Evening star., 1924-02-28

Continued from First Page)
in excess Of 100000. instead OF o5
per cent on incomes over $10o,0 as
recommended by Secretary Mellon.
Democratic maximum surtax rates
would be ~ per cent on incomes over
$4,000.
Retention Of the brackets in the
present law for the surtax rates, Rep
gent member of the ways and means
committee. said today. made the dis
tribution of proposed reductions more
"oiI all incomes than under the Mellon
brackets" which he said favored dis.
tinctly higher incomes. +
Representative Nelson, wiscon-
sin. leader OF the insurgent group,
said the insurgents were anxious 60
work out a compromise with the or
ganization republicans on a measure
the democratic schedule, on "a fair
basis" so that soldiers bonus
might more easily be met and party
solidarity retained. He also said
increases in the estate taxes and in
PRODUCTION Of a gift tax would raise
more revenue than had been an
ticipated.
No Cut In senate Seen.
Secretary Mellon was informed yes
terday at a meeting with republican
leaders OF the Senate and House that
no reductions In the surtaxes finally
adopted by the House could be ex-
pected in the Senate. Chairman
Smoot OF the Senate finance commit
tee. said. however. that an effort
would be made to get early action on
tho measure when il reaches that
chamber. In view OF the exhaustive
hearings conducted BY the House
an effort will be made to limit hear
ings by the Senate committee.
Those present at the 6enRte-House
conference included Chairman Smeot
OF the Senate finance committee: Sen.
Pennsylvania, members OF the conf
rnittee; Speaker Gillett Of the House,
Representative Longworth. and mem
bers of the House republican steering
committee.
While negotiations were going on
between the steering committee and
insurgent leaders runnors threaten
ing new break in party ranks were
heard. Assertions made on the moor
by Representatives Mills, New York,
and Treadway, Massachusetts,. repub-
lican members OF the ways and means
committee. that they would vote
against the measure as 1t now stood
were followed by declarations OF
would not even support eompretniss
on the income sch hedules. The strength
of this movement had not been de-
veloped, but Representative Long
party would vote for the compromise.
Explains Gift Ta1.
The fight to ditch the Garner rates
will hinge on the vote on the pre-
vious question, which will be made
Immediately the bill is reported for
final action. If this is defeated, the
measure again will be open for
amendment.
Chairman Green OF the ways and
means committee issued statement
explaining the increase IN ihhefftanee
taxes and the imposition OF gift
tax. while Representative Mills put
out q statement attacking every
and declaring in It's present form it
"should not pass the House."
Explaining the gift tax. which vas
approved on his motion. Mr.. Green
said "its effect on large estates wifi
extent in direct revenues. but fndi-
inheritance taxes will be largely
augmented. Under existing law
owners Of large estates can. give
escape a portion Of the income sur
taxes and all Of the estate tax on
the amount OF the gift"
The provision in the amendment
increasing the estate tax rates, which
provides q 25 per cent credit for
estate taxes paid states, Mr.. Green
said, represents the greatest reform
and the most important change In our
revenue system since the adoption of
the progressive income and estate
taxes" It's practical effect, he de-
clared. would be to make the total
amount Of the Inheritance tax to be
paid under the state and federal pro-
visions the same In eAch state"
Sees Big Deficit.
Mr.. Mills said the revenue bill re-
ported BY tho ways and means com.
mittee ~at no point increased taxes"
1.-The present hasti1y-thfown-t to-
se.her, isuprovised measure" hs as
serted, follows no particular plan.
It begins BY making = greater taa
reduction than The Treasury can bsaf.
and then, by the imposition Of new
taxes ana the increase OF old. seeks
o. ~a-lk -f