Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-19
INSURGENTS IGNORE
WHITE HOUSE PLEA
FOR UNITY ON TAX
Appeal to Break Deadlock
Fails to Win Support for
Mellon Plan.
TREADWAY TO CONTINUE
FIGHT If RATES BEATEN
Will Move Adoption as Amend
ment to Bill If Defeated Now.
Conferences Unavailing.

An eleventh-hour appeal by the
White House today to House repub-
lican insurgent leaders urging agree
ment with the organization republi-
cans on the Mellon income tax rate
schedule failed to break the dead
lock between the groups
AS the income rates of the revenue
bill were taken up in the House Ie-
publican leaders admitted the vote
would be close, with the democrats
united for the Garner democratic
plan and with the insurgents still
holding out against the Treasury
rates and threatening to vote with
the democrats IL their compromise is
not accepted.
C. Bascom Slemp, secretary to the
President, Informed some members
Of the insurgent group today that
the President was DESTROYS that the
party should stand as a unit against
the democratic tax reduction plan.
This move followed failure OF two
meetings yesterday between the re-
publican organization and insurgent
members to reach an agreement on
compromise, the latter group holding
out for a 40 per cent maximum sur,
tax with so per cent cut in normal
rates while the republicans would go
no higher than 371z per cent on the
surtax and % per cent cut In nor
NAL rates.
REPRESENTATIVE Treadway of Massa-
chusetts. one of the eleven repub-
licans Of the ways anu means colH-
mittee who voted the Mellon income
rates into the bill. served notiee 20 70,
now he would move their ADOPTION
as an amendment after the bill IS
completed. This, he believed, .Wou!d
make II. possible to get record vote
on the Mellon rates.
indicated that If defeated at this tune
on income schedules they would
make a stand when the bill Is re-
ported out for Anal vote.
Will Vote at $3.50.
After considerable debate the
House reached an agreement TO De-
gin voting at $3.50 pm. today on the
Frear and Garner income tax rate
amendments. 1t was planned to put
the Frear substitute 10 q vote first.
Representative Longworth, Ohio
the republican leader, announced tnst
he would offer compromise amenu o5
Garner proposals were rejected. The
Compromise would fix the surtax
maximum at 37h per cent against
IS per cent proposed IN the Mellon
bill and reduce normal taxes from
and 4 per cent to and per
cent as recommended by the Treas
ury. ro,a,.
a roll call vote on any OF the amend
mentS.
Fail of Agreement.
The meetings between the repub-
lican organization leaders and the In
surgent group yesterday failed TO
bring about an agreement. Representa-
tive Frear, Wisconsin, a spokesman for
the insurgents, previously had an
nounced If their compromise offer was
not accepted, his group, believed TO
number between ten and fourteen votes
would support the democratic plan.
The democrats, with membership
of 2o7 out of 435 in the House, are
bound by party caucus action to sup
port the Garner plan, and represent
atives Wefald, farmer-laborite. Min
nesota, and Berger, socialist, Wiscon-
sin, also have announced their IN
tention to vote for that program.
Representative Deal, democrat, Fir-
ginia however. was excused from inc
caucus agreement, and has said he
will vote for the Mellon rates.
come rate sections were taken up to-
day out of turn in the reading or the
bill, which was commenced yesterday
at the conclusion of the four days or
democratic income tax plan should be
in order as an amendment ana thaI
thereafter the plan proposed by KEEP
resentative Frear should be in order
as substitute amendment. Repre,
change in the present surtax rates
and for a so per cent cut in the nor
NAL income taxes.
Would Raise Surtax.
In conference with the republican
leaders the insurgent group offered
to agree to a reduction in the sur
taxes to a 40 per cent maximum. but
held out for their normal rate re-
auctions. The republicans refused to
yield on the normal rates, which are
cut 25 per cent in the bill, but offered
to boost the Mellon surtaxes from
25 per cent maximum to 3715 per cent
The democratic program calls for
a reduction in the present normal In
come taxes to 2 per cent on net In
comes of $4,000 and under; per cent
on incomes between SS,000 ana so,ooo
and 6 per cent on incomes ABOVE tnat
amount. Exemptions would be In
creased, giving single persons an ex-
emption of $4,000 and married per
sons $4,000 exemption, and 1t speci-
fes that where husbands and wives
make separate returns, the exemption
NAV be claimed by either or divided
between them.
Democratic Proposal.
The democratic surtax rates are
started at i per cent on net incomes
between $4,000 and $4,000, advance
| ing 1 per cent for each additional
| So 600 until "a per cent is reached or
incomes of $4,000 to $4,000. TIM
rate then advances per cent for each
additional 81 1000 to 80 per cent on III.
comes of $68, 900. 1t progresses then az
/ per cent for each additional $1,000
to a rate of 43 per cent on incomes
between $4,000 and $4,000. On all
incomes above that amount a tax oK
"A per cent is imposed.
THE Frear amendment provides for
q normal income tax rate of 2 p4
cent on incomes up to $4,000 andA
per cent on all above that amount
The present surtax rates, starting. at
1 per cent on incomes between $6i666
and $4,000 and progressing upward
to so per cent on incomes of $206.N16.
would be refined. AIRY
The bill carrying the Mellon rates
provides for normal taxes of 5hper
cent on incomes below $4,000 a@dt6
per cent above. The surtaxes would
start at $4,000, progressing to a. rs
per cent rate on incomes aboveu440s
900. No change in exemptions jsSKtSS
tvided. Drsar -.