Progress

"H. R. 1," the tax bill of 1926 having been constructed by the Ways and Means Committee of the House and passed by the latter body practically without alteration (TIME, Nov. 23, 30), last week passed through its third stage the total tax reduction from $325,736,000 (as proposed in the bill as it came from the House) to $500,000,000, this to be done by a large reduction in the rate at which the public debt is retired.

2) Decrease in the surtax rates in certain brackets (for incomes between $22,000 and $100,000)issions and dues.

In acting on this proposal the committee by a partisan vote turned its thumbs down on the first. The second was granted but with smaller reductions than the Democrats had asked. The capital stock tax (of $1 on $1,000) was stricken out, but by way of substitute the majority increased the flat tax on corporate earnings from 12era, leaving the tax on other entertainments at 10% on tickets costing more than 50 Taxes on foreign-built yachts were made twice as high as those imposed by the House (in order to encourage native yacht builders).

By and large, all the changes in the bill tended to increase the total tax reduction proposed by the House from $325,736,000 to $362-500,000.

The important result of the compromises in the committee was that the Democrats agreed not to oppose the bill as a body. So on the floor it will be "non-partisan," with support from both parties and subject only to individual attack. That factor should greatly hasten its passage.