The Bill Is Signed

The tax reduction bill of 1926 last week ceased to exist. Instead there came into existence the "Revenue Act of 1926", for the tax reduction bill in the form in which it had been issued by the Joint Conference Committee (TIME, March 1) was transformed into a law without alterations.

There were three brief steps in making the bill into an act of Congress. Mr. Green, the Chairman of the Ways and Means Committee, told the House: "I came back today with the best bill I could get." There was a small minority in opposition which wanted to recommit* the bill because a retroactive reduction was made in last year's estate taxes, but they were prevented from getting their motion before the House because only one motion to recommit is allowed and a Florida member beat them to it with a motion to recommit to have estate taxes entirely abolished. The House as a whole had no sympathy with the proposal to wipe out estate taxes, and voted down the motion with a chorus of ayes. This little maneuver was undoubtedly planned in advance. In short order the bill came to a final vote, of 354 to 28. The opposition was made up of 16 Republicans, mostly Progressives, eight Democrats, three Farmer-Laborites and a Socialist.

Next day the Senate took action. By unanimous consent the rules were laid aside so that the bill could be taken up immediately. Senator Smoot, Chairman of the Finance Committee, like Mr. Green in the House, explained that it was the best bill that could be got. Senator Fletcher of Florida attacked the bill because estate taxes had been restored in conference. And Senator Neely of West Virginia declared it was a millionaire's bill, and wanted the taxes on admissions and on automobiles entirely stricken out. He moved to recommit the bill. Senator Robinson of Arkansas, the Democratic leader, made a point of order, that the bill could not be recommitted because the House in passing it had discharged the joint conference committee, in short there was no committee to which the bill could be recommitted. Vice President Dawes ruled the point well taken. Mr. Neely appealed to the Senate from the Chair's decision, but the Vice President was upheld 62 to 8. Soon came the final vote, 61 to 10 for passage. Five Progressive Republicans, four Democrats and the Farmer-Labor Party (Mr. Shipstead) were alone in opposition.

The bill was engrossed, signed by Speaker Longworth, signed by Vice President Dawes, sent to the White House.

There it was signed by the President while the leaders who ushered the bill through Congress stood genially by, and Senator Simmons of North Carolina, who delayed the proceedings 20 minutes by coming late, rushed around cigar in hand, at one time almost burning the back of the President's neck, at another the hand of Senator Smoot.

So it was done and Senator Smoot and Representative Green carried off the two pens used by the President in signing, and the Treasury set about estimating the amount of income it could expect in the next few years. In spite of the large reduction in taxes the Treasury hopes for a surplus of $67,000,000 for the fiscal year (1926) ending next June and for a surplus of $11,000,000 at the end of the following fiscal year in June 1927.

*Send back to committee for amendment or for other purposes.