Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-30
INSTEAD
OF CUT, IN TAXES,
PRESENT OUTLOOK
Big Additional Levy Required
Under Soldier Bonus Bill
Framed in House.
BY DAVID LAWRENCE.

Taxation is going up-not down.
The republican party in Congress has
virtually decided that more is to be
gained by giving the soldiers of the
late war a bonus than would be lost
by refusing to make further cuts in
existing taxes or distributing the bur
den through the years of the next
generation.
The ways and means committee of
the House is in a tangle. A minority
OF republicans are opposed to new
burdens of taxation, but even with the
help of the democrats their strength
is not sufficient to prevent the pas
sage Of the bill in the House. Only
two barriers then remain-the Senate
and the President. If the House bill
were presented to the White House
today it would be vetoed. II it were
put up to the Senate in the form in
which it has been drafted. it would be
radically changed, but, on the other
hand. there would stiil remain addi-
tional taxes wherewith to raise money
for the soldiers, because Senate re-
publicans must stand by HOUSE re-
puhlicans in dQinE something before
the next election that will not alien
ate the soldier vote.
Perhaps the democrats would do
the soldier yuts has bAcome, like the
labor vote and the Prohibition vote,
too formidable for the
average congressman to withstand,
when .demagofue can
start campaign in opposition to him
In his district on that ground alone:
Bill Agreed Upon.
The ways and means committee,
both republicans and democrats, had
the new tax bill before them at their
Friday session. 1t had been agreed
q m a -
the night before and the plan was to
jam 1t through the committee in time
to report 1t to the House during the
day and thus have 1t ready for the
republican caucus Friday night.
The significant thing is that neither
soldier bonus differ in their senti-
mental feeling that something should
be done for the. soldiers OF the late
tangible. But getting
down to the bottom Of the whole busf-
ness one finds even the enthusiasts for
which the plan would put on the al
ready overweighted credit system of
the country. Those who favor the bill
say the nation can stand the extra
tax, and they point out that either a
sales tax on retail sales above $1,000
a month or retroactive tax on war
profits would hit only "the big fell
lows" But experience with the
vicious circles in the high cost OF living
has shown in the past year that the lerg-
er concerns merely tack the tax on to
their costs of production. and the
ultimate consumer pays the bill. So
many members Of the House who have
studied taxation are planning to 70
before their constituencies on a rec
ord of opposition to any class lepis
lation whatsoever, whether it be for
labor or soldiers or any other section
n hn
a minority.
The real truth is that il the ma.
jority OF the House believed the bill
just presented to the ways and means
committee had a chance of being
enacted into law they wouldn't rush
1t through so hastily. But the gen
eral FEELING is that the Senate will
emascuIate the measure and iron II
out. and that II it is still objection
able the President would probably
veto it. thus making it even more
advantageous politically to argue
that the republicans wanted 10 helm
the soldiers and the democrats didn't
IL IS TO be noted that of all the Ave
plans suggested whereby aid is to he
given to the soldiers. none of the ca sh
payment features is to go into effect
until next January. Thus il the SEN
timent OF the country in the next
election is adverse the measure can he
repealed without endangerinR the
chances of those republicans who
must depend on the soldier vote at
the next election.
Sections of Bill Approved.
Some of the features of the bill do
not involve an outlay of much money
and are in the main favored by demo-
Gratis as well as republicans. Voca
tional training Is one. home and farm
aid and the grant Of lands out west
all this is possible of accomplishment
with only few million dollars. vet
it gives the returned soldier oppor
tunity to make money. On the other
hand. the cash bonus based upon the
number of days the veteran was in
service would mean at least a billion
dollars more in taxes than IL the
new and complicated suggestion for
an insurance certificate should 20
1t is estimated that the cost would
be nearly $4,000. 100000. This estimate
may be found later to have been ex.
aggerated but several House mem.
bers insist that the new plan wouI6
knock the value out of tho war rtaL
insurance system itself.
The House of Representation !.
really playing politics. Tax errors
of the democrats helped to drive th.na
out Of power In 1918. but the repuhII
cans are so serenely confident III.
the top of the ticket will pull ,haa.
through next fall that they are s'mni,.
determined to pass a bonus bill 80
pass the buck to the Senate and ,ha
President. In the meantime. busin .s.
big and little.( may be furrowinr g..
brows trying to calculate what ths
tax burdens Of next year will be- h,.e
only the conservativism Of the Eensts