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Show MAY COMPROMISE OH SURTAX RATES INSURGENTS IN HOUSE AGREE ON TAX RATES OF LONG-WORTH LONG-WORTH SCHEDULE Straight Twenty-Five Per Cent Cut on Present Surtax Is Acceptable; Accept-able; Mellon Plan Is Changed Washington, Virtual agreement between Republican organization and insurgent leaders was readied Thursday Thurs-day on the Longworth compromise to replace the Democratic income rates now in the revenue bill. The Longworth surtax rates acceptable ac-ceptable to the insurgents. provide for a straight 25 per cent cut on the present surtaxes, retaining the same brackets which would make the maximum max-imum 37 per cent on incomes in excess of ?200,000 instead of 25 per cent on incomes over S1U0.O00 as recommended re-commended by Secretary Mellon. Democratic maximum surtax rates would be 44 per cent on incomes over $94,000. Washington, House Republican insurgents agreed Thursday to the Longworth compromise on surtax rates and if the Republican organization organiza-tion yields to a slightly lower normal nor-mal rate, leaders of the group indicated in-dicated they would vote to eliminate the Democratic income tax schedule from the revenue bill. Resuming consideration of the bill, the house voted to cut In half the 5 per cent tax on automobile tires, ac-cessoriesand ac-cessoriesand parts and to exempt automobile trucks and wagons with a chassis costing $1000 or less. Those with chassis costing more would be taxed at 3 per cent. Further conferences will be held between the insurgents and Republican Republi-can organization lenders looking toward to-ward a definite agreement on the compromise. Seventeen insurgents voted with the Democrats for the Garner plan when it was substituted for the Mellon Mel-lon rates. The vote was 220 to l'JC. The insurgent votes, leaders of both sides say, will swing of the decision on final passage of the bill. Normal income rates proposed by the insurgents on which the agreement agree-ment now hidges are 2 per cent on incomes under $1000; 5 per cent on incomes between $4000 and $$000, and 0 per cent above that amount. Representative Longworth, Ohio, the Republican leader, has proposed rates of 2 and 6 per cent with $4000 the dividing line. Democratic rates In the bill are 2 per cent on incomes under $5000 : 4 per cent on incomes between $5000 and SViOO, and C per cent on Incomes above that amount. |