Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-03-01
c. O.P. INSURGENTS
DESERT DEMOCRATS
IN REVENUE FIGHT

WASHINGTON, Feb. 2S.-Virtual
agreement between Republican or
ganization and insurgent leaders was
reached today on the LongWorth
compromise to replace the Demo-
cratic income rates now in the reve-
nue. bill.
After a conference between leaders
of the two factions, President Cool
idge was told that Republicans of the
house were confident the Democratic
rates would be eliminated in the fl
nal vote on the bill.
Representative Bacharach, New
Jersey; Tilson, Connecticut, and
Mills, New York, Republican mem
bers of the ways and means COM
mittee, and staunch advocates of the
Mellon rates, informed the president
u compromise had been agreed upon,
and would be voted for by practical
ly all Republicans of the house.
The compromise provides for a
flat IS per cent reduction from the
present surtaX rates, with the same
brackets retained.
This would make the maximum
81 12 per cent on incomes in excess
of 100000 in place of A per cent
on incomes in excess Of 1000, as
provided in the Democratic schedule.
Incomes between 100000 and
$4,000 would be taxed at sc per
cent. Under the compromise, the
normal rates would be two per cent
on incomes under $4,000; five per
cent on incomes between $4,000 and
$4,000, and six per cent above that
amount
Resuming consideration of the bill,
the house voted to cut in half the
per cent tax on automobile tires,
accessories and parts.
On motion of Repre- sentative Ru-
hey, Democrat, Missouri, the eight
cent tax on each package of playing
cards was increased to ten cents by
vote of IS to SIS.
Another amendment adopted would
exempt automobile trucks and
wagons with d chassis costing 81 900
or less. Those with chassis costing
more would be taxed at per cent.
An attempt to retore the 3 per
cert tax on chewing gum was re-
iected 1J2 to 129. Representative
Stengel, Democrat, New York, pro-
posed the amendment.
Seventeen insurgents voted with
the Democrats IOr the Garner plan
when it was substituted for thS Mel
lon rates. The vote was 222 to 1856.
The inSur2ent votes, leaders on both
sides say, will swing the decision on
final passage of the bill.
Normal income rates proposed by
the insurgents on which the agree
ment now hinges are per cent on
incomes under $4,000, per cent on
incomes between $4,000 and $8 900,
and per cert above that amount.
Longworth, Ohio, the
Republican leader, has proposed rates
rates of 2 and per cent, with S4,-
900 the dividing line. Democratic
rates in the bill are per cent on
incomes under $4,000, per cent on
incomes between 900 and $4,000,
and s per cent on incomes above that
Representative Nelson, Wisconsin,
leader of the insurgent group, said
the insurgents were anxious TO work
out compromise with the organiza-
ton Republicans on a measure which
would raise more revenue than the
Democratic schedule, on "a fair ba-
sis" so that soldiers bonus might
more easily be met and party solidar-
ity retained. He also said increases
in the estate taxes and introduction
of gift tax would raise more reve-
nue. than had been anticipated.
Secretary Mellon was informed
Yesterday at a meeting with Repub-
i:can leaders Of the senate and house
that no reductions in the surfaces
finally adopted bv the house could
be expected N the senate.