The Washington times., 1920-04-21
SO[D|ERBONUS
SPLlTS.G. 0..P.:
Insurgency Develops Over Form
Of Grant and Special
4 Taxes Required.

'ths tate OF bonus legislation for
lex -Aeryice men hangs on the decision
of a x.scIs of House Republican
mem bers l.. be held tomorrow night
IhSuER ~ Y has developed In Re-
publlcan ks over the form OF bonus
TO be granted, and the character or
special taxes necessary to raise the
required money.
Majority leaders favor raising the
money by levying gross sales tax
on resales, or "turnovers," as well as
on the finsl sale. The charge Is made
that the proposed gross sales tax is
the nrst move OF big business to wipe
out the surtax on big incomes and the
excess profts tax. Otto Kahn, Nov
York financier, expressed the belief
that the proposed tax would be suff1-
Client to eliminate the others.
VIII he Extra Tax.
Republican leaders say, however,
that should a gross sales tax be de-
cided on in the caucus, 1t Will be In
I addition to all existing taxes. and viii
be sufficient only to meet the bonus
demand, and will be repealed at the
end Of the year in which the bonus Is
to be paid. '"' s-
The plan practically agreed on by
the majority of House Republicans
embodies an elective bonus; S1.25 o
day cash bonus for enlisted men after
60 days service: or home aid, land set
tlement, or vocational training. The
cash bonus would require $500. .00O.-
900; with the other features 1t might
reach $4,000. 900 900. II Is estimated.
1t Is estimated that gross sales
tax OF one half of one per cent would
net slightly over 81 .00O, ,000, 900; and
one per cent, 1000, 900 900.
Income Tax Heavy Enough.
Treasury experts have agreed with
House financial leaders that it is not
practicable at present to supplant the
existing heavy excess profits and in
come taxes with any other form Of
direct tax, or to Increase the normal
. income tax, because OF the burden II
would place on persons of small
means. The Treasury revenues of
over $4,000. 100000 derived from the
surtax and excess profits tax. the lat
ter yielding $1,000, 900, 900, are neces-
sary to the solvency of the Treasury
1t is claimed. l.
Republican insurgents, led by Con.
gressmen Royal C. Johnson of South
Dakota. Borgan of Oklahoma, and
Towner of Iowa, are opposing the
gross sales tax, on the ground that 1t
will be passed on to the ultimate con-
tsumer, with increases by the manu-
facturer or producer. They are
urging a special tax on war profits to
cover the cost of the bonus.
Treasury, Department figures show
that 5000 individuals in the country
materially enlarged their incomes by
war profftsS Thet-dnsnrgentss :. claim
that the men whoyprofited In the war
should pay this demand of the oHss
rI.< f<.s = - M
Democratic leaders In the House,
led by Congressman Henry T. Rainey
of Illinois support this view.
Seek Te Prevent Clash: =
Determined efforts to allay the in
tense discord now exciting in Repub-
lican ranks over the entire soldier
bonus question were launched in the
House yesterday by Congressman
Frank w. Mondell, Republican floor
leader. and Congressman Good. chair
man of the House Committee on APP
prppriations.
Mondell expressed the opinion that
a bonus bill would be reported and
adopted at this session of Congress.
Leaders Sound Warning.
The discussion yesterday brought
forth the following lights:
I. Congressman, Good warned that
In an effort to please the soldiers,
the high cost of living would be in
creased and eventually the wrath OF
every man. woman and child would
be- brought down on those urging the
bonus legislation.
?. Good insisted that unrest would
grow through adoption of the bonus
legislation, that production would be
curta.led and suggested to the MEM
- II. Ill f.~lN l.
the way OF idleness Of colored la
borers and race riots IL negro soldiers
were granted $500 cash.
3. Mondell warned that it was
fantastic" to propose a tax upon
war profits. that it would be an i'm
possible scheme of taxation. that it
was made to play politics and that
taxation now was so heavy that 1egi-
innate business was being curtailed.
Democrats support Profits Tax.
Congressman Garner of Texas indi-
Gated the Democrats would propose
and support the war profits tax pro-
posal and gained enthusiastic ap-
plause.
s. Repeated suggestion came
throughout the debate that the Re-
publican caucus tomorrow night Will
be one of the most violent held dur
ing the session and that 1t may be
impossible to heal Republican
wounds-
8. The evident discord over the
question is SO serious that il ap-
pears impossible harmony can be
had in time to put through both
houses any bonus legislation during
this session of Congress. II the Con-
gressional recess is to be had in the
early part of June.
Tho temper of the House was plain
ly shown during this debate. Demo-
cratic members vigorously applauded
Gamers statement and some few Re-
publican Joined.