Arizona republican., 1922-02-10
SOURCES FOR
BONUS FUNDS
NARROWED To
EIGHT TAXES
Longworth Says Bonus
Taxes VIII Be Tempo
rary Extending Over A
Period OF Three Years
Republican A. p. Leased wire]

w WASHINGTON, Feb. 9-The field
of possible soldiers bonus taxes vir-
tually was narrowed today to eight
sources by the subcommittee of the
Republican members of the house
ways and means committee dealing
with the tax problem. These sourc-
rs were stated as follows: A gaso-
line consumption tax OF possibly one
cent a gallon, license tax on auto
mobiles Of about 25 cents per horse
power: a stamp tax on bank checks
at about one cent for each check:
tax on real estate transfer at the rate
of about five cents on each $40 in
Volved: and increased taxes on ad-
missions where the sum paid exceeds
% cents, cigarettes, tobacco and doc
umentary stamps. Representative
Iongworth of Ohio said there was
little sentiment of an increase either
in the first class or second class
postage rates. but admitted that
there has been some discussion OF an
advance in the parcel post rates.
The bonus taxes will be temporary,
Mr. Longworth said. extending over
three years. and viii be designed
solely to take care Of the cash pay
ments to be made during the two and
one-half years beginning Jan. j, 1928.
1t MdS HADidiflNO AidS tiiS SCot OAAeliN
other four options to be included in
the bonus measure would be spread
over 20 years and would not begin
to be a serious charge against the
federal treasury for several years at
least.
Members or the sub committee
figured that on the basis Of estimates
furnished by treasury experts the
$3.50 900, 900 yearly needed for three
years for the cash payments could
be obtained from the eight sources
outlined. Exact rates in each case
remain to be fixed, but the sub-com-
mittee expects to have the program
completed by Saturday. 1t then will
: be passed upon by the majority
members of the ways and means
committee. and under present plans,
Will be submitted in turn to Repub-
lican members of the senate finance
committee and President Harding.
Graduated increases in the various
kinds Of documentary stamp taxes
now in force were discussed In the
b-committee with sentiment said
to have been in favor of imposing
the highest rate in the case or the
transfer of capital stocks and bonds.
The figure suggested was one-tenth
OF one per cent on all transfers. The
present tax is one-tWentleth or one
per cent in the case Of original trans
fer and one -fiftieth OF one per cent
i'm each subsequent transfer.
The suggested increase in taxes on
cigarettes is estimated to yield $25.-
600 600. while that on tobacco would
yicld an additional $5,000000. In the
case of admissions the existing rate
of 10 per cent may be doubled where
the charge exceeds 25 cents.
Representative LongWorth said
that by spreading the taxes over
eight sources the burden would be
fairly we'll distributed.
While Mr.. Longworth's committee
was dealing with the tax problem
the other sub committee began work
on the bill. 1t was said that nc
changes would be made in the five
OPTIONAL plans as written in the orig
inal Fordnev measure, but that sew
seral alterations in some OF the ad'
ministrative features were planned.
One important change was made
today. the committee striking out th'
provision requiring the army anC
navy departments, before making
pavments to former service men. t.
ascertain and deduct any amounts
that might be owed the government
by the men growing out of their wa
service.