Evening star., 1924-02-15
INCOME TAX ISSUE
COMES UP TUESDAY
House to Act on Major Con.
troversy in Revenue Meas
ure Next Week.

The House agrees today to take up
the revenue bill. major point of con-
troversy. with amendments in order.
Faced with the probable loss of the
| insurgent group and by solid demo-
cratic opposition in the income tax
rate fight. republican leaders called
a conference of their party for this
afternoon at which an attempt will be
surtax rate which will unite the par
ty into a majority unity
Representative Longworth of Ohio,
republican floor leader, declared yes
terday a poll of the republican dele
cations conducted by Representative
Begg, Ohio. had shown 20S republic
cans. ten less than a majority of the
House. would agree to a maximum
surtax of 35 per cent.
VIII Not Compromise.
When the bill was in committee the
republican insurgent group agreed to
a reduction in the maximum surtax
rate to 40 per cent If the normal
rates were cut in half They con-
troled seventeen votes in the House
organization fight. Leaders of the
group have declared, however, they
will not again agree to a compromise
with the regular republicans
Leaders on both sides predicted that
under the arrangement completion of
the measure within two weeks will
be possible. Two days probably will
be taken up by the income tax rate
section.
The agreement specifies that the
n
will be in order as one amendment
and that then the proposal of Rep
!resentative Frear, republican, Wiscon-
sin, will be in order as substitute
amendment.
These amendments must include the
entire income rate schedule, normal
and Surtaxes and personal exemption.
The democratic plan provides for a
A per cent maximum surtax, SO per
cent reduction in normal taxes and
scheme is the same except it would
leave the present maximum surtax of
SO per cent unchanged. The bill as
reported carries the Mellon income
rate schedule. providing for 25 per
cent reduction In normal taxes, q 25
per cent maximum surtax rate and
no change in exemptions.
Debate Continues.
General debate on the bill, which
will be concluded Monday afternoon
at pm, continued today, arguments
centering on the income tax section.
When the revenue bill Is out of
the way, majority leaders plan to
take UP the bill authorizing the leas-
ing of the governments Muscle
Shoals projects to Henry Ford, which
already has been reported by the
military affairs committee.
While the debate on the revenue
bill centered chiefly today on the in
come tax schedules which provide for
q 25 per cent cut In normal income
taxes and a reduction of surtaxes to
a maximum of 25 per cent, leaders
maneuvered to line up their forces
for the vote expected next week, and
the republicans continued optimistic
that they could muster enough votes
to keep the surtax rate within 35 per
cent in the face of the united demo-
crat stand for a maximum of A per
cent and the declaration by the re-
publican insurgents for no reduction
in the surtaxes.
The debate, under the agreement
reached yesterday was equally di-
vided between the majority and mi
nority. with Chairman Green of the
committee in charge of the allot-
ments Of time for the republican
speakers and Representative Garner,
Texas. ranking democrat on the COM
mittee. directing the democrats.