Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-27
Declares Aid for Soldiers Will
Mean Added Burden in
Way of Taxes.
THINKS TREASURY SHOULD
| NOT ASSUME OBLIGATION
Claims Suggestions for New Reve-
nue. Outlined in Report Were Only
for Information of Congress.

Passage Of the soldiers bonus bill
would cost the government approx
mately $4,000. .oeo. 900. Secretary Hous-
ton estimated today in testimony be
lore the Senate finance committee
considering the soldiers aid measure
The Treasury Secretary declared
enactment Of the bill meant An added
burden in the way OF taxes. reiterat-
ing statement. made before the
committee last week. that the Treas
ury ought not be called upon to as
sumo any additional burdens.
While Mr.. Houston said It was i'm
possible to compute Accurately the
exact cost of each OF the four optional
aid plans, he believed the estimate
submitted was substantially correct
Land settlement provisions OF the
Dill contain 30 many uncertainties
he added. that the cost entailed by
them could only be guessed at.
Assuming that ali Of the men
would avail themselves Of one OF the
four optional plans. Mr.. Houston
estimated the cost OF each Of the
plans as follows:
Adjusted service pay. s1.s42. zoe. .ooe
Insurance provisions. $4,534, ,o0o, 900
Vocational training aid, $3.50, ,0oe.
600.
SSo,ooo.oee
Sees q ~Walr, Ahead.
As the plans were optional, the
Secretary said. the choice of the men
would not be confined to any one OF
them, and allowing for the various
selectives. he arrived at his total
estimated cost of $e. .see. .oeo, goo.
The Treasury Secretary professed
to be against q walr' as to method.
of obtaining revenue to meet the out
lay that would be required He called
the committees attention to the Tsug-
gestions for new taxes contained in
his annual report, but explained that
formation of Congress. and without
any sort OF recommendations.
Secretary Houston urged upcn the
committee the necessity Of granting
some increases in salaries to Officers
Of the government holding responsi-
taries Of the vkrious departgaente-
He pointed out hat fh1ee Ae8 n,es
holding down these responsible posi-
tion0 who could leave the governinent
service and receives salaries of $3S;00e
OF more In private employment Many
He did not attempt to discuss. the
various. tax 8 .gestions asking the
committee to lear Dr. r. s. Adams
Treasury economist and..tax expert.
who gave a comprehensive resume
of the tax situation, referring fire.
quently to Secretary Houston's dis
cussion Of the question in his an
nual report. He declared the Treax
ury was daily seeing new evidence OF
further drying up OF revenue
sources, adding that the task of com
putting tax receipts was to that ex-
tent becoming more difficult.
Preblen to Keep Experts.
In addition to the difficulties thus
confronting the Treasury. DR.. Adams
declared, the internal revenue bureau
faced another problem in keeping ex
perts on the job. He said the men
who were capable didn't stay long.
Senator Smoot, republican. Utah
said: 'NThe real danger is that these
men get trai ming in the revenue bu-
reau, then go out and help big firms
eyade tax payments"
Or. Adams replied that this might
be true to an extent, but that he kne "
''of one man who left the bureau q
year 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 that was typica,
of the tabor turnover and that it
dfrectly affected the tax collections
and would continue to have a moro
direct effect on such collections un-
less tax laws were simplified.
Senator Smoot said all those diff
culties could be avoided IL a revenue
law which The average man can un-
derstand" were passed by Congress.
The committee adjourned without
setting a date for further hearings.