Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-28
PARTISAN DEBATE
ON SOLDIER BONUS
"War Profits" Tax Proposal
Figures Prominently in
the House.

; Partisan debate over the method Of
| raising something like two billion
dollars to pay a service bonus to those
! who participated In the world war
occupied the attention of the House
during the entire session yesterday.
| Insurgent republicans under the
leadership Of Representative Royal
Johnson of South Dakota. himself
war veteran. Joined with the demo-
/ Gratis. He announced that sevcnty-f1
republicans would stand for retroac
tive war profits tax instead Of
sales tax as proposed by republican
leaders. His statement II borne out
latr". would Indicate an upset Of tie
'eruhican program for passing the
III Monday without permitting a.
ton Cr ne war proits tax pro-
pcs:l Representative Garner Of
7 -ns the q n,ocraiic whip. predicted
caurus ,exi c'r.ilay tight would lie
10 = ,iip' the :nsur.-ents into line.
war Profits" Bill Presented
Mr. johnson and Representative
Henry T Rainey. democrat. Illinois.
introduced d"rinE tie day tn" war
profits tax bill which would place
an so per cent levy on the increase
81 net income during the last four
years over that OF the pre-war period.
The plan was attacked by Representa-
tives Green. Iowa, and l.ongworth.
Ohio. republicans, who declared. 1t
would levy taxes on taxes" and that
he excess earnings of individuals aud
operations during the war period
,ad already been taxed more than %
per cent.
ITO accept this plan means there
will be no soldier legislation" de-
clared Mr.. Longworth adding that II
, would kill the soldiers bill beyond
resurrection
without giving the details Mr..
Longworth said the republican plan
for raj Using the money proposed a five
rold scheme Of taxation. Besides the
levy on sales which he said would
not raise much" Mr.. Longworth said
all stock exchange transa ctions were
to be taxed. while the existing levies
on tobacco. incomes and real estate
sales We're 10 be increased.
He also announced that officers of
the rank Of captain or below in the
Army and OF corresponding grades in
the Navy would receive the benefits
of the relief legislation as well as the
enlisted men.
Advocates q Third Plan.
Representative Frear. republican
Wisconsin, advocated a third plan for
raising money. providing for in
crea sed income taxes during 1919. 1920
and 1921. a tax on stock dividends is
sued this year and new taxes on au-
tomobiles and theater admissions and
real estate sales.
Representative Clark. the demo-
cratic leader. and Mr. Garner demand
ed that opportunity be given to amend
the bill. Mr.. Clark recalled the par
liamentary revolution of 1910 and
gave gentle warning" that the re-
publicans were entering on the same
kind of conduct that led to the upset
of their machine then"
Mr.. Garner said the republicans
were playing politics" with the leg
islation and would not pass it until
after the election.
Says Financial Interests Favor.
Representative Rainey said the
proposed sales tax was especially IA
vored by the great financial inter-
csts" and once adopted would never
be discarded
bill" declared Mr. Clark in this con-
nection. tout of which more irritation
than revenue is to come"
Representative Griffin. democrat
New York. declared that the right
way to obtain revenue for soldier
bonus was through taxation of big
DEMONSTRATION SO heavy that
there would be no incomes above
Mr.. Griffin cited a list "of war-made
millionaires," which included 452
women. 81 doctors, 206 lawyers and
judges. 100 farmers and stockmen, go
manufacturers and III corporation
officials.