Evening star., 1924-05-06
Lets 1t Be Known He Disap-
proves Corporation and
Publicity Provisions.
REPUBLICAN LEADERS
WILL ASK COMPROMISE
Plan to Make Stand for Maximum
Surtax of 80 Per Cent at
Beginning.


today that he regards as very unde-
sirable some of the amendments
made to the tax bill by the Senate.
At the same time Senate organiza-
ton Republicans agreed at a confer
ence to seek a compromise on the
Democratic surtax rates voted into
the revenue bill yesterday at a max
imum rate of 80 per cent and, if this
fails, to go to 37R per cent, the
House schedule.
Wants Mellon Plan.
The position of the President on
the revenue measure was declared at
the White House today to be sub
stantially unchanged. namely, firm
adherence to the Mellon plan, with
out compromise of its essential pro-
Visions.
changes might lead the President to
veto the bill brought the reply that Mr..
Coolidge does not feel that an announce
ment Of executive action should be made
Until bill is before him for considera-
Stion in its entirety. Any announcement
would be particularly inopportune at
the present time in the Presidents be-
lfef because of the possibility that the
measure may yet undergo considerable
change not only in the Senate but in
conference.
Changes DislTked.
Amendments viewed by the President
as particularly undesirable are those re-
lating to taxation of corporations and
These amendments he regards as more
undesirable than the substitution of the
Simmons surtax rates for the Mellon
rates as voted yesterday by the Senate.
The Republican insurgents who
made possible the Democratic victory
in the Senate yesterday were not
present at the party Organization
conference today.
The compromise move decided upon
at the conference will be made when
the bill Is up for final passage. Sen
ator Watson, Republican, Indiana,
demanded that an ensrt be made for
the 81 per cent rate, while the House
the next and last step in the compro-
mise maneuver.
Democrats CONFIDENT.
Final decision on what compromises
there will be on the ticket rests in
the hands of Republican insurgents
who voted with the Democrats yes
terday, and the Democrats were con-
fident today that their schedule, call
ing for a maximum surtax rate of
40 per cent, would stand against any
compromise offer. In support of this
claim they pointed out that they had
more impaired absentees than the Re-
publicans in the vote yesterday,
which resulted 43 to 40 against the
Mellon rates
A like vote was cast when the
Democratic rates-drawn by Senator
simmons OF North Carolina-were
put to a direct test against the Long
worth compromise rates adopted by
senate Democratic plan differ so
slightly, advocates of the latter as
serted, that a Republican compromise
will be difficult
May Vote This Week.
There is a prospect that the vote
on passage of the bin will come by
The end OF the week, although some
time was lost today by consideration
of other measures brought up by
previous agreement. Flushed by
their victory, however, the Democrats
we're prepared to push through their
substitutes for the corporation and
estate taxes which they have indorsed
in party conference
The much-discussed Mellon tax
plan, II seems, has been laid to rest
with the adoption by the Senate of
the entire Democratic income tax
Retention of the Democratic rates
would leave little to be worked out
in conference between the Senate and
House. The surtax rates vary by less
than ! per cent at almost all points
nf dYneRAnHN O
in the two schedules also are similar.
Both provide for 2 per cent rate on
incomes up to $4,000 and per cent
on incomes over $4,000, while the
mako the rate on incomes between
$4,000 and $4,000 4 per cent, as COM
pared with the House rate of 5 per
cent. ''''-'''
Both Surtax Schedules.
The surtax schedule in both plans
would start at $4,000, the Simmons
with a rate OF per cent and the
House at Ia per cent. The House
maximum is 37h on incomes over
100000. The Simmons plan provides
for a rate of 3s per cent on incomes
between $2oo, 900 and and 100000 and
a maximum of 40 per cent on incomes
over $50o,000.
Aside from the corporation and es-
tate tax substitutes, more than forty
other amendments to the bill are
pending, offered by individual MEM
hers. Although considerable talking
IS expected on these, it Is believed a
majority will stand by the committee
measure, which was worked out on a
non-partiSan basis except for the in
come and corporation rates.
Vote Proved Surprise.
The vote on the income tax sched-
,,la came with considerable surprise
20 leaders OF both sides. Throughout
discussion of the lbill less than a
score of senators were ON the floor,
and when Senator Jones, Democrat,
New Mexico, suggested a vote and no
speakers appeared the leaders sub
1nitted
The surtax rates written into the
bill yesterday provide for reduction
of the present maximum Of so per cent
70 a maximum Of 40 per cent and for
corresponding revisions all along the
line. They are almost similar to
hose adopted by the House.
per cent on the hrst $4,000 of income;
4 per cent on the second $4,000. and S
ner cent on all above $1,000. This
,.ompares with the present rates Of
per cant on the frst $4,000 and per
ent above that amount.