Evening star., 1932-04-28
SENATORS RETAIN
HOUSE COAL RATE
IN REVENUE BILL
Committee, Approving S2-a.
Ton Tariff, Excludes Coke
From Duty.
By the Associated Press.

The Tax-Writing Senate Finance
Committee slowed down today as 1t
argued over the controversial excise and
tariff duties, but it fixed a s2-a-ton rate
on coal imports.
The 10 per cent tax on cosmetics and
toilet articles in the House bill also was
approved, but exemptions were allowed
for dentifrices and soaps. This cut an
estimated $4,000, 900 from the $50, ,oo0, 900
expected from the levy.
Taking up the jewelry tax, the COM
mittee agreed to exempt fiat tableware,
both sterling and plate, but 1t declined
to lift the tax applying to eyeglasses and
spectacle frames. A final decision on
jewelry went over until the afternoon.
Coke Exempted From Duty.
The tariff row was resumed as the
coal tax was reached, but a motion to
eliminate the House duty on coal was
defeated, 10 to 8. The committee, how
ever. exempted coke from the import
duty.
The oil and copper tariff rates went
over for future discussion. The vote on
elimination of the coal import tax was :
For elimination: Republicans-Keyes,
La Toilette and Metcalf; Democrats
Harrison, George, Walsh of Massa-
chusetts, Costigan and Hull. Against
elimination: Republicans-Smoot. Wat
son, Reed Shortridge, Bingham, Thomas
OF Idaho and Jones; Democrats-Bark-
ley, Connally and Gore.
Would Tax Presidents Salary.
The committee yesterday decided to
levy income tax on the salaries Of the
President of the United States and the
Federal judges.
The new impoSt on hitherto ex-
empted Government officials was voted
late yesterday after drastic upward
revision of the income tax schedules,
from top to bottom. President Hoover
is not affected, nor are judges now
serving, but all who hereafter step
into these Offices will, If the clause Is
approved by the whole Congress, bear
share of the cost of government.
War compensation payments to vet
Grams also were included among taxable
items.
So far has the committee been push
ing its work that report of the bill to
the Senate tomorrow has been pre-
dicted By virtue Of the increases
adopted yesterday the Senators hoped
today to be able to reduce or eliminate
several special taxes voted by the House
which have been particularly protested
by business interests and by Secretary
Mills.
Changes Now Made.
Here is what yesterdays proceedings
produced:
Increase in normal income taxes to
3 per cent on the first $4,000 income;
6 per cent on the next $4,000, and 9
per cent above $1,000. Present rates
are IL, and per cent. respectively.
The House voted rates of 2, 4 and z
per cent, respectively.
New brackets were added to the
graduated surtax schedule to provide
for a maximum of As per cent on in
comes in excess of 100000. The
House had voted maximum Of 40 per
cent on incomes over 100000. The
present maximum is 20 per cent.
Reductions by tn. House in the per-
sonal exemptions from $500 to ST.
900 for single persons and from So
approved. This adds a million or more
taxpayers to the rolls.
The corporation income levy was
raised from IL to IA per cent. The
House voted 1872 per cent. The added
tax of 11a per cent on consolidated
returns by affiliated corporations was
eliminated.
A 2-cent stamp tax on checks OF
more than SIS was approved.
The House provision subjecting cor
porate stock dividends to the normal
tax was eliminated.
The exemption from the gift tax was
raised from $4,000 to $4,000 and the
House rates retained.
The tax on lubricating oils was re-
duced from cents gallon, voted by
the House, to cents, applicable to all
grades alike.