The Washington times., 1924-01-21
c. D. P. CHIEFS
UNEASY OVER
TAX FIGHT
Democrats Confident As Real
Battle Starts in House Be-
hind Closed Doors.
BY GEORGE II. HOLMES,
International News Service.

International News Service.
The tax reduction fight got down
to the hammer-and-tongs stage to-
day.
Behind closed doors, the Ways
and Means Committee of the House
started writing the actual figures
of income tax reduction. Its mem
bers have but three weeks to patch
up their differences and bring out
bill-a monumental task consid
ering the variety of plans and fig
ures that have to be considered.
For the first time in years all
the members of the committee par
ticipated in the actual work of writ
ing the bill, instead of merely the
members of the majority party
This viii permit most of the bat
Ting to be done within the commit
tee itself, and the sounds Of con
flict to be kept behind the closed
and barred doors of the committee
room.
Under White House Orders.
Under orders from the White
House, the Republicans went into
today's meeting resolved to hew as
closely as possible to the rate
structure framed by Secretary OF
the Treasury Mellon. They will
fight for the Mellon plan tooth
and nail, even though cognizant OF
the fact that the program, as writ
ten by the Treasurer, cannot be
passed.
The Republicans were nervous
and apprehensive over the situation
largely because they are uncertain
of their own strength. The Demo
Gratis and Insurgents outnumber
them and can outvote them at any
time by combining as they have
done in numerous instances already
this session.
In This situation, Republican lead
ers frankly admitted they intend tc
drive as hard a bargain as pos
sible with the coalition, stick as
closely as possible to the principles
embodied in the Mellon plan, and
bring out a tax reduction bill that
while it may not bear a Republican
label, will nevertheless represent q
Majority of Congressional opinion
and afford relief to the hard-presseo
citizen.
Democrats Confident.
In contrast to the Republican
apprehension, the Democrats were
confident and apparently happy
over the outlook. Secretary Mellon's
description of their substitute tax
reduction program as political
and nothing else" apparently did
not weight heavily on Democratic
minds nor change in the slightest
their determination to force their
rates through with the aid OF the
insurgents in lieu of the Mellon
rates.
On one thing both Republicans
and Democrats were agreed today
that the tax bill which finally
emerges from the committee three
weeks hence will represent a com
promise between the Mellon plan
and the Democratic plan as written
by Congressman Garner Of Texas.
Neither side can command Suf'
ficient votes, nor crack the whip
of party discipline to the extent
of putting one program through
to the exclusion of the other. Con
gresham Longworth (RepD of Ohio
the majority leader, frankly adj
mitted that compromise is in
evitable. And he has so informed
President Coolidge.
The point on which the opposing
factions will lock horns tightest i:
the surtax rate-proposed by Sec
maximum on all incomes of $100,00(
or more and by Congressman Gar
ner to be Al per cent on incomes
of $4,000 or more. The difference
between 25 per cent and "A pei
cent represents millions upon mil
lions of dollars to the wealthy O.
the nation.
The belief prevailed about the
Capitol today that the rate. wher
finally fixed, will be nearer the
Democratic rate of "A per CEN
than the Mellon plan of 26 per cent
For the Republican Insurgents who
hold the balance Of power are ir
favor of a surtax rate of so pei
cent or higher. Unable to enact
their own ideas, the Insurgents will
be forced to support the program
that more nearly approaches theil
own, and that is the Garner plan.
Veto Is Feared.
The question Of whether President
Coolidge will veto a compromise ta2
bill that strays too far from the
Mellon program was uppermost ir
the minds Of both Democrats anG
Republicans when they met today
The Democrats contemplate the
situation with satisfaction, but tt
the Republicans it is a source Of
real political worry.
With the whole country in arms
for tax reduction, the vision Of g
Republican President ,vetoing q tai
bill in the midst of political cam
paign is enough to give them po
litical shivers of the most acute