The Washington times., 1922-02-19
PLANNED
IN CONGRESSBY
BONUS HACKERS
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even IL a majority Of the House
should accept it." Capper said.
McNary Opposes Sales Tax.
II am unaiterably opposed to a
sales tax" said McNary. Il simply
cannot see my way clear to support
bonus bill, much as l favor a
soldiers bonus. which would pro-
vide what I consider a form Of
taxation which would add to the al
ready heavy tax burdens Of the
ultimate consumer.
It was pointed out that coupled
with thirty-six Democratic votes
against the sales tax in the Sen
ate but thirteen Republicans would
have to oppose a sales tax In the
Senate to insure its rejection.
II was reported that a conference
of Republican and Democratic Sen
ators already lined up against a sales
tax is likely to be had next week for
the purpose Of forming a bipartisan
anti sales tax bloc" to present a
solid front against such a tax. and
to insist upon it's elimination from
any bonus bill containing 1t which
may come to the Senate from the
House.
A bitter fight over the sales tax
in the Senate is regarded even by
Republican leaders as inevitable, and
Senators opposing the sales tax are
predicting freely that any sales tax
proposal is sure to be beaten in the
upper chamber. no matter what the
House may do with 1t.
A fight for the sales tax method
Of financing the soldiers bonus will
be launched before the entire Re
publican membership of the House
! Of Representatives In q party eau
Gus tomorrow night.
The caucus has been called to
consider a resolution directing the
House Census Committee to report
! the reapportionment bill that would
increase the size of the lower branch
| OF Congress from 43 to 46o mem
bers.
Advocates of the sales tax. back
ed by the Congressional delegation
| that went to Canada and studied
the operation OF the sales tax there
as the guests of WILLIAM Randolph
Hearst. have arranged, however, 10
open their fight in the caucus.
Resolution Is Drafted.
The Republican members Of the
House will be asked to vote for a
resolution putting the majority party
on record as favoring the sales tax
! for the bonus. The resolution has
been drafted and is ready for sub
mission. 1t provides for levying a
tax of one-half Of l per cent on two
turnovers. The first tax would be
collected by manufacturers. import.
ers and producers from the whole
| salers and jobbers they sell they
goods to. A similar tax would De
collected by the wholesalers and job
| bers from the retailers.
Advocates of this tax estimate 1T
would raise s4o0. 10000 annually.
which Is the maximum Treasury
experts have figured the bonus will
cost. Such a tax, it's proponents
argue, would be absorbed and would
not mean an additional burden upon
the taxpayer.
Many members Of the veterans
bloc in the House, which is COM
posed Of Congressman who served in
the world war. are supporting the
bloc forced consideration of the
sales tax movement. The veterans
bonus bill at this time. and their
support Is counted as a strong asset
by sales tax advocates.
The Senate Finance Committee and
the House Ways and Means Commit.
tee expect to complete their work
on the bonus bill and report it back
to the House Ways and Means Com
mittee before the end of the week.
| The completed bill will be referred
to another Republican caucus to be
called later. before II Is presented in
the House. Sales tax advocates plan
to carry their fight into the second
caucus and then to the House floor
II they are defeated in the caucus
Monday.
Plan Senate Fight Also.
The fight for the sales levy will
be renewed when the bill reaches the
;, Senate. in case the sales tax Is re-
jected by the House. Senator Smoot
of Utah. who led a fight last summer
for adoption of the sales tax as a
substitute for the present revenue
system, will offer the tax plan as a
substitute for whatever financing
provisions the House may adopt to
the bonus bill.
Nrrrn1u~~,IIycr