The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-02-20
Garner Bill
Carries by
222-l96Vote
The Republican Organization
Leaders Given No Opportun-
ity to Vote on Compro.
mise Measure.
Maximum Surtax Is ~

Washington. Feb. 1s.-Aided by a
group of republicans, most of them
insurgents, house democrats today
eliminated from the revenue bill the
Mellon income tax rates.
By a vote Of 222 to 1876, a schedule
advanced by Representative Garner.
democrat, Texas, was substituted.
The bill, as amended, fixes the sur
tax maximum at ~ per cent on in
comes in excess OF 1000 as against
so per cent on incomes exceeding
s20O.0O0 under existing law, and Is
per cent on incomes of more than
500, 900. as recommended by the
treasury. 1t also reduces normal in.
come rates to a greater extent than
Mellon recommended and increases
personal etx exemptions "a feature not
in the treasury draft.
Reject Frear's Bill.
Before approving the Garner pro
posal. which received the support OF
II republicans and one farmerlabor.
ite and one independent. in addition
to 203 democrats, the house went on
recor das opposed to rates substan-
TALLY the same as those recommended
by Mellon and rejected an amend
ment by Representative Frear OF
Wisconsin. an insurgent, to cut nor
NAL rates in half without altering
the existing surtax schedule.
Republican organization leaders had
TO opportunity to bring to vote
compromise amendment which pro-
posed a % per cent reduction IN both
normal and surtax rates.
Teller's Vote Taken.
Rules in effect today prevented a
roll call on the democratic substitute
which was approved by a teiier's
vote A record vote, however. on the
amendment can be demanded before
the bill comes up for passage and
Organization republicans are planning
to bring this about.
Such a vote would bring a straight
out test of strength between the Mel
lon and Garner rates. An opportuni-
I yalso viii be afforded the repub-
llicans 70 offer their compromise with
a roll call on the proposition in order
After disposing OF the income rates
section. an amendment offered by
Representative Garner. proposing to
make stock dividends taxable. was
defeated, l4l to l2T. The house pro
ceeded with reading OF the bill in
regular order.
Provisions Of Tax.
The democratic income tax pro
vides:
Normal taxes OF per cent on in
comes below $1,000: 4 per cent on in
comes between $1,000 and $4,000; s
per cent on incomes exceeding $4,000.
A graduated surtax scale beginning
at per cent on incomes between
l2 900 and $4,000 up 10 maximum
of a per cent on incomes exceeding
see 900.
Exemptions of 5000 for single per
sons and $4,000 for heads Of families.
Existing law provides:
Normal taxes OF per cent on in
comes nup TO $4,000 and Per cent
above 5000.
Surtsxes beginning at l per cent
IOH ilNttltS tfAHtth WV anu Wv
GOO and graduating progressively %
so per cent on incomes in excess OF
5000, 600.
Exemption Of 81 900 for singi.
persons and $500 for heads Of
families
The Mellon provision elimisnted
proposed;
Normal rates Of rer cent On IN
comes up TO $4,000 and s per cent on
incomes exceeding $4,000.
Surtsxes ranging from ! per cent
on incomes between 10000 and sis .oea
to Is per cent on incomes exceeding
100 600.
No increase in personal tax exemr-
tons.
The Frear amendment rejected.
proposed:
Cutting normal rates in half with
surtaSes continuing st their present
level.
| No change in exemptions.
The Madden amendment. voted
down. differed from thu Mellon
schedule in the maximum snrtsx rate
which Il sought 10 have fixed at -
per cent