The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-29
BONUS | SBlL.yOfES
FACES SENATE IN
TAX AMENDMENT
Reed Proposes Excess
Profits Levy Be Paid
To Soldiers.

There is going to be an immediate
showdown in the Senate on the
question of the soldiers bonus after
ALL
After pigeonholing the bonus bill
several months ago the Senate woke
up with a start yesterday to find it.
self facing q vote on the issue with
In the next day or two.
Senator James A Reed, of Mis-
souri,, Democrat, who is opposed to
the repeal of excess profits taxes
on corporations as Endorsed by the
Republican majority of the Senate
offered an amendment to the pend
ing revenue bill which would retain
the existing excess profits taxes
and use the money derived from the
source for payment Of the soldier
bonus.
AS a part of his amendment Mr..
Reed presented the entire soldier
bonus bill in the exact form re-
ported to the Senate by the Finance
Committee and championed by the
Republican leaders of that commit
tee until President Harding ad-
dressed the Senate on the advisa-
bility of postponing such legislation
and asked that the bill be recon-
mitted to the committee whence it
came The course recommended by
the Chief Executive was taken
without delay E..
Senator Reed presented his
amendment on the eve of his de-
parture for the American Legion
convention which is to be held in
Kansas Ciey in his home State, and
where 1t is expected the course of
the present Congress in dealing
with soldier bonus will be the sub
ject of considerable debate. The
convention begins Monday.
VIII Address Legion Men.
7 am going to meet a large body
or these soldiers in two or three
days" said Senator Reed in a speech
TO the Senate. II am going to dis
cuss the question OF their adjusted
compensation: and I am going to
tell them the truth about this mat
ter; that the reason they could not
have the adjusted compensation was
because it was proposed to take
the tax OF the profiteers. and that
the same Senate committee that is
now sitting like a .coroner's jury
over the dead body of their hopes
reported out a bill to take s75,000,-
900 off the corporation capital tax:
enjoy incomes above S6S.000 year;
and S450.000.000 off the gentlemen
who are reaping profits above 10
per cent. and that is the reason they
could not get compensation; and
that the men who made the profits
are the men who stayed at home
while they went abroad to lose
their health. to lose their jobs and
some of their brothers to lose their
lives"
Senator Reeds amendment fell
like a bomb in the Senate. No one
had anticipated 1t. and he gave no
tice OF his intention to force it to
vote at the earliest possible moment
He said last night that he hoped to
get a roll call on IL either today or
Monday, so that he may leave for
Kansas City In time to keep his
engagement at the American Legion
Convention. But, IL the Senate be-
comes involved in bonus contro-
versy, it is generally felt that many
days will be spent in its discussion.
and that the passage of the new
revenue bill. which Senator Boies
Penrose, of Pennsylvania, chairman
of the Finance Committee, is trying
to bring about within the next few
DAYS, will not be possible.
Senator Reeds amendment would
require the payment by the govern
ment Of 81 day to veterans of the
world war while serving in the
United States, and SIPS for each
DAVIS service abroad. He retains
the provision of the bonus bill which
limits the amounts to be paid to
any former service man to $500 for
service in the United States, and
s625 for service abroad.
Payments to Begin Jan. 1, 1923.
The excess profits taxes which Mr.
Reed would retain to provide for
that expenditure are 20 per cent on
the net income of corporations up
to 20 per cent of their invested
capital, and 40 per cent on net in
comes in excess thereof. The pay
ment of bonuses would begin jan
uary 1, 1928, and the tax to make
these payments possible would be-
come operative January l, 1922.
Senator Reed contends that the
s45O. 100000 which the government
will lose from excess profits taxes.
II they are repealed as proposed in
the new revenue bill as it now
stands before the Senate, for pas
, sage, would provide theg money
necessary. to pay the soldier bonus.
C-o, - no--or