The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-02-22
BONUS TAX
ON COMMON
PEOPLE
President Hardin g
Proposes to Raise
Billions For Bonus
by Tax on Sales

soldiers bonus with z Selfctdi sdieS
tax or postpone the legislation.
was President Haedins's advice to-
day to congress.
Chairman Fordney Of the house
ways and means committee and Nc
Gambler of the state finance COM
naittee said they did not think
the bonus would be postponed, but
were silent as to q sales tax.
Leaders of the agricultural bloc
were outspoke;,. however, against
this tax and threatened to counter
with q program which Ifould IN
clude reenactment of the excess
profits and high income snrtaXes
and an increase in inheritance and
some other such taxes, This plan
also vas favored by some Demo-
cratic leaders.
Proponents OF q sales tax pro-
fessed to be confident that be-
caase OF the strong desire in both
the house and seaate to put
through the bonussbili at this ses-
sion a majority Of the members
would come to accept this levy rath-
er than see the bonus program de-
ieated.
Pending further reaction from
the country there seemed to be a
disposition on all SIDES 40 move
slowly. The presidents letter ad-
! dressed to Representative Fordney
was read at a joint meeting Of
Republican members of-the house
and senate committees dealing with
the bonus question. who agreed af-
Ter s6me> discussion TO leave the
matter athe hands Of the major
ity members OF. the house COM,
mittee.
In suggesting a general sales
tax as i:.the only comnnendable
plan" OF raising funds Mr.. Hard
ing said he believed the american
people would accept such q levy for
this purpose, adding that it would
distribute the cost SO taat it would
be- borne by al of the people and
would not contribute but added
limculties to the problem OF re-
( ADJUSTMENT -s-e
II fscongress would not adopt such
a tax, the president wrote that 1t
wesld be wise tn let the legislation
go over until there Has situation
which would Justify the large out
lay" Calling attention that the ad-
n,inistcation was driving for large
ecouomies.'' pushing the disposition
OF surplus property and that It
has other transactions under con-
sideration which ought to prove a
great relief to the federal treasury.
Mr.. Harding added:
st is not consistent to enact leg
isiation in anticipation Of these
things but it would be prudent
plan to await the Developments and
/ can see in such q postponement
people are genuinely interested.
Copies Of the presidents letter
were made available to the house
and senate Immediately after the
delivery of the original to Repre-
sentative Fordney in the early af-
ternoon. There was brief open dis
cussion Of the communication in
the senate and none in the house
but it was the chief topic of con-
versatian in the cloak rooms OF
both houses.
Republican leaders generally
withheld comment. but Represen-
tatiye Garrett. Democratic leader.
and Representative Garner. rank
ing Democrat on the ways and
means committee. issued formal
statement in which they asserted
that there has been from the be-
ginning a purpose upon the part OF
the Republicans TO engraft the sales
rax system upon the country, SO
that there may be & gradual reduc-
ton OF the taxes on wealth.
Leaders generally. both Republic
can and Democratic. said it was
too early TO undertake any pre-
diction as TO whether if tn" issue
finally came down TO that. the
bonus bill with sales tax provis-
ion would be defeated.
The text Of the presidents letter.
which was addressed to Chairman
Fordney of the house ways and
: means committee. follows:
In accordance with the promise
made TO yourself and your aSSo-
ciateS on the senate and house COM
mittees. charged with the response
bility OF formulating proposed bo-
nus legislation. have carefully
looked into the program OF taxa
ton. which has been suggested. In
addition thereto have made in
ouirv into the feasibility of issuing
either short time treasury notes or
long time bonds to meet the f:nan-
cial obligations which the proposed
legislation will impose. 1t is not
possible TO commend 20 you either
OF the plans suggested.
1T continues to be my best
Judgment that any compensation
legislation enacted at this time
ought to carry with it the provis-
ions for raising the needed revc-
nues and find myself unable 10
suggest any commendahle plan
other than that Of general sales
tax. Such a tax will distribute the
cost Of rewarding the eX-service
men in such a manner that il will
be borne by all the people whom
they served and does not commit
the government TO class imposition