The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-12-28
SOLDIER BONUS
WOULD COST j. S.
,3OO,OOO,OOO

WASHINGTON, Dec. 2s.--Passage
OF the soldier bonus bill would cost
the government approximately 81
500 600 600 Secretary Houston estf-
mated before the senate finance COM
mitee, considering the soldiers aid
measure.
The treasury secretary declared en-
actment Of the bill meant an added
burden in the way Of taxes, reiterat-
ing a statement made before the COM
mittee last week, that the treasury
ought not to he called upon to as
sumo any additional burdens.
While Mr. Houston said II was I'M
possible to compute accurately the
exact cost Of each of the four OPP
tional plans, he believed the estimate
submitted was substantially correct.
Provisions of the bill contain so many
uncertainties, he added, that the cost
entailed by them could only be guess
cd at
Assuming that all Of the men would
select one OF the four optional plans
Mr.. Houston estimated the cost Of
each as follows:
Adjusted service pay, S1342 10000
Insurance provisions S453a 900 600
Vocational training, $3.50, 900, 900,
al III anu ilbiilt NtANPii 90
sS0.000.000.
AS the nlans were optional the Sec
retarv said. the choice of the meN
would not be confined to any one of
them and allowing for the various
selections he arrived at his total es.
t'r1atoa cost # 80 900 10000
Secretary Puzzled,
The treasury secretary professed
To be against a wall as to methods
of obtaining revenue 70 meet the
outlay that would be required II the
bill were enacted IIo called the
committees attention TO the sugges-
tons for new taxes contained in his
annual report, but explained that
these were mentioned only for the
information of congress and with
out any sort of recommendations
He did not attempt to discuss the
various tax suggestions, asking the
committee to hear Dr. r. S. Adams
treasury economist and tax expert
who gave comprehensive resume
Of the tax situation. referring fire.
uuently to Secretary Houston's dis
cussion of the question in his annual
report He declared the treasury
was daily seeing new evidence of a
further drying up of revenue sources
adding that the task OF computing
tax receipts was to that extent be
coming more difficult.
In addition TO the difficulties thus
confronting the treasury Or. Adams
declared the internal revenue bureau
faced another problem in keeping
experts on the Job. He said thu
men who were cApable did not stay
long.
Senator Smoot Republican. Utah.
said "the real danger is that these
men get training in the revenue bu-
reau, then go out and help big firms
eVade ta&payments."
DR.. Adams said that might b.
true to some extent, but that he
knew of one man who left the bu-
reau year ago whose resignation
cost the government millions of dol
lars In uncollected taxes for he was
an executive with an expert knowl-
edge of the work"
The witness said this was typical
OF the labor turnover and that it
directly affe ted the tax collections
and would continue to have a more
direct effect ON such collections un-
less tax laws were simplified
Senator Smoot said all those diff
ficulties could be avoided IL revenue
law which the average man can un-
derstand" were passed by congress.
The committee adjourned without
spttiuU a date for ff1ptbar "a, Ysr.,