Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-02-23
EXCESSPROFIT
TAXDEVELOPS
HARDCONTEST
Proposition Submitted by
Representative Frear is
Arousing Antagonism of
Regular Republicans

WASHINGTON. Feb. 2.,.-A pro
paSai 90 reimpose the excess profits tax
developed stubborn contest today in
the house.
The proposition offered hy Repre-
sentative Ercar. republican. inSmrgsni
81 Wisconsin. ~ m amendment to fhe
revenue bill. arrird rates W ~ per cent
on The first 20 per cent Of the profits
over allowed drhnriiun~ and fifty per
cent ia profits above that. The former
law had rates If 20 and 40 per cent.
Tie SAM. exemption VI $1,000 plus an
eight per eni profit would b. allowed.
Mr.. Frcar argued such tax would
permit reduction III thr corporation
normal tax from - Il per cent 10 10
TER cent ur less and hr was supported
~ Representative DidfieId democrat
Arkansas Republican leaders vigorous
IN opposed the amendment.
Previously an amendment offered rs
Representative Black democrat Texas
~ limit th,. period IN which additional
income tax assessments may be levied
I'M the government ~ three years instead
81 four. was defeated. llI 10 20.
Secretary Mellon. IN a letter today to
Representative III t;uardia. republican,
New York. reiterated that no bonus for
treasury surplus under the Mellon plan
the Garner plan. or The ways and means
committee recommendation.
The secretary said that under the
treasury plan the loss in revenue would
~ $..Z2 guuuu0 under the t;arncr plan.
$d.O.0l7 900 and under the recommenda-
tiunS III the Ways and means committee
<;ii. IIo.On.
Democrats and republican insurgents
again combined to make up the major
ity, though Representative Garner, Tex
as. in charge ~ the democrats light on
the bill. declared he would not sup
port the amendment itself
After long debate the house voted
li3 10 Ill. that consideration Of the ex
cess profits amendment was In order.
Further changes w the revenue bill
sought hy democrats and supported by
some repuhii an leaders again slowed Mp
its progress III the house to-day with the
spirited debate thar has marked IT, con
~iicratium continuing.
~ result af delays encountered
yesterday little hope was held IN Chair
man Green ~ the ways and means com
miiier. in charge of the measure for tho
rrpuhli ans. that " could hr brought iip
for final vote Tuesday. a had been
planned /, was decided. however fo
hold ihe measure before the house with
onf interruption il vote appears pos's-
ihlr little later iH fhr week
Considerable time WAS spent yeStcr-
dan On an additional amendment. which
Was approved IN vote wv democrats
and republican Insurgents. 10 open tax
returns ~ special congressional com
mitices and The house ~ ways and
means aud the senate finance COM
mittrrS. Another amendment adopted
would make the corporation tax returns
available AZ state officers. upon request
~ the governor. regardless VI whether
the state imposes an income tax aS the
law NOW requires far al n inspection.
Representative l.ongworth republican
leader. continued optimistic that def
mite break IN the ranks nf the seven
teen republicans who voted for the
Garner ni nmc rates had developed a.
result ~ this new compromise offer. but
both republican inSurgenf and demo-
cratic SpukeSmrn maintained they would
hold "a the Garner rates on final vote
on the measure.