The Washington times., 1924-02-18
MELLON s
PLAN IS
LOST
Leaders Able to Obtain Only
122 Votes for lt-Home
Sentiment Changed.
By WILLIAM HARD.


cent is the surtax rate which
the Republican leadership of the
House Of Representatives will
try to fix upon the highest in
comes in the revenue bill debate
in the House Of Representatives
today.
The Mellon proposition for
making it twenty-five per cent
has been found officially to have
only 122 votes out Of total Of
435 votes in the House of Repre-
sentatives. Thus. it is lost and
gone.
Had to Go Upward.
The succeeding proposition for
making it S5 per cent is found to
have only 20S votes in the House
Of Representatives out Of 4S5. This
II less than majority.
1t therefore becomes necessary
to go upward. The upward point
fixed as the finishing point by the
Republican leadership in the House
Of Representatives is 371S per cent.
It is hoped and believed by the
Republican leadership that a ma
jority will be secured for 37h per
cent.
The present rate is so per cent.
TO bring this rate down from so
per cent to 37h per cent would
be a reduction of Y.
The present official Republican
plan is to make a reduction OF
0ne-quarter on all income taxes
from the highest to the lowest.
Plans of LOngwOrth.
Nicholas Longworth, floor leader
Of the Republicans in the House
Of Representatives, Is known to be
in favor of this plan. He long ago
abandoned the highest surtax re-
duction contemplated by the or
be authoritatively stated to have
abandoned. the proposed reduction
from a highest surtax of SO per
cent to the highest surtax OF 30
per cent.
He does not think that the re-
duction can go quite so far. In
stead Of going down to 80 per cent
he proposes to go down now only
to 37h per cent.
He proposed, in other words, to
make everything fair and equal by
going downward on the normal
tax on small incomes and on the
aurtax on large incomes in the same
degree.
Mr., Mellon originally proposed 10
reduce the normal tax by margin
of one-quarter, but to reduce the
murtax by a margin of one-haI.
According to Mr.. Melons original
plan the normal tax was to come
down from per cent to per cent
and from per cent per cent
while the highest surtax was to
come down from so per cent to 70
per cent.
This meant that the normal taxes
on the lower incomes would be re-
duced by one-quarter while the top
tax on the top incomes would be
reduced by one-half.
Political circumstances in the
House makes this arrangement i'm
possible. They also today are found
TO make it impossible to reduce the
top surtax as far down as 35
per cent.
This is admitted by Mr. Long
worth and also by Ogden Mills,
member of the House from New
York and a man of large income,
but also a man Of deep and exact
study in taxation matters and in
The subject of the present temper
and opinion of the House.
Agreed As To Proportion.
Mr.. Longworth and Mr.. Mills
agree that the present proper Re
publican policy is one-quarter re.
duction on all income tax rates
from lowest to highest. This is
the proposition on which the Re.
publican leadership will go to the
fight in the House today and to.
morrow.
The Republican leadership hopes
and believes that the one-quarter
proposition will bring a majority to
its support in the House.
1t hopes and believes that this,
proposition can be carried by Re-
publican regular votes and Repub.
lican so-called progressive" or "in.
surgent" votes put together. It's
idea is that here Is a Republican
proposition which can be put
through the House Of Representa-.
tives by a consolidated Republican
Party against the Democrats.
Meanwhile the Democrats are
bound by a caucus determination
among themselves to refuse any
reduction Of the highest surtax
down below a minimum level Of a
rate of forty-four per cent. They
are willing to go down from the
present level Of fifty to a proposed
level of forty-four.
The new official Republican pro.
posed level is thirty-seven and one
half. To that level the Republican
leaders in the House hope to attract
enough Republican votes to make
II the accomplished level in the COM
ing revenue bill as passed. Their
slogan is:
"a reduction Of one-quarter-a
reduction of % per cent-on every
thing. Reduce the normal tax on
the small income by rs per cent or
one-quarter. Reduce the surtax on
the large income by 25 per cent or
Ane-quarter. Make all the reduc-
lions rs per cent or one-quarter."
That Is the Republican official
tax reduction doctrine today.
One-quarter Cut FavOrpS
It is with considerable Jason be-
lieved to have attracted the favor
able attention Of Secretary Of the