Evening star., 1932-04-27
Finance Committee Action
Doubles Almost All Indi-
viduaI Assessments.
MEASURE REWRITTEN
IN BURST OF SPEED
Maximum Surtax Raised From 40
to As Per Cent-New Levies
Highest Since War.
BY the Associated Press.

By the Associated Press.
The Senate Finance Committee voted
today to double almost all along the
line the income tax rates OF the Ma
tion's individual taxpayers.
In dash Of speed. the committee
rewrote the income tax schedule of the
House revenue bill, accepted the high
inheritance and gift 1evies voted by the
House and took up the question Of
higher corporation levies.
All normal income tax rates were
boosted above the increases provided by
rate was raised from 40 to AS per cent.
Highest Since War.
The new income levies-the highest
since the war-were approved with only
one dissenting vote, virtually assuring
adoption by the Senate.
Senator CouzenS, Republican, of
Michigan, voted against the income
schedule after proposal of his to re-
vive the even higher wartime surtaxes
was rejected.
The committee almost unanimously
adopted a schedule presented by Sen
ator Harrison Of Mississippi, the rank
ing Democrat, calling for maximum
surtax of As per cent.
Normal income rates were boosted to
3 per cent on the first $4,000 income,
6 per cent on the next $4,000 and
9 per cent on the income above $4,000.
The present normal rates are / z.
3 and per cent. The House voted to
increase these rates to 2. 4 and Z per
cent, respectively.
COuzens Plan Loses.
The vote was IL to 7 against the pro-
posal by Senator Couzens to revive the
1918 schedules providing a maximum
surtax of IS per cent and lowering the
exemptions.
Democrats who opposed the wartime
rate, together with some Republicans
who Joined them, then countered with
the proposal to increase the income
schedules above the rates voted by the
House.
Those voting for the wartime in
come rates included Couzens, Keyes,
Bingham, La Toilette, Thomas Of Idaho
and Jones, Republicans, and Costigan,
Democrat.
In voting the general income tax raise
as proposed by Senator Harrison. the
committee made the increased surtax
rates applicable to incomes over
sl00, 900.
The House schedule provided for a
maximum surtax Of 40 per cent on all
income in excess Of 100000. The Sen
ate amendment builds up a graduated
scale Of rates above 100000, keeping
the House surtax rates up to that point.
The maximum of As per cent would ap-
ply on income over 81 100000.
Committee Shows Speed.
The committee disposed of the vital
income levies with a rapidity that car
ried through the pledge OF the party
leaders for speedy disposition OF the
revenue bill.
With almost unanimous support In
the committee for the new income
schedule, its adoption by the Senate is
forecast. A fight will be made on the
floor by Senator Couzens for even high
er rates.
The committee accepted without
change the lowered exemptions for in
dividual taxpayers provided by the
House. Single persons will be allowed
81 900 instead of $500 and married
persons So. 500 instead of $500.
The House provision limiting earned
income deductions to $4,000 also was
approved. Attempts to increase this to
$50, 900 and $4,000 we're defeated.
Inheritance Rates o. KID
The committee then approved the As
per cent inheritance tax rates voted into
the revenue bill by the House. Secre-
tary of the Treasury Mills had urged a
reduction in the House inheritance
levy.
The new inheritance schedule starts
with l per cent tax on estates of
$4,000, and is graduated to the As per
cent maximum applicable OH estates in
excess Of $10,000,000.
The schedule of rates on gifts, pro-
vided by the House. with minimum of
3312 per cent on amounts in excess of
$4,000, 900, was approved The schedule
begins with rate of three-quarters Of
per cent on gifts up to $4,000. The
committee, however, raised the exemp-
ton from $4,000 to $4,000.