Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-19
TAX BILL STRUGGLE
SHAPES Up As FIGHT
OVER COMP ROM|SE
BY DAVID LAWRENCE
Heased Wire Service to The Journal.)
(Convrirht. 1024)


Copyright, 1924
WASHINGTON, Feb. 16.-The tax
BILL which has had a stormy prog
ress through the ways and means
committee Of the house, and which
was reported favorably out of the
courtesy to Secretary Mellon so that
he might have a record vote on the
Is per cent surtax rate, now faces
more perilous situation.
Republican leaders like Represent
alive Longworth who from the first
saw the necessity Of a compromise
have done all they could to keep
faith with the administration but
they realize now that unless a com
promise is made at 35 per cent on
the high surtaX rates not only will
there be no chance at all for the 25
per cent rate recommended by Mr..
Mellon but there is a likelihood the
Democratic plan Of forty-four per
cent will prevail.
Republican leaders wanted to re-
port the bill out of committee with
35 per cent surtax but the admin
istration begged them to stand pat
and give the bill a chance before the
full membership of the house. Ac-
cordingly men like Chairman Green
who do not favor the % per cent sur
tax rate voted to report the bill to
the house but gave notice they could
not support the same rates on the
final vote The administration felt
that no compromising should be done
at least until both houses had pass
ed the measure and it was up in con-
ference.
Not Sure of IS Per Cent
But the parliamentar situation is
such that the Repu blican leaders,
cannot get the house to pass a %
per cent surtaX and they are not al
together sure they can put over 35
per cent. 1t all depends on whether
any Democratic support is forthcom-
ing. The Democrats met in caucus
two days ago and 1874 of them pledg-
ed themselves to stand by the Gar
ner plan of A per cent surfaces.
Thirty or more Democrats were alb
sent. The Republican leaders would
need only a handful of Democrats
to put their program through if they
could only be sure Of their own
ranks, but insurgents, mostly from
the west, are opposed even to 35 per
cent and think the Democratic plan
safer one from a political stand
point.
AS amendments are voted on the
! Republican leaders realize that they
must in some way compel a vote OIL
the 35 per cent rate before there is
I an opportunity for the Democrats
to compel a coalition on A per cent.
If 35 per cent should be beaten, there
,l,1 - ~
promise at around So or 40 per cent.
| The plan is to offer an amendment
for each per cent until that point is
! reached where a majority of the
| house will agree.
The situation is almost unpre
cedented. While there is a good deal
of politics in it, party lines are be-
ing broken right and, left and the
lineup is not between Republicans
and Democrats but between those
who think they are stimulating the
business and industrial prosperity
of the country by relieving capital
of restrictions.
Battle for Cor Promise
| If the Republican leaders can ge1
a 35 per cent surtax rate through
the house, they will be lucky indeed
and if the senate sees the wisdom
! of Secretary Melons arguments the
battle in conference between the
two houses would be for a compro-
mise between 25 and 35 per cent.
| There is going to be a compromise
| in the end and much Of the jockey
ing being done now is for the pur
pose of attain!l-g a maximum that
is not too far away from Mr.. Mel
| Ions 25 per cent.
The senate, on the other hand, may
| prove more radical than tn house.
| In any event the moves of the next
week in the house will have an i'm
| portant bearing on what is finally
accomplished. Curiously enough the
main fight is on surfaces as there
| seems to be little difference of opin
| ion on other features of the bill. 1t
! is likely, however, that the admniis-
! tration itself will be compelled to
suggest changes IN the other rates
! if the A per cent surtax is accepted
| and the Democrats likewise will
| have to alter tleir schedule if their
| "A per cent rate isn't approved for
a tax bill is made up of a series of
| balances as between various sched-
ules and an alteration in one rate
! makes necessary a change in other
/ features of the plan. Making tax
! bills on the floor of the house is q
! new experience for congress.
J