The herald and news. [volume] (Newberry S.C.) 1903-1937, 1922-02-14
EIGHT SOURCES
FOR BONUS TAXES
FIELD HAS BEEN NARROWED
DOWN
Discussion Thus Far Has Been More
o. Less General, Says
Longwcrth

o. Less General, Says
Longwcrth
The State.
Washington, Feb. 9.-The field OF
nossible soldiers bonus taxes virtual
" was narrowed today to eight sour
ccs by the subcommittee OF the Re-
publican members of the house ways
and means committee dealing with the
tax problem.
These sources were stated as fol-
lows:
A gasoline consumption tax OF pos
s:blv one cert gallon: license tax
on automobiles Of about % cents rer
horse power; stamp tax on oahk
checks at about one cent tor each
check; a tax on real estate transfers
at the rate of about five cents on each
$40 involved, and increased taxes OIL
admissions where the sum paid ex-
ceeds 25 cents, cigarettes, TOBACCO
and documentary stamps.
Representative Longworth OF ONO:
acting chairman of the subcommittee
in the absence of Representative
Fordney. said there was little sentl-
nent for anv increase either IN Ihe
fret or second class postage rates. but
added there had been some discus
sion of an advance in the parcel post
rates.
+ Over Three Years
The bonus taxes will be temporary:
Mr. Longworth said, extending over
neriod of three years and will be
DESIGNED solely to take care OF the
cash navments to be made to former
service men during the two and one
half years beginning on January l.
1928 It was explained that the cost
Of the other four options to be includ-
ed in the bonus measure would be
spread over 20 years and would not
begin to be serious charge against
the federal treasury for several years
at least.
Members of the subcommittee figur-
ed that on the basis of estimates fur
nished by treasury experts the $780,
100000 yearly needed for three years
for the cash payments could be OBJ
tanned from the eight sources out
lined. Exact rates in each case re-
main to be, fixed but the subcommlt-
tee expects to have the entire program
completed by Saturday. 1t then Will
be passed upon by the majority mem
bers of the ways and means commit
tee and under present plans will be
submitted in turn to Republican mem
bers of the senate finance committee
and to President Harding.
Graduated increases in the various
kinds of documentary stamp taxes
now in force were discussed today IN
the subcommittee with sentiment said
to have been in favor of imposing
the highest rate il: the case of the
transfer Of capital stock and bonds.
The figure suggested was 1-10 OF 1
per cent on all transactions whether
original or subsequent. The present
tax is 1-20 of l per cent in the case
of the original transfer and $50 of l
per cent on each subsequent trans
fer:
/ The suggested increase in the taxes
on cigarettes is estimated to yield
s25,O0O,OOO while that on tobacco
would yield an. additional S5,O0O,0OO.
In the case of admissions the exist
ing rates of 10 per cent may be dou-
bled where the charges exceed %
cents.
Minimum of Interference
Representative Lnogworth sad that
bv spreading the taxes over eight diff
ferent sources the burden would be
fairly we'll distributed among the peo-
pie and yet would not fall particular
. ly heavily upon any one class.
He thought also that this plan would
result in the minimum of interference
with the improvement of business
conditions.
While Mr.. Longworth's committee
was dealing with the tax problem the
other subcommittee under the direc-
ton of Representative Green of Iowa
began work on the bill. 1t was said
that no changes would be made in
the five plans as written in the orig