Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-27
PUTS BONUS COST =
AT 's2,a)D,0DO,DQO
Houston Declares Bills Enact
ment Would Mean Added
Burden in Taxes
TREASURY AGAINST WALL"
nv the Associated Press

washington, Dec. 27.--Passage OF
the soldiers bonus bill would cost the
government approximately 81, 800, ,0oO,- :
600. Secretary Houston estimated today
before the Senate finance committee
considering the soldiers aid measure.
The treasury secretary declared en-
actment Of the bill meant an added bur-
den in the way Of taxes, reiterating q
statement made before the committee
last week that the treasury ought not
to be called upon to assume any addi-
tional burdens,
While Mr.. Houston said Il was i'm
possible 70 compute accurately the exact
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 80 many uncertainties, he added !,
that the cost entailed by them could
only be guessed at. -.
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 serv-
ice pay, 81 .342. 900 900; insurance pro. +.
visions, Al, ,634 900 900; vocational
training aid, 81 $50. .000. 900; farm and
home development, 81 $50, 900 900.
against WALL" lie Says
As the plans we're optional, the sec.
rotary said the choice of the men would
not be confined to any one of them and
allowing for the various selections he
arrived at his total estimated cost of
s.. 300 ,O0O, 900.
The treasury secretary professed to
he against q wall as to methods OF
obtaining revenue to meet the outlay
that would be required IL the bill were
enacted. He called the committees at
tention to the suggestions for new taxes
contained in his annual report, but ex-
planned that these were mentioned only
for the information of Congress and
without any sort of recommendations
He did not attempt to discuss the
various tax suggestions. asking the com =
mittec to hear DR.. L. s. Adams. treas
ury economist and tax expert, who gave
comprehensive resume of the tax sit
uation. referring frequently to Secre-
tary Houston's discussion of the ques-
ton In his annual report. He declared
dence Of further drying up of revenue
sources, adding that the task of com d.
putting tax receipts was to that extent
becoming more difficult.
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.
Resignation Cost q. 8. Millions
Senator Smoot said. ''The real danger
is that these men get training in the
revenue bureau, then go out and help big
firms evade tax payments.
DR.. Adams said that might be true
to some extent, but that he knew "oi
| one man who left the bureau year
ago whose resignation cost the gov
ernment millions of dollars in uncol-
lccted taxes, for he was an executive
with an expert knowledge Of the work. y
The witness said this was typical Of
the labor turnover and that it di
rectly affected the tax collections anC
would continue to have a more direct
effect on such collections unless Ia,
laws were simplified.
Senator Smoot said all those difficult
ties could be avoided IL revenue Law
which the average man can under
stand" were passed by Congress.
The committee adjourned without set.
ting a date for further hearings.