The Washington herald., 1922-02-09
DIRECT TAXES
DECIDED UPON
TO RAISE BONUS
Ways and Means . Com.
mittee Seeks Schedule
Yielding 100000.

Funds for the soldier bonus will
be raised by direct taxation, impos-
ing a burden of at least $500, ,0o0. 900
a year for three years.
The House Ways and Means Com
mittee has reached this conclusion.
and is now seeking the taxes that
can best be utilized. Here are
some that are favored:
Increase in letter postage from
to 3 cents, raising s7o.000.000.
A tax of cent a gallon on gaso-
line. bringing in ss0.0o0.00o an
nually.
A tax Of IS cents per horsepower
on autos. to yield $4,000 600.
An added tax of 81 per thousand
on cigarettes. and increased taxes
on smoking tobacco other than
cigars.
A tax on bank checks.
A tax of one-tenth of 1 per cent
on stocks and bonds sold in eN-
changes. to bring in $4,000, 900,
A tax on the transfer of real es-
tate of one-half of l per cent or
less: y per cent tax yielding
$50 100000.
resentative Frear. of Wisconsin. is
nearing its decision on what taxes
will be employed. and expects to be
able to report out bonus bill
within a short time.
Three Features Favored.
Chairman Fordney. after a TRIP
to the Treasury. favored imposition
of real estate transfers. stock and
bond transfers. and the higher let
ter postage. the three to yield
1910. 900 900.
But the committee inclined to the
belief that these taxes imposed toe
ffeavy a burden on a narrow clas:
OF business. and favored a wider
diffusion. The taxes listed above
received favorable consideration
and II seems likely that most oi
them will be employed.
Committee members said they
justified the tax on gasoline and
auto horsepower by the fact thai
the Federal government is, spending
s1O0. .OOO. zoo this year on good road:
for auto users. They admitted
however. that this tax would b'
highly unpopular. 1t is Inquired
there are between 100000 anC
IL ,OOO, 600 autos in the country
consuming s.O0O.O00.0Oo gallons Of
gasoline a year.
The committee has divided itseli
into two sections. One headed by
Representative Green, of Iowa. viii
consider methods of compensation
TheI other, headed by Chairman
Fordney, will decide on taxes. III
the absence Of Fordney during thu
next few days Representative Long
worth. of Ohio, will preside ovei
the latter committee.
Says Sales Tax Is Dead.
I,cngworth said the proposal fol
a sales tax is dead. There is wide
spread opposition to it in Congress
he said, to which is added the be-
lief that the defeat of the Canadian
government may have been caused
by the sales tax there.
Nuisance taxes" like those i'm
posed on ice cream, proprietary med
icines. and similar articles. which
the new revenue law repealed, VIII
not be revived, according to Long
worth.
Committee menses said no pos
sibility existed. of utilizing interes
payments on the debts of foreign
governments. because it is no
known when these payments vii
begin. or how much they will be
Increased income and inheritance
taxes likewise have been discarded
Latest calculations OF the com
mittee are that the bonus will cos'
in its entirety S1,500.00o,00o. Should
all Veterans elect the cash plan. tho
payments the first year would b'
$500, 100000. But it is figured tha
only half will want cash.
The committee is considering
proposal TO begin cash payments OF
January /, 1928. the funds needed
in excess Of tax revenues to be pro
vided by the issuance of Treasur.
certificates based on prospective