Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-15
MILLIONS SLASHED
FROM TAXPAYERS
LOAD BY SENATE
Republican and Democratic
Leaders Join in Passage of
Measure, IS to Ia.
RESOLUTION AWAITS
PRESIDENTS SIGNATURE
Day of Debate Centers Principally
on Business Conditions and
Unemployment.
~ the Associated Press.

By the Associated Press.
A slash of $3.50, 900 in next years
dues of individual and corporation In
come-tax payers was assured yesterday
with the adoption by the Senate of the
House tax resolution by 63-to-l4 vote.
Republican and Democratic leaders
joined in support of the proposal, and
repeated attempts to amend or substi-
tute the tax cut were overwhelmed
throughout long day of debate.
Western Republican independents as
sailed the reduction as gift to the
rich, but Democratic Spokesman sup
ported the contention of administration
leaders that 1t had buoyed UP a deli
cate economic situation and was vital
in the revival of good conditions
throughout the country.
Eleven Western Republican indie
pendents and three Democrats were the
only ones voting against the resolution
On a roll call reached late in the day.
Awaits Hoover's Signature.
The resolution still must be signed by
President Hoover, and 1t goes to the
white House tomorrow. Mr.. Hoover
already has advocated it, and his sig
nature is expected forthwith. The leg
islation is the first of the regular ses-
sion, which began two weeks ago, to
complete the congressional circuit.
The long day of debate centered
principally on business conditions and
brought frequent reference to unem-
ployment. Senator Couzens, Republican,
of Michigan, who sponsored an amend
1nent to include also reduction In the
capital gains and loss tax from 1914 to
ha haeT1
informed that unemployment had ad-
vanced from 100000 to more than
5000, 900 men in recent days. He sup
ported the tax cut as a means OF
Diminishing unemployment.
Senator Wagner. Democrat, of New
York, who sponsored recent lnveSt!ga-
ton into unemployment took the same
position and deplored that partisanship
should take any part in consideration OF
the resolution.
COuzens Plan Rejected.
The CouzenS amendment was rejected,
SO to %, but Chairman Shoot of the
finance committee announced that he
would favor the proposal as the first
point in the next general tax revision.
The tax cut applies only on THIS
years income on which taxes are TO be
paid next year. Democrats inquired
whether a permanent revision OF the
revenue rates was not contemplated
Smoot indicated that as soon as busl-
ness was on a normal basis and the IN
come of the Government could be
definitely established, such course
would be considered.
Senator Norris of Nebraska, a leader
of the Republican Independents, again
led the attack on the resolution, insist
ing the "only justification given for 1t
is its psychological effect on business.
He remarked that the Government
should dismiss all its tariff, financial
and economic experts and hire psyche
1ogistS to take their places.
They ought even to discharge the
Senate chaplain" he added, land hire
of having a preacher to pray to US"
Suggests Road Fund.
Senator Thomas, Democrat, Of Okla
homa, offered substitute proposing
that instead of tax cut the Govern
ment appropriate 100000, 900 for road
construction and $60,000000 for addi-
tional construction of public buildings
This was defeated by Sc to 20.
Senator Brookhart, Republican: OF
Iowa, proposed an amendment substi-
tuting a graduated scale OF rates Tor the
present corporation rate OF II per cent
This was rejected so to l6.
He would have kept the maximum
corporation rate the same as provided
by the resolution-11 per cent-and had
il apply on all corporation income over
S23 600. with the existing individual tax
rates applying on income up to that
amount.
Senator Barley, Democrat, of Ken
lucky, advanced an amendment provid-
ing for reduced rates on tobacco taxes
but this was shouted down without a
record vote.
Replying to repeated contentious OF
an agreement between the Republican
and Democratic leaders, Senator SIM
mons of North Carolina, ranking Dem
ocrat on the finance committee, denied
this and recalled the conference at the
Treasury when Secretary Mellon hac
called in the Republican and Demo
cratic leaders in the House and Senate
TO consider the tax resolution.
cat that conference" said Simmons
"the Secretary of the Treasury laid pc
fore us the proposition contained In tnE
Joint resolution.
Would Inspire Confidence.
"He explained that in view OF TIT
then critical business condition, If tht
reduction were made in the way pro
posed it would be an assurance TO tn
public and inspire confidence. He SAT-
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