Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-02-10
TAX SOURCES
FOR BONUS Are
CUT TO EIGHT
Gasoline, Automobiles, Bank
Checks and Tobacco In
cluded in List
RAISE ADMISSIONS
Assessment of Five Cents on Each
Ten Dollars in Real Estate Trans
fers Also Named.

Washington, Feb 10.-The field of
possible soldiers bonus taxes virtual
" was narrowed yesterday to eight
sources by the subcommittee of the
Republican members of the House
Ways and Means Committee dealing
with the tax problems.
These sources were stated as fol-
lows:
a gasoline consumption tax of
possibly cent gallon.
A license tax on automobiles OF
about 25 cents per horsepower.
A stamp tax on bank checks at
about | cent for each check.
a tax on real estate transfers at
the rate Of about ) cents on each
$40 involved.
Increased taxes on admissions
where the sum paid exceeds %
cents.
Increased fax on cigarettes.
Increased tax on tobacco.
Increased documentary stamp
tax.
Representative Longworth, of Ohio,
acting chairman of the subcommittee
in the absence of Representative Ford
ney, said there was little sentiment
for any increase either in the first
class or Second-class postage rates,
hut added that there had been some
discussion Of an advanced parcel post
rate.
The bonus taxes will be temporary,
Mr.. Longworth said, extending over
period of three years, and will be de-.
signed solely to take care of the cash
payments to be made to former service
men during the two and one-half years
beginning January !, 1923. 1t was ex-
planned that the cost Of the other four
options to be included in the bonus
measure would be spread over ~
years and would not begin to be serl-
Gus charge against the Federal Trea-
surv for several years at least.
Members of the subcommittee -tig-
ured that on the basis of estimates
furnished by Treasury, experts the
S350.000,000 yearly needed for three
years for the cash payment could be
obtained from the eight sources out
lined. Exact rates in each case remain
to be fixed, but the subcommittee ex-
poets to have the entire program COM
pletcd by Saturday. 1t then will be
passed unon by the majority members
of The Ways and Means Committee
and under present plans will be sub
mitted in turn to Republican members
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
tn have been in favor of imposing
the highest rate in the case of the
transfer of capital stock and bonds.
The figures suggested was one-tenth
of per cent on all transfers. whether
original or subsequent. The present
tax is onc-'wcntieth of ! per cent, in
the ease Of the original transfer and
onc-tifticth of ! per cent, on each sub
scnucnt transfer.
The suggested increase in the taxes
on cigarettes is estimated to yield
S25000.000. while that on tobacco
would yield an additional S5,000.000.
In the case of admissions the existing
rate of 10 per cent. may be doubled
where the charge exceeds % cents.
REPRESENTATIVE LOngworth said that
by spreading the taxes over eight diff
fcrent sources The burden would be
fairly well distributed among the peo-
rlc and yet would not fall particular
" heavy upon any one class. He
thought also that this plan would re-
suit in the minimum of interference
with the Improvement of business con-
ditions.