The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-09-03
URGE SALES TAX
To RAISE FUND
FOR PENS|ON|NG
Administration Is Considering
Plan as Substitute for Vet
erans' Bonus.
BY J. BART CAMPBELL,
International News Service.

A service mems pension plan as
substitute for the so-called soldiers
bonus is being consider by Admin
istration leaders in connection with
tax revision. s ~.
Sure to Be Strong Factor.
While the pension plan contem-
plated may not be worked out Inn
mediately, or may not be presented to
Congress until next year, IL In likely
to prove one of the determining
factors In whatever system OF taxa
ton is adopted finally to meet the
Governments estimated obligations
and running expenses during the next
and the following calendar years.
Administration leaders are suggest
ing that Senator Shoots plan for q
modified commodities sales tax In the
guise of manufacturers tax OF per
cent be held back as a possible means
of financing the pension plan when
the time is ripe for 1t.
The suggestion that the sales tax
might be used to raise revenue neces-
sary to provide ex-service men with
them is said by Republican Senators
closely associated with the Admins
tration to have been discussed with
President Harding by Secretary OF
the Treasury Mellon this week. --,
Secretary Mellon and Republican
House Leader Mondell are both cred
, tied with seeking to have the Smoot
plan deferred so that the Admins
| tration could fall back upon II when
IL is ready to put the proposed PEN
sion plan into operation.
Mondell Supporting Plan.
Mondell has spent considerable time
lately with Republican members Of
the Senate Finance Committee In
: fostering the idea, which Is said to
have the Administrations indorse-
ment, and Mellon Is expected to take
Il up with the full committee when
he discusses tax revision with II next
Thursday.
It also became known today that
| the Smoot plan is to be carefully
| considered by the committee before
completing its substitute for the
House revenue revision bill, which
1t has rejected.
Whether the bill will embody some
| form Of q sales tax Is still an open
question with most Of the committee
| members, II was said today, and what
ever decision they reach regarding II
probably will depend upon Senator
| Smoot. ......-'
! nNeH ftepuDHCan SENATORS VINO
have opposed the sales tax IN the
past admit they would be inclined
to consider its adoption favorably II
they can be shown that IL would not
result in taxes being pyramided in
the various stages from producer to
consumer. ..
They also explained that II the
Smoot plan can be demonstrated as
sure way Of helping to simplify
the present complicated taxation sys-
TEN they certainly will entertain no
objection to its being incorporated in
whatever revenue revision bill is
finally agreed upon, 1t can at least
be tried out. they said.
Sales Tax Wins support.
Since Senator Shoots announce
ment Of his tax plan, an elaboration
of the sales tax idea, he and other
Republican members of the Senate
Finance Committee have been de-
luged with messages in commenda-
ton OF It. Even Republican Sena.
tors who were unenthusiastic regard
ing II. said their minds are now
open" as to the merits claimed
for It.
The "openness" OF mind. coupled
with the Administration leaders sug,
gestion that the Smoot plan might
be well used later on as q possible
source of revenue for a service mems
pension plan, is construed by its
advocates az additional evidence that
the sales tar IDEA eyentualiy will