheritance tax was laid aside with
out a record vote. This action cuts the
original S2l0,000000 Republican plan
TO the $203 100000 schedule
The Senate bill also would restore the
present rates ON club dues, capital stock
transfers and sales on the produce ex-
changes. which the House had voted to
cut to half in each instance.
Approval was given. however. To the
House provision 10 have the admission
taxes increased from 10 per cent TO IS
per cent on prizetlghts.
S2s.00O.O0O Return Seen.
The House proposal 10 allow a retro
active cut In the corporation tax on the
1927 income payable this yea. was elm
mated, but II was agreed to make the
proposed revision of surtax rates aruly
retroactiVely on last years incomes pay.
able this year which means a return OF
about S25.000.000 TO individual tax
payers
The principal fight today centerad on
the corporation tax Senator Simmons
0f North Carolina, leader OF the Demo-
Gratis on the committee proposed that
the corporation rate be cut TO IL per
cent. The was defeated. IL to 8. on a
straight party vote. with the Republi-
cans opposing II Simmons then pro-
posed q llL2 per cent rate. which was
voted by the House and then a IL per
cent rate. and similar fates met each
proposal.
The Democrats also asked for retcn-
ton OF the graduated tax on corpora
tons with incomes OF $4,000 and less
which was voted by the House and this
also was rejected on q party division,
On the repeal Of the auto tax which
was provided In the House bill the COM
nlittee was unanimous.
Another attempt by Senator Reed
Republican, of Pennsylvania, To have
the capital gains of insurance com.
panies included In their profits, was de.
teated 10 To g. on bipartisan vote
Simmons Drafts Report.
Senator Simmons OF North Carolina.
ranking Democrat on the committee.
drafted the minority's program at a
conference OF Democrats on the COM
niittee Yesterday and he is prepared To
carry his fight 10 the floor
Chairman Smoot, however. believes hG
has program which viii win almost
united support While administration
Republicans have lacked support In the
past from the Western insurgent grouo
ht taH iikhtS, bllty expect LtliS SuppHHl
now In view of it's declaration against
any cut this session On that basis. II
Is felt, the Western group will support
the program calling for the least re-
duciton.
This Is expected 10 be true at least
In the fight for reduction OF the cor
poration tax, where the main fight will
hinge However. the Westerners are
not prepared to give any support to
Senator Smoot's plan for repeal OF the
inheritance tax. Neither are the Demo-
Gratis united on this proposition. and a
merry contest with party lines obliter-
ated Is In sight on this issue
Republican Proposal
| The Republican proposal for revision
OF the surtax rates applying on inter-
mediate incomes, showing the brackets
OF Income In the present law and those
| proposed, follows;