The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-06
REVERSES DECISION
AFTER MILLS TELLS
OF H00VER'S VIEWS
High Income Levies, Approved
Thursday, Are Scaled
Down Sharply
OTHER CHANGES ARE MADE
Rubber Import Levy Added and
Taxes on Automobiles
Are Increased

ate finance committee Friday adopted
compromise tax bill.
Confronted with a warning from
Secretary Mills that it had dealt a
disastrous blow to public confidence
and with word the president was
about to issue statement calling the
attention OF the country to his views
for prompt balancing Of the budget,
the committee accepted compromise
program presented by the administra-
ton.
Calling for modifica ton of the high
income rates, it was advanced BY Mills
and was accepted 13 to 4.
The surtax income rates were modi-
fled from a maximum of IS per cent
to As.
1t again changed the income rates
to provide for normal taxes of 3 per
cent on the first $4,000: 6 per cent
on the next $4,000 and 9 per cent
on income over $4,000.
Rubber Is Taxed
A new levy of five cents a pound on
rubber imports was added.
The automobile tax was raised from
3 to per cent.
Previous rates of the committee on
radios. telephones and telegraphs
were kept.
Mills emphasized that the treasury
had no program. but he urged the
committee to "get together with us
and let the treasury put its blessing
on the BILL
He asked elimination of atrocities
and included in this classification the
new surtax schedule with its SIS per
cent maximum, and the added levy on
consolidated returns.
He suggested a lowering Of the ex-
emptions ON the 10 per cent admis-
sions levy to include 10-cent tickets.
A 10 per cent increase in the tax on
cigarettes also was suggested.
The increase in the automobile levy
was taken as all alternative to a 10
per cent boost in the tobacco levy.
Boost Is Considerable
The new income taxes compare with
an existing IA per cent on the first
$4,000 and per cent on the second
$4,000 of income. Exempt from in
come is the single mans first $1,000,
and the married mans first $1,000
(exccpt that if the latter's taxable
income is above $4,000, the exemp-
ton is only S2,000).
Senator Connally (Dem., Tex.),
offered the substitute income tax
schedule with the 1921 rates. He es-
timated it would raise the 500. OOO,-
900 lacking to make the revised rev.
enue bill meet the budget require
ments for 1888.
There was some speculation over
this point so Secretary Mills was
called in to give the final word.
BY an 8 to Z vote the committee
added a provision to the bill imposing
a tax of so per cent on bonus salary
payments to corporation executives.
Tires Arc Excluded
It was announced after the COM
mittee session that the new automo-
bile schedule calls for taxes Of four
per cent on passenger cars. three per
cent on trucks and two per cent on
accessories. Tires were excluded
from the accessories tax in view OF
the new tax on rubber. Grape juice
and carbonated water went out OF
the bill, in the elimination OF the lev
les on soft drinks.
It was decided to have banks col
lect from accounts the two-cent
charge on bank checks.
The committee then voted to &C.
cept in full the program outlined by
Mills. 1t included:
Elimination of the ID per cent
added tax on consolidated returns OF
corporations.
Reduction of the exemption on ad-
missions to include 10 per tickets in
the 10 per cent tax.
Approval of the committees rates
on stock and bond transfers Of four
cents.
Approval of the increased postal
rates on first and second class mail.
A rate of four cents gallon on lu-
bricating oil.
Levy on Bank Checks
Approval of two-cent levy on all
bank checks; per cent tax on gum;
IS cents a gallon on brewers wort;
2 per cent on automobile trucks; 3
per cent on oil pipe lines.
The corporation rate of IA per cent
agreed upon by the committee was re-
tanned.
The house estate and gift tax
schedules previously adopted by the
committee were retained.
Mills voiced no views on the four
tariff items and these were still In
the bill as the committee neared the
end OF its work.
The committee knocked out the
$1,000 exemption for corporations but
modified the bill to allow corporations
to carry over fir one year net losses.
Mills estimated the compromise
measure would raise $l,025. 900 900 in
1888.
{ The secretary emphasized that econ
1 omies in government would have to be
made for the measure to balance the
budget next year, however.
The following excise rates In the
house revenue bill were eliminated In
the compromise program:
Fur, toilet articles, boats. refrigera-
to.s, sporting goods. fire arms. cam
eras. matches, soft drinks, produce ex-
change, and safe deposit boxes.