The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-04-13
Cash Payment for Each Day S
Service is Plan Approved
by Bonus Com
mittee.
TO BE RAISED BY TAX
Slightly Less Than One Billion Dol
lars Needed to Give Every
Service Man
Present.
E[By Herbert w. Walker, United Press
Staff CnrraSInndent

I[By Herbert w. Walker, United Press
Staff Correspondent
| WASHINGTON, April ia cash
bonus of 81 for each days service
would be given to approximately 3,-
00O,0 of the 4,800,000 men in the
army, navy and marine corps during
the war under plan that has been
approved by the bonus subcommittee
of the house ways and means com
tmittee, it was learned today.
The program, which will be sub
mitted to the full committee for ap-
proyal during this week, calls for an
expenditure of slightly less than ST.
900 0,0O0, 900, which is to be raised by
tax Of one half of one percent on
all sales. 1t is considered very Likely
that this plan will be the one which
will be submitted to the house in the
near future.
With the purpose of limiting the
bonus to those who endured heavy
financial sacrifices during the war,
the subcommittee has eliminated
several classes of service men from
the groups entitled to benefits, the
total number eliminated being esti-
mated at 100000.
Among these classes are:
Those who served less than sixty
days because these men already have
received the original $50 bonus.
Men who were assigned to indus
trial plants, such as ship building
and received extra compensation
therefor.
All officers. .sr.-
Men in the regular army before the
decIa ration of war,
Men who. while serving in the
army, received compensation from
their employers or business inter
ests.
No man would be given the bonus
until he applied for it and this, it IS
believed, would reduce the total ex-
penditure, as many service men who
have wealth, are not expected to ASK
the extra compensation. The appl-
cation is to contain an affidavit that
the soldier is not in any OF the above
classes.
The plan calls for payment OF the
bonus in four equal instaliments and
the sales taxes are to be collected
in the corresponding periods.
The average service, the sub-comm1t-
tee has been informed, is ten months,
making the average bonus about $3O0.>
Men who were promoted to be COM
missioned officers would be paid only
for the time they served as enlisted
men. The committee is not waiting for
estimates from the treasury depart
ment as to eXactll how much can be
raised by the tax on sales, but pre-
lirninary estimates place the amount
at about $1,5O0,000,000. The levylng
Of this tax also would be In the nature
of an experiment as there IS sentl-
ment in congress for having 1t re-
pIace some of the other taxes later.
For the present, however, 1t must De
in addition TO all other taxes.
Under the house committee plan,
all businesses with total sales OF less
than s25O0 a year and all small
farmers should be exempted. Inc
tax would not be paid by stamps as
is the case in the present consump-
tion leYies.
It's collection, it is believed, would
be simple. All business concerns at
the end of every three months after
the passage of the law would simply
nav one-half of one percent on their
total sales. The advocates or the
tax claim it would not increase the
cost of living in any considerable de-
gree as it would amount to only fifty
cents ON every 800. All transactions,
wholesale, retail and real estate,
would be taxed.