Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-12-30
BONUS PLAN WILL
COST s2,3O0,OOO,00O
Estimate Made by Secretary
Houston in Case Provisions of
Pending Bill Are Carried
Out

Washington, Dec. 2-Approxinately
$500 100000 was the estimate submitted
to-day by Secretary Houston of the trea-
sury Ms the cost of carrying out provi-
sions of the soldier bonus bin.
Inc treasury secretary presented his es-
innate to the Senate finance committee
without comment, other than to urge that
no Legislation be enacted which would lay
AN additional burden on the nations fl
nances. The estimate was accompanied by
figures showing the cost of carrying out
any one of the five optional provisions OF
me bonus bill provided all former service
men chose a single plan. The figurea for
the various plans ranged from 81, 342 o0o, 900
FOR the adjusted pay provision to A534.-
Wo,oOo for the insurance provision. The
maximum possible cost OF the vocational
training nd and the farm and home de-
Ve,opment plans were placed at 81 $50, 900, =
900 each while she secretary said the fifth
provision, plan for land settlement. held
so many uncertainties, that it was Inn
possible to estimate tho possible cxpendi-
ture.
Submission OF the estimated total cost
made an apparent impression upon Nom
bers OF the committee, which is consd-
er'hg the bonus bill as passed by tho
House at the last session. Members de-
clined to forecast the decision of the COM
mittee on the question Of reporting out
the measure, but II was recalled that
senator McCunber. Republican, North
Dakota. stated at the opening Of hearing
on the bill that its passage would depend
largely on the state OF government f..
nances and that Mr.. Houston has testi-
fled the treasury with normal expendi-
lures would have a deficit of S2,100 900 900
for the year ending next June 80 and de-
ficit Of I,0oO 100000 for the following 70
months.
During Mr.. Houston testimony. 1t
became increasingly evident that the
present administration does not desire
either to advise or to recommend with
respect to legislation providing for
greater governmental expenditures
The secretary made plain to the COM
mittee his thought in submitting list
of possible sources Of new taxes in
his annual report, saying they were for
the Information Of Congress and were
In no sense more than suggestions
Reiterating his opposition to re-
v'val of the War Finance Corporation.
Mr.. Houston declared the present
sources OF revenue were fast declining
and added that he knew not where the
money was to come from to meet tho
bonus payment, should the bill be en-
acted into law. He avoided discussing
the additional taxes carried in the bill
and designed to meet it's needs, refering
the committee first to the survey of
the taxation problem in his annual re-
port and explaining he was unable even
to prescribe ways OF raising revenue
for the current needs without read
justinE and revising present tax laws
to produce more money.
DIR. T. s. Adams, treasurer economist
and tax expert, at the suggestion Of Mr..
lJouston gave the committee a complete
statement of revenue obtainabe from the
various taxes. suggested to Congress In
Mr.. Houstons annual report. He point
ed to many new sources which might be
utilized but explained that much OF the
question of raising tax levy centered
first in the determination of n revenue
policy which only Congress could pro-
vide.
DR.. Adams also suggested to the COM
mittee that one of the greatest needs
was simplificatlon of the revenue laws
a statement concurred in by Senator
Smoot Republican. Utah. who said there
was an evident need for enactment OF
tax laws (which the average man can
understa nd."