Show REPUBLICANS I AGREE UN ON TAX RATES RATE House Takes Up Income Schedules With Democrats Democrats Demo Demo- Presenting United Front on Garner Plan I WASHINGTON Feb 19 The The The Democratic substitute f for r the Mellon Mellon Mel Mel- lon Ion normal income tax and surtax rates carried carri d in the revenue bill was approved today by the house house t WAsI WASHINGTON Feb 19 19 An l hour eleventh appeal by the WhiteHouse WhiteHouse White WhiteHouse House toda today to house n Republican an insurgent leaders e ders urging agreement gree nt with the organization Rp Republicans on the Mellon income tax rate s schedule failed to break the deadlock deadlock deadlock dead dead- lock between the groups groups As the income r ites tes of the revenue revenue revenue reve reve- nue bill were tal taken en up in in house Republican leaders admitted the vote would be lose with the D Democrats Democrats Demo Demo- mo- mo United for tor the Ule Garner Garnet Democratic Democratic Demo Demo- cratic plan and with the tIo insurgents still holding out against the treasury treasury treasury treas- treas treas treas- ury rates and threatening to LQ vote with the Democrats if it their compromise compromise com corn promise is riot not accepted J I COOLIDGE TAKES HAND C. C Bascom Slemp secretary to the president Informed some members members mem mem- memo bers of ot the Insurgent group group today that the p president pl was desirous that the party should 1 stand stand as a unit in the tax ax fight This move followed failure of two meetings yesterday between the Republican i organization and insurgent It members mem men bers bels to reach an agreement on a a compromise the latter group grout holding holding hold hold- in ing out for a 40 per cent maximum surtax surtax with witha a BO 60 per cent cut in rates while the R Republicans would go no higher than 37 per pr percent cent on the surtax and a 25 per cent cut in normal rates Representative Treadway of ot Massachusetts one of the- the Republicans means comI committee com corn cans of the ways and I who voted the Mellon income rates into the bill served notice to today today too to- I day that if the rates were vere ere defeated he ha would move their adoption as as an amendment the after bill Is I I Continued on page pageS 8 I REPUBLICANS S Continued from page 1 completed This he believed would make it possible to get a record vote on the Mellon rates OFFERS COMPROMISE COI After Arter considerable debate the house reached an an agreement to be begin begin begin be- be I gin voting at p p. p m m. m today on the Frear and Garner Income tax rate amendments It was planned to put the Fear substitute to a vote first Representative Longworth Ohio the Republican leader announced that he would offer a compromise amendment in the event that Frear and Garner proposals were rejected I The compromise would fix the surtax surtax surtax sur sur- tax minimum at at- 37 ST fc per cent against 25 per ce cent t t proposed in the Mellon bill and reduce n normal taxes from 8 and 4 to 6 and 3 per cent I j as is recommended by the treasury Parliamentary rules now In force c. c would prevent a n. P any ny o of the amendments I GAR GARNER OPENS NS A full tull attendance attendance- was was was' wason on the amend- amend floor as the debate debato d bate began on ments Garner of Texas Representative Texas opened for tor tho the Democrats arguing that the only loophole In th tho Garner absurd estimate that an plan was deficit inthe in m in 1927 it Jt would worK warI a a. the He treasury treasur Insisted insisted such a n. deficit could accurately so BO far farin farin not be figured fah in advance ance and asse asserted that Josh J Joseph SP actuary has McCoy cCO government would would told him the Democratic p plan ralso more mote revenue in m 1924 than the Mellon plan Representative Frear Ra Republican I insurgent of Wisconsin f stirred up th the I IDe from fro considerable applause De Democratic side by his Jabs froat at the he Republicans for demands which he I said they made upon him to toby standby stand standby a matter of or I by the Mellon eUon rates as party Darty principle I bill Mellon this You cant can't Jam I down by throat ho said adding I that the Republican leaders were I first to throw aside the among the Mellon rates II FREAR TAKES FLOOR FLOOR Mr i Frear argued that his own I plan would give greater relief to to the large number of ot taxpayers an and announced main again a aln he would seek a gift tax and Increased inheritance tax Attacking both the Frear and Garner plans Representative Mills of New r York a Republican member member member mem mem- ber of or the ways and means committee committee com com- and an advocate of or the Mel Ion Mellon Mel Mel- of declared adoption lon Ion proposal the Democratic rate would result In a deficit of a a. year once it Jt was in full effect Chairman Green Iowa of or the I wa ways s and means committee who I had opposed the Mellon surtax rates argued for tor the first time lime on or orthis i this section since the bill was re reported reported re- re ported declaring the Garner plan i would res result lt in a deficit He insisted insist insist- ed there should be some cut in the surtaxes and therefore opposed the Frear substitute I FIFTY PER CENT CUT 1 I Representative Fears Fear's plan calls cans for no change In the present surtax rates and for a 50 per cent cut inthe in inthe inthe the normal Income taxes tates i In conference with the the can leaders the insurgent group of offered offered or- or to agree to a reduction In the surtax to a a. 40 per cent maximum but held out for their their- normal rate reductions The Republicans re refused refused refused re- re fused to yield on the normal rates which are cut 25 per cent In the bill but offered to boost th the Mellon 1 surtaxes from a 25 per cent maxImum maximum maximum maxi maxI- mum to 37 per cent The Democratic program calls for fora a reduction in the present normal income taxes to 2 per cent on net Incomes of and under 4 per percent percent percent cent on Incomes between and and 6 per cent on incomes above that amount Exemptions would be increased giving single pers persons ns an exception of 2000 and married persons exemption and It specifies that where husbands hus hus- husbands bands and wives make s separate parate I hus re returns returns returns re- re turns the tho exemption may be claimed by either or divided between between between be be- tween them SURTAX RATES OUTLINED The Democratic surtax rates are re restarted started at ft 1 per cent on net in incomes Incomes incomes In- In comes between and advancing 1 per cent for tor each additional additional additional addi addi- 2000 until 24 per cent is reached on Incomes of ot to The rate then advances 1 per cent for tor each additional 1000 to 30 per cent on Incomes of ot 66 i It progresses then at 1 per percent percent percent cent for tor each additional 2000 to a arate arate arate rate of or 43 per cent on incomes be between between between be- be tween and On all incomes above that amount a tax of 44 per cent is Imposed The Frear amendment provides for a normal income tax rate of or 2 per cent on incomes up to and andI 4 I per cent on all above that amount The present surtax rates starting at 1 1 per cent on incomes between and and progressing upward to 50 per cent on incomes of If would be retained The bill carrying the Mellon Menon rates rates- provides for normal taxes of ot 3 per cent on Incomes below and andi I 6 per cent above The surtaxes surtaxes surtaxes sur sur- taxes would start at progressing pro pro- 25 cent rate on Incomes in incomes incomes In- In gressing to a no per I comes above No change in exemptions Is provided |