The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1920-04-22
DEMOCRATS HAVE
PLAN FOR BONUS
FOR SERVICE MEN
House Ways and Means Com
mittee Members to Propose
Money Necessary Be Raised
by Tax Upon War Profits.


Washington, April l9.-Democratic
members of the louise ways and
means committee will propose to the
House thai the money necessary to
pay Il soldier bonus be raised through
the imposition of a tax upon war prof
it's.
Announcement by republicans that
the money would be raised through a
tax of y of l per cent, on sales, but
that this tax would be SO applied that
the would actually pay a
tax of from 2 to 10 per cent. and pos
sibly in in addition an added profit for
the producers brought the warning
from Representative Henry T. Rainey,
of Illinois, a democratic member Of
the ways and means committee, that
he would make a fight on the floor of
the House for his plan to tax war
profits.
Representative Rainey says no one
will admit wishing to make money out
OF the war, but that the records show
that 5000 persons made $4,000, 600, 900
and that these SO, 200 persons had an
income of more than $4,000 a year
each, prior to the war.
He proposes that the government
take one-aalf Of the profits above the
500, 900 made by these men during the
war. In other words, if a man made
$50, coo during the war and $4,000
prior to the war, Representative
Rainey would take one-half of the
10000 or $4,000.
Representative Rainey is aSSured
the support of some republicans who
have fought for the bonus and who
have defied the republican steering
committees edict that there should
not be d bonus.
Representative Royal c. Johnson,
of South Dakota, will fight the tax
idea and will make a fight for the
Rainey plan Of a tax on war profits.
Representative Johnson led the in
surgents in their fight on the steering
committee and will assist Represent
ative Rainey in trying to prevent the
imposition of a sales tax.
Tax Republicans Propose.
The republicans propose a tax of
u of l per cent be put upon each
turnover" For instance, they pro-
pose hat when an umbrella is sold,
a tax shall be paid by the purchaser
equal to " of 1 per cent on the cost of
the cloth, when sold by the producer
to the manufacturer. The steel ribs,
when manufactured, would be taxed
in like amount. The handle would be
taxed, and SO on, and then eventually
the tax again would be applied to
the finished product. So that instead
of paying X Of 1 per cent, the con-
sumner really would pay from 6 to Z
per cent.
But the vicious feature about this
tax is that it is another form of in
direct taxation. The would
never know what the actual cost of
production was. so the manufacturer
could d the hof / per cent. tax and
then add extra profit to that and so
on down the line so hat the tax of
b or Z per cent. not only would be
passed along to the SUI but in
addition a profit for the manufacture
er which would be equal to two or
three times the tax.
In other words, the consumers not
only would pay the $1,000, 000, 900 or
more to the soldiers but might, un-
DER the republican propose, a
other 81, ZOO, 900 900 or more to profit
GERS who would be encouraged to take
advantage of this indirect tax.
What Records Show.
Democratic members have never
proposed an indirect tax, but have
suggested that if the republicans are
determined to apply the tax idea, it
should be so applied that the con-
sumner may NOW just what he pays.
Ihe final sale to the consumer would
pee taxed. The retailer who sold the
umbrella would have to mark it with
a plain figure. and then would add
the Y of l per cent. tax. In this way
no opportunity would be given for
profiteering.
The records show that $4,000 per-
sons made $4,000, 600, 900 during the
war, that these persons were million
aires through their pre-war incomes
n that one-half of this s3,o00,0 0o, 900
will be sufficient to meet our needs in
the payment of this soldier bonus and
that its loss to the mi~llionaires would
not cause them any suffering. And
in addition, no one wants to make
n profit out of war, so these men
would not object" said Representa-
tive Rainey, who unless prevented by
~ SpeSlaA fepuolIcaH rune, WhlCH
a been suggested though not yet
formulated, will offer his proposal in,
the House.
If Johnson. Fairfield and Hickey
n the other 20 OF more republicans
join with him. he may win. But they
will have to overcome stubborn OPP
position for there is at least one
prominent republican on the way and
means committee who is said to have
made millions put OF the war and who
has discouraged at every turn any
suggestion for a special tax to raise
money for the soldiers.