Show I I COMMITTEE Is 15 I STEP NEARER RATE PROBLEM Mellons Mellon's Recommendation to Prohibit Husbands and Wives Wives' l Splitting Incomes Incomes In In- comes Meets Meet Defeat W WASHINGTON Jan 26 The The house ways and means committee advanced a step nearer the income tax rates of or the revenue bill today with disposition in part of the community corn com I property tax section of com I the pending measure but two groups of Republicans failed at meeting to I unite their forces for the impending income rates fight Secretary Mellons Mellon's recommendation tion to prohibit husbands and wives dividing family incomes for purposes purposes pur pur- purposes pur- pur poses of ot filing separate tax returns as as' allowed in eight states was re rejected rejected re- re in committee on a bi parti bipartisan san vote Another vote will be beronda Monday a ronda on a prop proposal sal Chairman Green to prohibit such divisions of incomes when received atone alone from wages and salaries Secretary Mellon Mellon Mel Mel- lon Ion estimated adoption of this sec see section section tion would net additional revenue COMPROMISE DISCUSSED Whether the Republicans will unite on a party bill in committee or mal make e new overtures to the Democrats Democrats Democrats Dem Dem- for a compromise on the Mellon bill was the subject of discussions discussions discussions dis dis- dis- dis at a meeting of the Republican Republican Republican lican steering committee and a conference conference conference con con- ference of the Republican Republic n members ways and means committee No action however was taken Meanwhile Democratic members of the committee maintained their attitude of passive resistance to the Mellon bill awaiting a move by tho Republicans to support or compromise compromise com corn promise th the treasury recommEndations On completion of or consideration consideration consider consider- atlon of the community property taxes faxes Monday tho the committee will proceed under its program to discussion discussion dis dis- dis- dis of the proposals for additional additional addi addi- reduction in Sn taxation on earned income Two days probably will be given to this subject and then the income rates will be taken tal up The bill must roust be reported to the house February 1 1 I SPLIT INCOMES pOSED During consideration on of or the community community com corn property section today Representative Young Republican New ew York submitted a motion to compel the husband or wife in Ia charge of a family Income to file tile filea tilea a joint return for the entire in In- In come This would prohibit he contended contended con con- tended evasion of high surtax rates by the splitting of Incomes between a husband and wife wire Representative Crowther Republican Republican Republican lican New York who supported I Ithe the motion said Joseph McCoy treasury actuary had estimated such a provision would yield I additional revenue The i committee deferred a action tion o on the I motion I |