Evening star., 1924-02-14
TAX CUT MEASURE
TAKEN UP IN HOUSE
General Debate to End Mon
day-Insurgents Likely to
Join Democrats.

Tho revenue bill carrying a COM
plcte revision of the federal tax rates
was taken up in the House today un-
der an agreement to close general
debate by Monday at pm. after
which the bill will be read and open
to amendment.
Opposition to tho major provisions
Of the bill. including the income tax
rates sections, which already COM
prises the 207 democrats as a unit,
as result of a party caucus vote
yesterday. was strengthened today
by members in the rnks Of the in
surgent epublicn COUP.
After a meeting of the insurgents.
leaders expressed the opinion their
organization would vote for the DEM
ocratic tax reduction plan, should
their own proposal to be presented by
Representative Frear, Wisconsin, Cor
SO per cent reduction in the normal
rates and no change in the surtaX
rates, be rejected.
Would Tip Balance.
The insurgent organization cast
seventeen votes against Speaker Gill
and this number of votes combined
with the democratic unit would give
a majority for the democratic plan.
if all OF the 435 members of the
House were voting.
The democratic income schedule
provides for so per cent reduction
in normal taxes and maximum sur
tax rate of A per cent instead of 25
nj -ff in, ,aI
and maximum SurtaX of % per cent
as proposed by Secretary Mellon and
carried in the bill.
In the general debate on the bill to-
day Chairman Green of the ways and
means committee made the opening
statement, explaining general pro-
visions of the measure. Representa-
tive Garner, ranking democrat on
the committee, presented his party's
views.
Chairman Green confined his re-
marks to technical features of the
measure. presenting only formally the
income tax provision. the surtax rates
of which he has disagreed with.
launched imediately into a discus
sion of the income rates, attacking
as unprecedented and 'humiliating"
the appeal of President Coolidge IN
his speech at New York Tuesday
night ito the people to ask Congress
Representative Mills. republican,
New York. called attention to
Woodrow wilson's direct appeal to
the public in his fight with the SEN
ate over ratification of the treaty of
Versailles
Cost of Exemption.
In connection with the proposal
advanced yesterday by Senator Raj
ston. democrat, Indiana. to exempt
from federal income tax all persons
with incomes Of less than $4,000. Rep
resentative Bacharach, republican,
New Jersey, made public today a
letter from Joseph Mccoy, govern
mene actuary, declaring such exemp-
tions would cost the government
about s240,000,000 in revenue annual
ly This will not take in considera-
tion any cut in the normal or surtaX
rates.
Mr. .Ralston pointed out that the
taxes paid on incomes of less than
$4,000. in 1921 amounted to about s92,-
100. 800.
Mr.. Mccoy made his estimate last
November at the request of Repre-
sentative Bacharach, who was then
considering raising the exemption to
$4,000 for single persons. and $4,000
for married persons. The loss In rev.
enuc, cSI1IudleQ Dy MF. MCCOy IOT
such a scheme, more than equals the
loss he has estimated will result from
cutting the normal tax rate % per
cent, and maximum sur-tax from SO
per cent to 25 per cent, as proposed
by Secretary Mellon, and placed in
the revenue bill by the ways and
means committee.
The democratic caucus yesterday
voted to bind the entire party mem
bership Of 2o7 to support the income
tax rates proposed by Representative
Garner. Texas, as opposed to the
Mellon schedules carried In the bill.
OF 16S democrats at the caucus 164
approved the action to bind members
Rules OF the membership provide
that if two-thirds of the party MEM
bership approves Of such an action
1t will be binding on the entire party
unless a member shows that he had
made pledge to his constituents
prior to election which would be
violated by carrying out the party
edice