Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-12-31
BONUS TO COST
S2,5OO,OOO,OOO
Treasury Secretary Presents Es-
innate on Bill to Senate
Committee.
WOULD ADD TO TAX BURDEN
Houston Presents Estimates Of Four
Different Plans, Declaring They Are
Substantially correct--Doctor
Adams Heard Again.

Washington, Dec. 29.-Passage of
the soldiers bonus bill would cost the
government approximately S2,3U00a0,-
600 Secretary Houston estimated be-
fore the senate finance committee con-
sidering the soldiers aid measure.
The treasury secretary declared en-
actment of the bill meant an added
burden in the way of taxes. reiterat-
ing statement made before the COM
mittee last week.
While Mr.. Houston said it was Inn
possible to compute accurately the ex-
act cost of each of the four optional
aid plans, he believed the estimate
submitted was substantially correct.
Land settlement provisions of the bill
contain 50 many uncertainties, he
added, that the cost entailed by them
could only be guessed at.
Assuming that all Of the men would
select one of the four optional plans.
Mr. Houston estimated the cost of
each Of the plans as follows:
Adjusted service pay, $1,342,000.0OO-
Insurance provisions. $4,534,0o000O.
Vocational training aid, S1,Ss0000,-
600.
Farm and home development. ST.
Ss0.0O0.00O.
AS the plans were optional, the sec
retary said the choice of the men
would not be confined to any one of
them. and allowing for the various Sc
lections he arrived at the total esti-
mattel cost of s2,300.000O00.
The treasury secretary professed TO
be against a wall" as to methods of
obtaining revenue TO meet the outlay
that would be required IL the bill were
enacted He called the committees
attention 10 the suggestions for new
taxes contained in his annual report,
but explained that these were men
toned only for the information Of con
gress and without any sort of recon-
mendations
He did not attempt tc dmcuss the
various tax suggestions, asking the
committee to hear Or. r. S. Adams.
treasury economist and tax expert.
who gave a comprehensive resume of
the tax situation. referring frequently
to Secretary HoustOn's discussion of
the question in his annual report He
declared the treasury was daily see
ing new evidence of a further drying
up of revenue sources. adding that the
task of computing fax receipts was
TO that extent becoming more diff
cult.
In addition TO the difficulties thus
confronting the treasury, Doctor
Adams declared the internal revenue
'.ue;tu faced another problem in keep
ing experts on the job. He said
the men who were capable didn't stay
long.
Senator Smoot (Rep) * Utah said
"The real danger is t.iat these men
get training in the revenue bureau
then go out and help big firms evade
tax payments"
Doctor Adams said that might be
true to some extent, but that he knew
"of one man who left the bureau a
wear ago whose resignation cost the
government millions Of dollars IN un-
collected taxes. for he was an execu-
tive with an expert knowledge of the
work"
The witness said this was typical
of the s1abor turnover" and that It
directly affected the tax collections
ana would continue to have more
direct effect on such collections unless
fay laws were smplified.