The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1922-02-24
CONGRESS ASKED
FOR SALES TAX
PRESIDENT HARDING URIC s
SALES TAX AS METHOD FOR
PROVIDING BONUS
Executive Believes American People
VIII Accept Levy for Veterans
And Thereby Not Burden
ReadJustment

MISUNDERSTANDING Harding in
formed congress Thursday he consid-
cred a general sales tax the only feas-
Bile method of raising funds for SOL
liers' bonus.
The executive in letter addressed
to Chairman Fordney of the house
ways and means committee, and sug-
yested that unless congress saw fit to
enact a sales tax, passage of bonus
egislation should be temporarily post
poned
The text of the presidents letter fol-
lows:
I'm accordance with the promise
made to yourself and your associates
IN the senate and house committees
charged with the responsibility of for
inulating proposed bonus legislation, l
have carefully looked into the program
Of taxation which has been suggested.
In addition thereto, I have made in
curry into the feasibility of issuing
either short-time treasury notes or
long time bonds to meet he financial
obligations which the proposed legis-
lation will impose. 1t is not possible
to command to you either of the plans
suggested.
ut Is fully realized how great is
the difficulty which confronts the
congress In solving this difficult prob
lem. l am aware the strong senti-
ment in congress is In favor of this ad-
iusted compensation. / have spoken
approvingly myself, always with the
reservation that the bestowal shall be
made when it may be done without
such injury to the country as will null
lily the benefits to the ex-service men
themselves which this expression of
gratitude is designed to bestow.
1T e not an agreeable thing to sug-
gest that action be postponed again,
but frankly, l do not find myself fa-
sorable to the piece-meal payment
plan, which is manifestiy designed to
lvoid embarrassment to the treasury.
The long drawn out payments will not
lfford an effective helpfulness to the
;ervice men.
I'VE have no Serious problem in be-
ginning the allotments of public lands,
md the Immediate issue of paid up in
'urance. The real difficulty lies in
the payment of the cash bonus. Rath-
Or than provide that the maximum cash
payments shall extend over a period of
and one-half years, 1t would be
astiy better bestowal if we could
lwait the day when we may safely I'M
'ertake to pay at once in full, so that
he award may be turned 10 real adj
ntage.
''Inasmuch as the treasury is to be
allied upon to meet more than $4,000
10000 of maturing obligations in the
sixteen months Immediately before us,
Il is not possible to recommend the
ssue of several hundred millions of adj
iit'onal short time notes. Further ex-
,essive borrowings would likely undo |
Ill that has been accomplished in re-
adjusting interest rates and stabilz-
ng the financial world. both vitality |
essential to the resumption OF indus
rial and commercial activities.
Granting that 1t is not fair to op-
'ose any proposed plan without of
ering a substitute, let me repeat that |
believe the American people will ac- I
'ept the levy of general sales tax
o meet the proposed bonus payments
md we should contribute therby, no
dded difficulties to the problems OF
adjustment.
Il take IL that the ex-service men
are no less concerned than
theirs about the restoration of bust
ess and the return to abundant en-
loyment. Those of their wounded or
lex comrades who were impaired by
heir war service, are being cared for
nth the most liberal generosity the
alton can bestow. There are here
nd there exceptional cases of neglect
nd attending complaint, but we are
eeking them out and correcting with
II possible speed. II has not been pos
ible to meet all the demands for spec
Il disqualification but we are building
} that end, without counting the cost.
re are expanding four hundred mil
on dollars year in compensation,
and rehabilitation.
hese things are rected to reassure
on that such delay as viii enable
,ngress to act in prudence for the
'mmon good, will have no suggestion
manufactures or ingrattiude"