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[[newspaper clipping]]

OIL DEPLETION 22%

Compromise Appears Designed to Avoid Veto by Nixon

By EILEEN SHANAHAN
Special to The New York Times

WASHINGTON, Dec. 19-A Senate-House conference committee approved today a compromise version of the tax bill that would provide tax cuts for everyone, increase Social Security benefits by 15 percent and make scores of changes in special provisions of the tax law, including a reduction in the oil depletion allowance to 22 per cent.

The measure would provide tax relief by increasing the personal exemption and the standard deduction, by providing a special tax-free allowance for low' income individuals and by taxing single persons at new rates lower than the present ones.

It would provide no other reductions in tax rates, except for a special new maximum tax rate on "earned income," principally salaries and professional fees. None of the provisions would affect 1969 tax returns, which are due April 15, 1970. 

Increase in Exemptions 

The personal exemption, now $600, would rise to $650 on July 1, 1970, remain at that level through 1971, and then increase to $700 for 1972 and to $750 for 1973.

The reform provisions of the bill include a wholly new concept in the tax law, a "minimum tax" aimed at prohibiting most individuals or corporations from amassing large quantities of income completely free of Federal tax.

The present tax-exempt interest on the bonds of state and local governments would remain untouched by this and all other provisions of the bill, however, so that persons whose sole income was from these bonds could remain completely exempt from Federal tax. 

No Indication by Nixon

There was no immediate indication as to whether or not President Nixon would sign the bill, although it appeared to have been tailored to escape a veto.

Its provisions, except for the increase in Social Security payments, would increase rather than reduce the Government's tax collections in 1970 and 1971, the years that the Administration regards as crucial in the battle against inflation.

On the other hand, the bill does contain the 15 per cent increase in Social Secuirty

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