The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1920-12-30
COST Of BONUS
S2,300,000,00
Secretary Houston Estimates
Cost of Aid Measure.
GIVES FIGURES ON 4 PLANS
Presents Report to Senate Committee,
Declaring That Legislation Would
Add to Tax Burden-Body Ad
journs Without Action.

Washington, Dec. 27.-Passage of
the soldiers bonus bill would cost the
government approximately $2,3OO,OOO,-
900 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, relterat-
ing Il statement made before the COM
mittee last week that the treasury
ought not to be called upon to assume
any additional burdens.
While Mr.. Houston said It was i'm
possible TO compute accurately the eX-
act cost of each of the four optional
aid plans, he believed the estimate sub
mitted was substantially correct. Land
settlement provisions OF the bill con-
tain so many uncertainties, he added,
that the cost entaled by them could
only be guessed at.
Estimates Cost of Four Plans.
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,OOO,
Insurance provisions, S4,534, 900,
Vocational training aid, S1,SS0,OOO,-
900.
Farm and home development, ST.
SS0,000000.
AS the plans were optional, the sec
rotary 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-
mated cost of $2,300,000,000
The treasury secretary professed to
be against a wall" as to methods of
obtaining revenue to meet the outlay
that would be required if the bill were
enacted. He called the committees
attention to the suggestions for new
taxes contained In his annual report,
but explained that these We're men
toned only for the information of con-
,gress and without any sort of recon-
mendatiOuS.
He did not attempt to discuss the
various tax suggestions, asking the
committee to near DR.. T. 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 tax receipts was
to that extent becoming more diff
cult
In addition TO the difficulties thus
confronting the treasury, Doctor
Adams declared the internal revenue
bureau faced another problem in keep
ing experts on the job. He said
the men who were capable didn't stay
long.
Senator Smoot Rep.J of Utah said;
''The real danger is that these men
get training in the revenue bureau
then go out and help big firms evade
tax payments"
Experts Don't Stay Long"
In addition to the difficulties thus
confronting the treasury, Doctor Adj
ans declared the internal revenue bu.
reau faced another problem in keep
Ing experts on the job He said the
men who We're capable didn't stay
long.
Senator Smoot (Rep) of Utah said
1.-THE real danger is that these men
get training in the revenue bureau
then 90 out and help big firms eyade
tax payments
Doctor Adams said that might be
true TO some extent, but that he knew
'of one man who left the bureau
year ago whose resignation cost the
government millions of dollars in I'M
collected taxes, for he was an exeCu-
tive with an expert knowledge of the
work.
The witness said this was typical
of the Labor turnover" and that It
directly affected the tax collections
and would continue TO have a more
direct effect on such collections unless
tax laws were simpIified
Senator SmoOt said all those diff
culties could be avoided if a revenue
law which "the average man can I'M
derstand" were passed by congress.
The committee adjourned without
setting a date for further hearings.