The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-04-15

WASHINGTON, April l5.-Leaders in !
the two branches of congress finally have
decided that for the next few years the |
government must be financed by direct
taxation rather than by the issue of bonds
The first taxation law probably will be
that providing funds to pay bonus for
veterans of the great war. The bill,
which will be drafted by a subcommittee
of the committee of ways and means,
will be reported to the full committee be-
fore the end of the month and will be
laid before the house early in May.
The ACCESSIBILITY of substituting for the
excess profits tax, tax OF % per cent
on the difference between the amount
earned by corporation and the amount
distributed to its stockholders will be
considered. The excess profits tax, it is
agreed, will not be sufficient to raise the
money needed for 1921, because Of var
ious means adopted by many corporations
to dodge the law
The decision to adopt direct taxation as
a means of raising revenue for the gov
eminent is the result of the known finan-
| cial condition of the country.
House leaders declare that the financial
| outlook for the next few years is very
| dark. The government Is carrying $1,000
| 100000 III short-time certificates to meet
| the present deficiency. Indications now
are that the receipts during the next fis-
cal year will be another $1,000, 100000 less
! than the outgo. The house, to meet the
deficiency in part is pursuing the policy
of cutting estimates on appropriation
| bills 80 per cent If the senate follows
there will he a net savings of 81 ,250,000, 600
| the balance, 81, 100000 must be raised
| in the opinion of house leaders, by direct
taxation Bonds carrying interest of
and one-fourth per cent or more are out
| Of the question.
Tentative drafts of the bill now being
drawn for the subcommittee provide foi
tax of one-half of one per cent on sales
| Whether the tax will be on final sales
or turnover sales will depend on the
amount of money that each accordin,
To- the estimates Of experts, will produce
The subcommittee intends to report
bill to appropriate $l000,G00,000, the bon
uses to lie paid quarterly and the taxe
quarterly. The men to be benefited vii
be those who saw actual military service
at home as well as abroad, $500, 900 in all
Officers are eliminated from the provision
OF the bill. as are SO0,o00,O0 men who saw
less than go days service and 100000 VIII
were indicted into service but were sen
to shpyards, spruce plants, etc. as wei
as men who received part pay from thei
employers while in the service Member
of the committee who are opposed to sui
stitutIng a direct tax for the excess profit
tax say they will favor tho substitute
if the direct tax works well in the bonu
experiment
Each person travelling abroad will b
compelled to take out passport and t
pay a fec of So by a rider to the diplo
matte and consular appropriation hi
which the confcrrees will report to th
house Monday. The rider also will e,
tabsh a fec of $40 for consular vses
The two innovations, it is estimated, wi
provide an annual revenue of >Sl6000,0 90
to be used to expand and improve tn
american foreign service and To put it i
stem with the new era in world trade an
diplomacy