The Washington times., 1924-02-14
TAX REDUCTION
STARTED IN
HOUSE
5.as
Bill Is Mellon Plan With
!. Slash in Income Rates.
Vote Next Week.

Tax reduction was started on its
hazardous way through the House
today, offered as valentine to all
the people by the: Republican Ad'
ninistration.
AS presented It is the Mellon
plans with normal income tax rates
reduced from and s, per cent re.
Spectively to and 8 per cent and
the maximum surtaxes reduced from
so TO rs per cent. the House Ways
and Means Committee having
thrown in as a present a 26 per
cent reduction on income taxes for
1923 which become payable March Is.
What form the legislation will
have taken when it passes the
House some two weeks from now
ts q matter of grave concern to the
Republican leaders. t..
/ The fight against the surtax re-
kduction proposed is bitter, and there
Cis q, demand for sharper cut in
the normal rates. House Repub-
licans are divided over the legisla-
ton, some of the insurgent group,
led by Frear, Wisconsin, opposing
the 25 per cent maximum as too
low
Democrats Ara United.
The Democrats are united almost
In demanding a maximum rate Of
"A per cent on incomes of sos, 900
or more. ~ ,s 81.
At a binding caucus attended by
,168 all but eight pledged themselves
to stand for this maximum.
The eight who opposed claimed
exemption from the caucus decision
because of instructions from con-
stituencies.
The Democratic membership Of
the House Is 210, but 1t can not be
forecast how many will be present
to vote on. the income tax schedules.
In the insurgent group there are
/ twenty-five Republicans. Most of
these have stood with Frear through
the committee discussion Of the
tax bill.
When pressed by regular Repnb-
lican leaders for compromise on the
strtax rate they finally assented to
40 per cent. #..
After this compromise had been
ignored, the insurgents determined
to fight.
It is not known how many Of
them will stand with the Democrats
in their fight for the "A per cent
maximum. A coalition between the
insurgents and the Democrats
would defeat the committee bill
which carries the Mellon plan.
Leaders Reach Agreement.
Republican and Democratic lead
ers have reached an agreement to
expedite House action on the bill,
but It will require unanimous con-
sent in the House to carry It
through.
= 1t is proposed to debate the Iegis.
lation generally until Monday 4
D. m, when the bill will be read
down, to the income tax section.
These sections will be read Tuesday
and the Democratic and Frear sub
stitlites will be offered In the order
named.
There will be three days of debate
on this feature Of the bill before
votes are taken on the Frear, then
the Democratic substitute. On the
result of these votes hangs the
fate Of the Mellon plan.
ea Opposed to Board.
4 There will be little delay in push
Ing the bill through the House
with the income tax sections dis
posed of because little difference of
opinion exists concerning most OF
the other sections Of the bill.
An attempt will be made to re.
duce or remove the taxes on auto
mobile tires and parts, and q fight
will be put up against creation OF
the Board Of Tax Appeals which Is
to have from seven to twenty-eight
members at salaries of $4,000 a
year each. @
Most other provisions Of the bill
will have united Republican and
Democratic support.