The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-02-23
TAX CUTS KILL
BONUS, SAYS
MELLON
Secretary Sticks to Former
Contentious in Reply to
LaGuardia.
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Continued from First Page.)
memorial. The soldier bloc is de-
manding that the House take UP
the bonus legislation next Thursday
or Friday. Advocates OF the bonus
assert the legislation can be passed
by the House with q big majority
in one or two days.
La Guardia Takes Step.
Congressman LaGuardia, insurg-
ent Republican, New York, took
the first step in the movement
for a compromise along new lines.
He wrote Secretary Mellon asking
for Treasury estimates on yields
from 2 and per cent normal
taxes and 20 per cent maximum
surtax. The compromise suggested
by Longworth was and per
cent normal end 371s surtax maxi.
mum. LaGuardia and the other
insurgents voted for the Garner
plan of 2 and per cent normal
and A per cent surtax maximum.
The Secretary was asked to state
the exact needs of the Treasury,
and whether the compromise rates
suggested, together with increased
inheritance taxes and a gift tax
which the insurgents and Demo-
Gratis expect to write into the bill,
would bring in sufficient revenues
to meet Treasury needs and leave
sufficient money to pay q soldiers
bonus as contemplated.
Concerned Over Bonus.
LaGuardia stated there was con.
Germ among advocates Of the bonus
over statements that rates suggested
in the Mellon plan and cuts made
in taxes would not yield revenues
to pay the bonus, and that the rates
in the Garner plan would produce
even a smaller return. The House,
LaGuardia declared, was strongly in
favor Of the bonus and realized that
tax reduction and bonus must be
considered together.
Leaders in the drive for q soldier
bonus are urging House leaders to
push the bonus legislation and let it
follow close after the tax reduction
bill. They want to get 1t before
the Senate as soon as possible,
realizing there win be delay in pass
ing 1t through that body. President
Coolidge has announced opposition
to bonus, and they seek time to
try conclusions with the President
in an effort to override a veto.
House leaders expect to jam
through a deficiency appropriation
bill after final action on the tax re-
duction bill. The Senate is asking
more money to continue its Teapot
Dome oil scandal Investigation and
the appropriation will be carried in
the deficiency bill. 1t has been
stated the Senate committee has
not sufficient money to pay the
railroad fares Of witnesses it has
summoned to Washington. Follow
ing action on this bill the tentative
legislative program called for con.
siderRtion Of the bill authorizing
lease Of Muscle Shoals to Henry
Ford.
Tax Cut Up Again.
The tax reduction bill was taken
up again today in the House with
contests opened over increased in.
herttance taxes and to impose an
excess profits tax similar to that
which existed during the war but
which was repealed at the close Of
the war. The excess profits tax
was urged by Congressman Frear
lRepl Wisconsin, to check pr0fiteer.
ing. 1t had the support OF most
Of the insurgents and many Demo.
Gratis.
Another proposal Of the insur.
gents, that, providing publicity for
income tax returns as public rec.
ords, has been beaten in the House.
1t commanded strong support from
Democrats. The House agreed to
make such returns available to the
House Ways and Means COMMITTEES.
the Senate Finance Committee and
special committees of either House
or Senate having need Of the in.