The New York Times/1925/12/14/Tax Bill Will Pass with Little Change
TAX BILL WILL PASS WITH LITTLE CHANGE
House Will Begin Today a Discussion of the Provisions in Detail.
AUTO LEVY CUT WILL STAY
American Automobile Association's Plea for Full Repeal is Expected to Be Rejected.
Special to The New York Times.
WASHINGTON, Dec. 13.—With "general oratory" out of the way, the real business of dealing with the new tax reduction bill will begin in the house tomorrow when, under a rule limiting speeches to not more than five minutes, members will discuss the various provisions of the measure.
The bill will be passed by an overwhelming majority and sent to the Senate by the end of the week, this being assured because all except a few Democrat and the insurgents will join the Republicans in supporting it in virtually the same shape. It now assumes, if there are any changes, they will be of comparatively small consequence.
There has been some criticism of the new surtax and estate tax schedules, but no one now believes they will be altered in any particular. The strong opposition to a 20 per cent. surtax when the original "Mellon bill" was presented in 1924 has died out. The House also is convinced that the estate tax schedules must be reduced to a like figure, although it will not sanction any move to repeal the Federal estate taxes, no matter how determined the pressure may be.
Finis Garrett, the Democratic leader, brought up yesterday a point that may cause unexpected debate on one item of the bill, when he declared he could not sanction the granting of life tenure to members of the Board of Tax Appeals. Mr. Garrett's argument that life tenure instead of a specified term would establish a dangerous precedent seemed to impress a considerable number of members of the House.
Amendments will be introduced this week to repeal the remaining 3 per cent. tax on passenger automobiles, but it is declared these will not get far, the manufacturers of cars having told the Ways and Means Committee they would be satisfied if it were agreed to allow the 2 per cent. tax cut to apply to all cars stocked by dealers a the time the reduction became effective.
Complete elimination of all war excise taxes on motor vehicle tires, accessories and parts, instead of the partial relief provided for in the pending revenue bill, is urged by the American Automobile Association. The attitude of the association, representing the interests of 18,000,000 owners of motor vehicles, including trucks and buses, was set forth by Thomas P. Henry, President of the association, in a letter to Chairman Green of the Ways and Means Committee.
Mr. Henry declares there are no Federal taxes that affect a greater number of persons than those on tires, parts, accessories, trucks and passenger automobiles. The first four are eliminated in the bill, while only a 2 per cent. reduction is made in the last. The association, he says, feels that Congress should repeal the entire tax. Stress is laid by Mr. Henry on the growing bus transportation system, and he argues that the passenger auto tax lays a heavy burden on the new system, while taxes on all other methods of transportation have been dropped.