The daily times., 1922-01-30
BONUS| IS
COMING TO PUBLIC
IN BIGGER TAXES
so THINKS MR.. HARDING
Congress is Going to Pass a Sol
dier Bonus Bill and Then
the Question is Will the
President Veto it; From the
First MIR. Harding Has OPP
posed Such a Measure.
so THINKS MR.. HARDING
(By David Lawrence.)
Copyright 1922 by The Daily

TimeS.)
Washington, Jan. 28.-Congress is
determined to enact a bonus bill.
The situation is truly alarming for
no comprehensive plan has yet been
offered by anybody whereby the
funds can be raised without adding
to the cost of living and the already
numerous burdens under which
American business is struggling.
Senator McCumber, chairman of the
Finance Committee, favors a sales
tax for the first year and expects the
bonus to be financed during the
second year out of the proceeds of
the payments of interest by the al
lies on the war debt. Chairman Ford
ney of the House Ways and Means
Committee has more or less the
|same idea.
The truth of the matter is nobody
believes any money will be forthcom-
ing from the allies during the second
year and members of congress know
perfectly we'll that by law any pro-
ceeds from the allies must go toward
paying the principal and interest on
Liberty bonds. But the gossip is that
if the American people are told that
sales tax is to be enacted for only
one year, the new burden will be
easier to impose. Then when the
sales tax is working and the people
have gotten accustomed to the sales
tax and it becomes evident that no
money can be expected from the al
| lies a simple resolution extending the
sales tax indefinitely would be adopt
| ed.
The sales tax would be imposed on
about twenty four articles including
clothing, foodstuffs and manufactur-
led products. 1t will be paid at the
lsource by the manufacturer or pro-
ducer and the consumer will feel it
| in increased prices for the necessi-
tiles of life. Thus the soldier who
gets the bonus will be able to buy
much less for his money than he can
now without the bonus.
| But this is political year and
lcongressmen think the soldiers want
1.-THE cash irrespective of whether il
is good or bad economics. Represen-
Itative Frear of Wisconsin, a republi-
lean ways and means committee mem
tber, however, has spoken boldly
what many republicans themselves
know, namely that a sales tax may
lsweep the entire republican party
|out of power in the next congress
THE wiser ones are already scared fol
Ithey have heard of the discomfort oi
1.-THE country that congress didn't re-
|duce existing taxes sufficiently and
lnow to put on more taxes to furnish
money for a soldier bonus would bt
Ito build even higher the funeral
lpyre.
Senator McCumber answers mos
of the criticism by saying the esti
mates as to what the bonus woult
cost are grossly exaggerated and
that it wouldn't cost the countr,
more than $350,000,O00 to $40o,
100000 the first year. Secretary Mel
lion, however, has done lot of clos'
figuring and has made enough inquir
lies as to the psychology of the re
turned soldier to know that out O
the various forms of soldier aid from
Igrants of land, vocational training
ipaid up insurance certificates pay
liable at death and on bonuses of fift!
dollars every three months, the av
, lerage soldier will take the cash. 1t j
; argued of course that II everybod.
took cash the total government ex
: Ipenses would be less than under an,
: other plan for the whole thing woul'
be over with sooner and the big ad
ministrative expenses in vocationa
l training and land aid would be re
: duced to minimum. But. while thi
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