Evening star., 1924-01-13
SPLIT ON TAX PLAN
DIVIDES REPUBLICAN
LEADERS IN HOUSE
CONTINUED from First Page.l

personality had nothing to do with the
situation.
The republican leader declined to
predict what surtax maximum finally
would be agreed upon by the republi-
cans. although he expressed conf
dence that the faction insisting on
modification of the Treasury schedule
! would show more strength than the
group opposed to material changes.
We ought to reduce high sur
taxes" said Mr.. Longworth, ito a
, point where the temptation would
not be Irresistible to a rich man to
put all his income in tax-exempt
ecurities. Whether the Mellon plan
proposes the right maximum, l don't
know. 1t Is apparent. however. that
thia Congress will not put rates low
enough to bring about the result de-
sired by the administration in all
cases"
Mr. Longworth said he wss certain
President Coolidge would not veto a
bill which carried higher surtax rates
! than those proposed by Mr.. Mellon.
This observation was made in the
face Of announcements at the White
House that the President was op-
posed to any changes in principle.
There were indications that repub-
lican leaders, cropping about for a
surtax maximum which would COM
mand the support of a majority of
the House, might suggest So per
cent, as against the 25 per cent limit
on incomes in excess of 100000 pro-
posed in the Mellon bill and the
~ per cent maximum on incomes ex-
ceeding $4,000. favored by the demo-
Gratis. The present maximum is so
per cent in incomes of 100000 or
more.
Mr.. Green declined to give his
views on the surtax schedule, al
though he is known to believe that
the Mellon maximum would not have
the support of enough republicans to
insure it's adoption. and is inclined
to increase 1t considerably above
the Treasury figure.
Seek to Block Fight.
AS to the likelihood of compromise.
the ways and means committee
chairman said that all important
legislation was the result of adjust
ments, with the tax bill no exception.
From the start. he said, the COM
bill," and it was indicated that efforts
would be made to make changes for
the purpose Of meeting the demands
from various groups in the republi-
can party in committee rather than
permit an inter-party fight to de-
velop on the floor.
Members of the ways and means
committee said yesterday that while
10 committee discussion had taken
place recently on the soldiers bonus
question there had been considerable
talk of modifying the Mckenzie bill
in an effort to reduce the cash out
lay, and permit greater tax reduction.
The Mckenzie draft is substantially
the same as the bonus bill vetoed by
President Harding. Some House
members, it was said. have been urg-
!, ing that its options be restricted and
that the borrowing features be elm
mated.
| Mr.. Green said he personally favored
laying more stress on the pald-up
Insurance features of the bill, and
iannounced that he would have some
we'll as on other sections of the
Mr.. Green said he believed there
were six members Of the ways and
means committee opposed to the
bonus. which under the program of
| the republicans will be taken up by
1.-THE committee after the tax bill Is
reported. In his statement OF taxa
Ition yesterday, Mr.. Tilson- said ne
was one of a half dozen committee {,
members who believe a bonus Dill
should not be enacted.
Another member OF the committee,
Representative Frear, republican,
| Wisconsin,, made public last night
another letter to secretary mellon on
! Again advocating passage OF his bill
! which seeks to tax securities now
escaping taxation through the Six
teenth amendment. Mr.. Frear urged
| that this method OF approaching the
| Supreme Court for a decision as to
Its constitutionality.
| Wants Law Tested.
| ..If you are opposed to the entire
| policy proposed in my bill which is
| designed to reach $4,000, 100000 or
| more in outstanding municipal and
! state securities" said Mr.. Frears 8
for your hoped for suppot but in the
! interest Of bringing to the govern
| ment Treasury, largely increased
| revenues and inforcing existing law
! irrespective of your own and my per
| sonal preferences and prejudice In
doubt exists as to the law, and as
{ stated 1t does seem to exist in the
| mind Of many able lawyers. the ques-
| tion should be squarely tested.
"For reasons previously set forth
| It is highly probable that under the
terms OF my bill the court would not
80 divide as to set aside the law and
! IL not, the government would be the
immediate gamer In greatly 1n>