Thank you for visiting SNEWPapers!
Sign up free
Story
May 10, 1947
The Wilmington Morning Star
Wilmington, New Hanover County, North Carolina
What is this article about?
The Senate Finance Committee voted 8-5 to recommend a $4 billion annual income tax cut effective July 1, announced by Chairman Millikin. Key changes include a July 1 start date instead of retroactive to January 1, and adjusted reduction brackets from the House bill.
Clipping
OCR Quality
98%
Excellent
Full Text
Big Tax Cut Suggested
Senate Finance Committee Votes Income Slash Of Four Millions Yearly
WASHINGTON, May 9. -(P)- An income tax cut of $4,000,000,000 a year, effective July 1, was recommended today by the Senate Finance committee.
Chairman Millikin (R.-Colo.) announced the vote was 8 to 5.
The principal change from the measure passed by the House is the effective date - July 1. The House had voted to make the reduction retroactive to January 1.
The Senate committee inserted a new reduction bracket giving persons with net incomes between $79,728 and $302,396 a tax cut of 15 per cent rather than 20 per cent as provided in the House bill. This scale of reductions is set up in the measure:
30 Per Cent Cut
30 per cent for persons with net incomes (after exemptions and deductions) of $1,000 or less.
A flat $67 "notch" reduction for net incomes between $1,000 and $1,396.
20 per cent for incomes from $1,396 to $79,728.
15 per cent for incomes from $79,728 to $302,396.
10.5 per cent on all incomes above $302,396.
A man with a net income of $100,000 would get the benefit of the 20 per cent reduction on the first $79,728 of his income, and 15 per cent off on the balance. A man with income above $302,396 would get the benefit of a 20 per cent cut on his first $79,728 and a 15 per cent cut on income between that point and $302,396. The 10.5 rate cut would apply only to taxes on income above $302,396. No one would get the benefit of the 30 per cent cut on any part of his income unless he is in the bracket of those with net incomes of $1,000 or less.
Millikin told reporters he believes the bill can be reported to the Senate by next Wednesday.
Estimates Differ
The House estimated its bill would cut the individual income tax load $3,800,000,000. The Senate set its estimate of the total reductions slightly higher.
Reporters learned from committee members that Senator George (D.-Ga.) had voted with the seven Republicans on the committee consideration of the bill.
Senate Finance Committee Votes Income Slash Of Four Millions Yearly
WASHINGTON, May 9. -(P)- An income tax cut of $4,000,000,000 a year, effective July 1, was recommended today by the Senate Finance committee.
Chairman Millikin (R.-Colo.) announced the vote was 8 to 5.
The principal change from the measure passed by the House is the effective date - July 1. The House had voted to make the reduction retroactive to January 1.
The Senate committee inserted a new reduction bracket giving persons with net incomes between $79,728 and $302,396 a tax cut of 15 per cent rather than 20 per cent as provided in the House bill. This scale of reductions is set up in the measure:
30 Per Cent Cut
30 per cent for persons with net incomes (after exemptions and deductions) of $1,000 or less.
A flat $67 "notch" reduction for net incomes between $1,000 and $1,396.
20 per cent for incomes from $1,396 to $79,728.
15 per cent for incomes from $79,728 to $302,396.
10.5 per cent on all incomes above $302,396.
A man with a net income of $100,000 would get the benefit of the 20 per cent reduction on the first $79,728 of his income, and 15 per cent off on the balance. A man with income above $302,396 would get the benefit of a 20 per cent cut on his first $79,728 and a 15 per cent cut on income between that point and $302,396. The 10.5 rate cut would apply only to taxes on income above $302,396. No one would get the benefit of the 30 per cent cut on any part of his income unless he is in the bracket of those with net incomes of $1,000 or less.
Millikin told reporters he believes the bill can be reported to the Senate by next Wednesday.
Estimates Differ
The House estimated its bill would cut the individual income tax load $3,800,000,000. The Senate set its estimate of the total reductions slightly higher.
Reporters learned from committee members that Senator George (D.-Ga.) had voted with the seven Republicans on the committee consideration of the bill.
What sub-type of article is it?
Historical Event
What keywords are associated?
Tax Cut
Senate Finance Committee
Income Tax
Reduction Brackets
Millikin
George
What entities or persons were involved?
Millikin
George
Where did it happen?
Washington
Story Details
Key Persons
Millikin
George
Location
Washington
Event Date
May 9
Story Details
Senate Finance Committee recommends $4,000,000,000 annual income tax cut effective July 1, voted 8-5 by Chairman Millikin. Differs from House bill in effective date and reduction brackets: 30% for incomes <=$1,000, $67 flat for $1,000-$1,396, 20% for $1,396-$79,728, 15% for $79,728-$302,396, 10.5% above $302,396.