Tax Cut

What Mr. Mellon said about tax reduction, and what the House said, and what Mr. Mellon said next, and what the Senate then said, and what the Senate and House disagreed on, interested citizens less than what the Senate and House finally agreed on last week. Mr. Mellon's first "limit of safety," announced last autumn, was reduction of $225,000,000. The House promptly voted a reduction of $289,000,000. The Senate waited to see the April income tax returns. When these were known, Mr. Mellon reduced his limit to $201,000,000. The Senate then voted a reduction of some $205,000,000. The Revenue Act of 1928 finally called for a cut of $222,495,000-- a little less than the original Mellon limit. Changes were as follows: REDUCTIONS Reducing the 13 1/2% tax on corporate incomes, to 12% $123,450,000* Increasing the $2,000 exemption on corporate incomes, to $3,000 12,000,000 Repeal of the 3% automobile sales tax 66,000,000 Raising from $20,000 to $30,000 that part of an in dividual's earned income which is credited with a 25% 4,500,000 Increasing the 75-cent exemption on admission tickets to $3 15,000,000 Increasing the $10 exemption on club dues to $25 1,000,000 Repeal of the cereal bever age tax 185,000 Reduction of the wine tax. . 1,000,000 Repealing the tax on foreign-built yachts 10,000 Reducing the $6 tax on retail druggists who sell narcotics, to $3. 150,000 Total reductions $225,295,000 INCREASES Withholding at source taxes due from nonresident stockholders $ 2,000,000 A new 25% tax on prize fight tickets of $5 or more 750,000 A new duty on foreign-built yachts 50,000 Total increases $2,800,000 Net tax reduction $222,495,000 Until near the close of the House-Senate conferences, it appeared that Senators Norris, Couzens, et al. might revive in come tax publicity by a provision making tax returns public documents, though not accessible in every collector's office. But the Senate voted for privacy.

* Figures in this column are, of course, only "estimated."