Show i i TWO TSO AND A HALF MIlLION I PERSONS TO ESCAPE TAX TAXI I ON INCOME IF BILL BaL PASSES I Propose Exemption Changes in in Revenue Measure Raise tion Allowance and Cut Present Rates Final Vote Due About March 1 May Cut Levy on Estates D B By HARDEN nA D COLFAX COLFA Special of TIle The Standard Copyright 1928 1926 Consolidated Press Association Jan 16 16 Changes bythe which may b be e made maJe by the senate senata In the tax bill as aa It II the house will not prevent some persons who paId Income taxes to Uncle Sam In 1025 from b being exempt In 1926 and all other taxpayers whose whoso Incomes last las year were Wore no greater r than In 1924 will pay much les less lesa than they 11 did 1 last fast year It is II well veli to grasp these thue the e essen een essentials and cling to them firmly be- be be before tore fore the tho brain grows dizzy In con con- con contemplating t the round merry ot of changes In the tho revenue bill mad madr by the senate finance committee or prepared by Individual senators senator for proposal when the measure Is taken up for action by the tho elder statesmen MUCH RED lIED TAPE I The finance committee has made mad numerous changes In the house bill Some Somo would be of far tar reach reach- reach reach-I reaching reaching ing effect others are of or narrow narow scope Some are the result or of unanimous committee action others were voted voled by partisan or otherwise divided action It Is rea- rea reasonable reasonable rea reasonable to assume that the senate will approve some If It not all or of these theae changes proposed d by Its com corn committee committee and It Is In likewise a reason reason- reasonable reasonable able assumption that a few row other changes may be made by the sen- sen senate senate sen senate ate aside from the commit committee toe pro pro- proposals pro proposals Then after the senate has voted on the bill the changes must be considered by a conference com corn committee committee of or the two branches of or con cort congress gres gre gress tor for adjustment and the Ye- Ye result re result sult suit r reported ported back to the house and nato senate for their approval before the final vote can be taken and the m measure asure sent to the president for tor his signature In view of o this n necessary legis- legis legis legislative I procedure the tho chickens should not be counted until I hatched Much uch oratory must roust flow and much hard work must be so- so ac accomplished before the revenue bill billIs billIs billIs Is sent to the chief r executive Do- Do De Developments ot or the tho week Indicate that the senate will vote on the bill bout about February 10 The conference committee probably will require 10 days or two weeks time The final vote on the conference re- re report re report port promises to be not later than March 1 Not until then will alt all the t terms of ot the revenue act or of 1926 be known definitely Returning to the realm of ot certainty certainty there appears to be In the senate almost unanimous approval or of the normal Income tax rates and the per personal on l exemptions and de- de de deductions which the house wrote In- In Into into In Into to the bill INCREASE A CE By Dy Increasing the credit for tor a single lingle person 1000 to 1600 and for tor a married person from 2 to leaving lea unchanged the credit ot of 1400 tor for each addi- addi additional addi additional dependent the bill will elim eliminate taste some persons persona from the tax roll rolls This Item alone viii reduce the revenue about abou Income tax tar returns were filed In 1925 1926 by Inch Indi Individuals Extension of or the credit Items will reduce the returns in 1926 to the lowest number since 1919 The new normal tax on which there Is II agreement reduces s the rate on the first tint to 1 per percent percent Percent cent from 2 per cent to 3 per cent from 4 per cent on the next and to 6 per cent from 6 on the tho balance This cut affects all per per- persons sons subject to Income tax nd nd means mean a 0 reduction of ot I lit By extending the 25 per cent t earned in- in income In Income deduction allowed for come to of or Income Instead In-I In or of as 81 appears to be agreed upon more will bo be 1 saved cd taxpayers I Surtax rates and many of or the I miscellaneous taxes remain In some doubt as to final form It Is II certain certain tain tam however that the general public will benefit In this direction direction tion only the extent being doubt doubt- doubtful doubt ful rul ful I MAY Y L CUT cUr ESTATE TEstate TAX T Estate taxes are arc In the TI doubtful I toe stage but It If this clause claue survives the tho rates ratel will be reduced In any I event the thc effect upon revenue will Willi not nol be felt relt for tor more than a 0 a year The finance committee has agreed to recommend elimination hasl or of the capital stock tax whIch yields around and anti to toI I replace this revenue by Increasing the 12 per cent corporation tax lax to 13 per pcr cent for tor this year and to 13 3 1 per cent next yea year The finance committee also will recommend a two per cent sales tax on motor trucks Instead of or 5 per cent cont as a at present whereas the house houe bill eliminated this tax About a year ear Is II In- In Involved involved In Involved In this proposed change The committee also allo will recommend recommend recommend mend In la Its majority report at aleast least changes In the house pro pro- provIsions provisIons visions pro vIsions In the amusement tax sev eral stamp taxes a minor tax on foreign built yachts and anel In la Its search for tor a lter c five cent nt 10 cent and cent 15 cigar elgar a 0 further cut In the taxes on cigars ret retail retail- retailing retailIng ll- ll Ing at these prices As for the tho clause In the present low law permitting publication of or the amount of or Income taxes paid there thore will vill be a fight against elimInation In the senate but m majority senti- senti sentiment sentiment sentiment ment apparently favors doing away awa with this publicity provision as the house bill provided |