The Washington herald., 1922-02-12
FIGHT ON SPECIAL
TAXES FOR BONUS
STRS PRESIDENT
Executive May Drop Part
Of the Program for
Levies.

Public protest may force Presi-
dent Harding to throw overheard at
least a part of the special tax pro-
gram to raise money for the SOL
diers' bonus. 1t was forecast last
night.
The President Is said to be
alarmed at the volume Of messages
pouring in from every corner of the
country opposing the proposed
special taxes, and II was indicated
he may feel called upon to act to
prevent what now appears will re-
suit in a reaction against the Re
publican party. because OF the
bonus levies.
Senator Smoot' and Chairman
Fordney. OF the Ways and Means
Committee, were in such marked
disagreement over the stock and
bonds provisions that they. with
other members of the committee
took their troubles direct to Presi-
dent Harding.
Indications were that the special
tax program would be taken to the
President for his approval about
the middle of the week. When they
quit work yesterday. the committee
of Republican members from the
Senate Finance Committee and the
House Ways and Means Committee,
who are working out the bonus
taxes. announced that they were in
complete agreement and would be
able to finish up tomorrow or Tues
day.
boomerang. Say Democrats.
The committees scheme will be
submitted to the President and then.
IL he approves II, to a caucus of
House Republicans. before II is ta-
ken up for action on the floor Of the
House. Should Mr.. Harding send
the tax program back to Congress,
suggesting changes. an indefinite
delay in enactment of the bonus
would result.
Democratic members of the House
Ways and Means committee are
claiming that a bonus BIZ the spe-
cial taxes tentatively agreed on,
Will prove a boomerang that will
cost the Republicans many an cleo
tion contest next fall.
Every one of the special taxes
the Republicans have picked is Just
that much of a contribution to the
Democratic campaign fund" said
Representative Garner, ranking
Democrat on the Ways and Means
committee.
The Republicans themselves are
afraid of the bonus and would like
to have the President step in and
kill 1t again, as he did last year
il they were not afraid of the SOL
dier vote" Representative Garner
said.
Farmers Fight Taxes.
The National Grange, represent
ing more than a million farmers
Joined the attack on the bonus
taxes laF night with a letter to
Representative Fordney, chairman n
of the House committee.
IF money must be raised to pay
a soldier bonus" said the letter, "it
should be raised through enactmen,
Of the excess profits tax and with
out burdening the public with more
annoying. business-retarding tax
schemes"
The American Farm Bureau Fed
Grafton and other farm organiza-
tions are joining the Grange in a
campaign to defeat the special
taxes, the letter declared.
The bonus taxes, as they now
stand. would hit gasoline, automo-
biles. cigarettes and tobaccos, the
ater admissions, stock transactions
undivided profits of corporations
parcel post packages mailed at q
charge of more thanN Is cents, and
legal documents. In several in
stances, the bonus levies would be
an increase on existing taxes.
The American Automobile AS
sociation, through it's Washington
headquarters. declared that the
country's automobilists are already
unfairly taxed. paying s335,ooo. .oot
last year. The proposed bonus
taxes would add directly to auto
owners an anntal burden of $780,
100000. the association stated.
President George A. Diehl, Of the
A. A. A, called the House automo.
bile and gasoline tax proposal "the
most high-handed procedure the
motorists of the country ever
faced" and declared that "it will
not be tolerated 10 io,ooo,oo sub
stantiai American citizens can pre-
vent it."