To Conference

In a final burst of speed, working until 11:00 o'clock at night on the last day, the Senate passed the tax reduction bill and it went into joint conference to iron out the differences between the House's idea and the Senate's idea of tax reduction.

Important points of the Dill which the Senate decided on last week:

Tax publicity was abolished after a bitter fight by vote of 49 to 32.

All estate taxes abolished by vote of 49 to 26.

All taxes on admissions abolished by vote of 35 to 34.

All excise taxes on automobile trucks abolished, 54 to 12.

All excise taxes on passenger automobiles abolished, 41 to 21. Tax on alcohol reduced from $2.20 a gallon to $1.10 a gallon; half of the reduction effective at once, all in one year, by vote of 48 to 13.

The abolition of the tax on admissions, trucks and automobiles came in a stormy session with both Senator Smoot, Chairman of the Finance Committee, and Senator Simmons, ranking Democrat, maintaining that the taxes should not be stricken out, that their loss would create a deficit next year.

Senator Norris ejaculated: "What! We have been talking away great millions in revenue and now you say the Government can't afford this little tax cut? We were rich just now. You said the Treasury had lots of money, but when we come to taking the tax off a few tickets to baseball and football games, you remind us that we are awfully poor. . . . But a few minutes ago you told us we were 'lousy' with money. We went into the pockets of Uncle Sam just now and stole all his money, but now you tell us the poor people must put their nickels in his vest pocket."

Vexed, Senator Smoot cried out: "Go ahead and ruin the bill!" Subsequently the group which had been defeated in seeking to prevent reduction in surtaxes, retain estate taxes, retain tax-publicity, etc., broke loose and, with support of not a few regulars, added $100,000,000* to the tax cut in one wild afternoon. Towards evening Mr. Reed of Pennsylvania suggested adjournment: "We should stop now after this excessive storm." And so they waited until the next day when passions had cooled.

Coming out of Committee of the Whole, the Senate voted a second time on several important points. Abolition of the tax on admissions was sustained 40 to 27. The repeal of the estate taxes was upheld^ 40 to 23. The final vote was 58 to 9 in favor of the bill.

So the bill went to joint conference with the prediction among competent observers that it would be remodeled into something very like what it was when the House passed it originally.

A comparison of the chief points of the bill as passed by the House and as passed by the Senate:

HOUSE

Total estimated reduction $327,000,000. P

ersonal exemption for married men of $3,500.

Maximum surtax of 20% on amounts over $100,000.

Tax publicity repealed.

Maximum estate tax of 20% of the tax on state inheritance taxes.

Abolished the gift tax.

Continued the corporate stock tax.

Continued the corporate income tax at 12 1/2%.

Abolished the tax on automobile trucks. Reduced the tax on passenger autos to 3%.

Abolished the tax on admissions for legitimate drama and on all tickets costing 75 cents or less.

SENATE

Total estimated reduction $456,000,000.

The same.

The same, except that some of the middle brackets of the surtax were lowered.

The same.

Abolished all estate taxes and reduced those of 1921 rates.

The same.

Abolished the stock tax.

Increased the corporate income tax to 13 1/2%.

The same.

Abolished tax on passenger autos.

Abolished all admissions and dues taxes.

*Previous to that time, Republicans close to the adminstration had figured the tax cut at about 8350,000,000.

^There were again heated exchanges on this point. Mr. Blease demanded: "How much does the Duke estate profit under this bill?" Mr. Heflin answered, "Mr. Duke has gone to his reward." and Mr. Blease retorted: "I hope that I have been mistaken in Mr. Duke's reward." (See NOTES.)