The Birmingham age-herald., 1924-02-22
DEMOCRATS JAM 5. ON BRAKES IN
 TAX REFOR MS Refuse To Tax Undistrib-
 uted Profits Of
 Corporations MEASURE INTRODUCED BY INSURGENT REPUBLICANS Garrett Says It Is Unsound And 4 Would Give Ground For < Tax Bill Veto

WASHINGTON, Feb. 21.-Demo- crats jammed on the brakes in the revision of the revenue bill today after joining republican insurgents in gain ing. in some amendments and refused to support an amendment offered by this group proposing a tax on undis- tributed profits of corporations.
 In opposing this amendment, Rep resentatives Garrett of Tennessee and Garner, Texas, the democratic leaders in sthe tax fight, declared it was "un- sound" and warned their party that it must not 50 change the bill, already carrying the democratic income rate schedule, that ground would be given for a presidential vote.
 The coalition just previously had overruled a decision of the chair that the amendment was not in order by a vote, 164 to 150.
 Little Progress On Bills
 With debate on the amendment occuping three hours, little progress was made with the ill, today, although Chairman Green of the ways and means committee in, charge of the measure, predicted later q vote on passage would be possible by next Tuesday. An agreement was reached ner that no vote would be taken be- fore that date. Consideration of the measure will continue tomorrow all though a legal holiday.
 A new compromise on the income rate schedules developed in negotia- tions during the day between repub- lican organization leaders, who are determined to upset the democratic rates when the bill is up for passage.i and some of the 17 republicans who supported the Garner income tax amendment.
 Longworth Suggests Compromise
 Representative Longworth, the re- publican leader, said he would be will ing to cut the normal rate on incomes below $4,OOO from 3 per cent as rec commended by Secretary Mellon to 2 per cent if the 6 per cent normal tax on incomes above that amount, the treasury proposal, were retained. The compromise also includes the recent of- fer of organization republicans to raise the maximum. ,surtax from the 25 per cent rate proposed by MT. Mellon to 375a per cent. Such a schedule, Mir. Longworth said, would be acceptable to several of the insurgents.
 The vote on the Garner plan was 222 to 198, with eleven republicans ab- sent. A ma jority must be gained on several parliamentary votes by the re- publicans 10 make possible the oFer- EthS5w of Ahe Garner rates After the bill conies up for finaf vote. IT
 An amendment proposed by Chair man Green and supported by Represen- statives Garner and Oldfield, democrats, Arkansas, members of the ways and means committee, which framed the bill, proposing to make profits on stocks redeemed by corporations in liquidation proceedings subject to reg ular income rates rather than to the 12h per cent capital assets tax, was adopted in the face of opposition by Representatives Mills of New York, and Chindblom of Illinois, republican members of the committee.
 Mir. Green argued the change was necessary to close loophole whereby large amounts of such profits would escape the sur taxes and insisted the present law was intended to so read. The section amended had been revised in committee.
 Numerous amendments were offered to the section providing exemptions of corporations.