Show i MM H M H M H B M M Democratic Revolt Over Tax T ax Bill Looms Loonis COMPROMISE PLAN REFUSED BY PRESIDENT PRESIDENTS S Senate e n ate Insurgents Threaten to Stand Standby Standby Standby by Our Guns' Guns WASHINGTON May 27 UP UP-A UP A new Democratic re revolt revolt revolt re- re volt threatened the senate fi finance finance finance fi- fi nance committee today after President Roosevelt rejected a compromise on the corporation corporation corporation corpora corpora- tion tax bill because it failed I to produce sufficient revenue Insurgent Democrats on the committee com com- indicated they would stand standby standby I by our guns Mr Roosevelt pointed out at a White House conference that the yield of ot the compromise was short of his recommendation urged that it be Increased and that the bulk of ot that increase be bo obtained from corpora corpora- Question Reopened The conference attended by committeD committee com corn Democrats Majority Leader Joseph T. T Robinson Robins m D D. Ark and Secretary of Treasury Henry Mor- Mor Jr broke up shortly before midnight with the almost completed tax compromise torn w wide de open again The Th trea treasury ury was asked for estimates estima s on proposed revisions Plans Pias it t was understood may in include include in- in clude elude proposals to retain the present present pres pres- ent 12 to 15 per cent flat tax on corporations and to substitute for forthe forthe forthe the prop proposed 7 per cent tax on un undivided undivided li- li vided profits a tax graduated to a ascale ascale ascale scale more in in- inline line with the widely criticized house bill Another suggestion would keep the compromise flat rate of 18 per percent percent percent cent and raise the 7 per cent super tax to 9 per cent or higher Vigorous opposition to such plans was promised by some rebel Democrats Democrats Democrats Demo Demo- and by Republican members of the committee but the extent of such an uprising remained uncertain tain tam until more definite proposals were formulated Centers on Corporations The administrations administration's concentration concentration concentration tion on corporation earnings as the source for increasing the yield was indicated by the fact that suggestions suggestions suggestions for boosting the normal in income income income in- in come t tax X rate and for broadening the base of surtaxes on incomes were not even discussed at the White House session Discussion of processing taxes which the president president president dent originally suggested also was omitted It was considered significant that the president raised no objections to the committee action yesterday in inputting inputting inputting putting Import taxes on vegetable Oils bUs and fats Some sources believed this action might open the door to a series of such import taxes despite a clash claih with the administrations administration's foreign trade policy Robinson and Senator William H. H King D. D Utah acting in the absence absence absence ab ab- ab- ab sence due to sinus trouble of Chairman Chairman Chairman Chair Chair- man Pat Harrison D. D Miss were the only ones to pause on the tho White WhiteHouse WhiteHouse House steps to talk to reporters Several insurgent members had stalked away in silence |