The Washington herald., 1922-02-18
FARMER BLOC
Lines UP FOES
OF SALES TAX
Seventeen Republicans
Said to Oppose Presi-
dents Plan.
MAY DEMAND LEVY
ON EXCESS PROFITS
Chairman Fordney Says
Bonus Bill Will Be
Enacted.

The Senate agricultural bloc Is
organizing against a sales tax for
bonus payment.
Republican members of the bloc
will meet next week Then they
expect tosrecord formal opposition
to the tax.
Leaders believe, an effort will be
made to re-enact the excess profits
tax and high surtax rates. as a sub
stitute for the sales tax. II this
fails il will be suggested that the
Treasury issue short-time certifi-
Gates, to be absorbed by interest
payments which foreign govern
ments are expected to make on their
debts to the United States.
The President declines to state IN
advance whether he would veto a
bill raising funds in this way.
Opposition Lines up II.
An informal canvass, made by one
of the block leaders yesterday
showed at least seventeen Repub-
licans will support the program of
opposition And the canvass was
conducted only among Senators
from the Western States. The meet
ing Is made to include only Repub-
hcans. because the support of the
Democrats, with the possible ex-
ception of two or three votes. is
considered assured.
On the surface. the canvass indi-
Gated that it is impossible for a
sales tax to pass the Senate. The
seventeen Republican votes. united
with tbjrty-five Democratic votes.
would give fifty-two, or three more
than a majority in opposition.
The bloc program. IL carried out.
cnntemplates regulation of a tax
measure which the President said
was the only one available. 1t in
wolves also the revival of taxes
aGaingst the Presidents wishes, or
further borrowings. to which he is
just as strongly opposed
object to Consumption Tax.
The objection OF bloc Senator'S TO
the sales tax. broadly. is based on
their belief that however applied
1t is tax on consumption.
T. C. Atkeson. Washington repre-
sentative of the National Grange.
has declared that farmers are
strongly opposed to the sales tax,
or any form of direct consumption
tax, for the soldier bonus. or for
any other purposes. The sales tax
IS a deliberate effort to shift tax
burdens from those best able to pay
to those least able to pay" he SAID
The Grange has suggested an
excess profits tax for the bonus.
Should that be inexpedIent, a tax
should be levied which will not add
% the lost of living of millions with
limited incomes"
Says Bonus Bill VIII Pass,
Chairman Fordney. during the
course of debate yesterday, de-
clared that a bonus bill will be re-
ported ont by the House ways and
Means Committee within ten days
and that it will be enacted. This
declaration brought applause from
Republicans, and cries of no, no."
from the minority.
We are using every honorable
effort to prepare the bill to which
House Republicans will agree" he
said. IF they do not, We want
the Republican members 10 direct
us how to prepare the bill and how
TO bring it in hete for final action. a"
Representative Frear, Of wisron-
sin, leading opponent of the sales
tax, has suggested four substitutes
for tho committee consideration.
They are: Payment by.ecvnomies:
re-enactment of the tfeaturss
of the original bonus BIN which
ere similar to the eight-point plan:
:e-enactment of the excess profits
tax; issuance Of temporary Treas
ury certificates.
Leaves Details to Congress-.
President Hardings position is
that it is not up to him to indicate
what kind of a sales tax should
be imposed. or how it should be
imposed. He believes a "produc-
tive sales tax" -'ould be the least
Durdensome. most productive, and
easiest to administer. Leaders have
calculated it would bring in $780,
100000 under l per ceht levy.
The committee is considering the
possibility of limiting the amount
of cash payments Immediately pay
able under the bill, and stipulat-
ing that these should go only TO
those in actual need. Certificates
would be issued where cash was
not paid
The committee questioned John
Thomas Taylor. representative of
the American Legion. and Richard
Seey1e Jones, representative of the
Veterans of Foreign Wars. on this
question yesterday. Veterans or
ganizations. they said, would en-
deavof to persuade members to
adopt other plans than cash pay
ment
Taylor and Jones said the vet
Grams would oppose abandonment
of, cash payments. >since their con-
ventions were on record in support
Of the five-fold bill as now pre-
pared.
Organized labor has added its