The New York herald., 1922-02-09
B0RAH WILL FIGHT
BONUS AS BURDEN
Continued from First Page.

lation will necessitate an Increase in
taxation that will be a betrayal of that
pledge. Although it may appear that
votes will be gained for the party
through the giving of money to the ex-
service men, he believes that when the
public generally begins to feel the bur-
den Of increased taxation to pay this
money, there will be a revulsion cf feel
ing against the party.
On the basis OF the plan advanced
yesterday by Chairman Fordney (Mich.)
the Ways and Means Committee to-day
began consideration Of sources OF reve-
nue. for payment Of a soldier bonus and
reached the conclusion that the money
could be derived from some of these
methods:
Taxes on transfers Of stocks and
bonds sold in exchanges, on transfers
OF real estate. gasoline, automobiles ac-
cordlng to horsepower cigarettes, smok-
ing tobacco, but not cigars bank checks
and increased letter postage.
The letter postage increase seemed to-
day to be the least popular source with
the committee.
Mr.. Tordney had proposed three defi-
mite sources-one-fifth OF ! per cent. on
bonds and stocks transfers; one-half Of
I per cent on real estate transfers, and
l cent letter postage increase-but other
proposals were presented and the dis
cussion was enlarged to include all the
possible tax revenues enumerated.
Although the meeting was secret 1t
was learned that opposition developed
to Fordney's threefold plan and the pre-
vailing opinion was that the new taxes
should be distributed as widely as pos
sible so that isolated groups of the
public would not foot the whole bonus
bill.
When the committee meets tomorrow
1t expects to have estimates on what
those proposals would produce. 1t only
remains to determine which of the items
under consideration should be elimi-
mated and the extent OF those to be
levied
1t is now estimated tentatively that
$3.50 900 yearly will be required to
make up the cash payment part of the
proposed bonus This is based on the
calculation Of the fiscal officers Of the
army navy and Marine Corps, who esti-
mated that so per cent. of army vet
Grams and rs per cent. Of the navy would
select the cash basis.
The committee was divided to-day
into two groups. The first, headed by
Chairman Fordney. has the task OF
getting the tax problem into shape The
second. headed by Representative Green
ton plan of bonus payment
Representative Fordney left the city
this afternoon and Representative
Longworth (Ohio) will take his place.
Longworth said his divisions part Of
the Job would be finished in two days,
but Representative Frear NNis). leader
Of the Agricultural bloc" said week
would be required. Both of these. who
represent the two poles of the Republi-
A.N
that HARMONY would prevail"
The committee discussed making the
first cash payment on the bonus on
January 1, 1923. or perhaps n week
earlier to give a semblance of Christ
mas gifts. When the taxes will be ap-
piled is undetermined, but the prospects
are that July will be the date, IL being
the first day of the fiscal year.
Representative Frear will attempt to
force theater and entertainment admis-
sion taxes into the bill. Such tax was
eliminated in the present revenue IN
and was repealed January l.
A suggestion that the gasoline tax be
four cents gallon met with disap-
proval and the counter proposal of one
cent tax was viewed favorably. Six
months ago Government figures were
issued showing that 10,200.000 automo-
biles are In use in the United States.
Since then 1t is estimated there has been
o 10 per cent. increase. Upon this
premise It was supposed by members OF
the committee that 5000, 100000 gallons
OF gasoline were consumed annually.
The revenue, therefore, would be $780,
600.0 900. but the conservative view Is
that $40. 900, 900 Is a better guess.
The committee looks with favor on a
25 cent tax per horse power on autcmo-
mobiles to produce S7b.000,0 900. This
and the gasoline tax would be justified,
it was asserted. because the Federal
Government appropriates 100000, 900
annually on an average to aid the States
in construction and maintenance of
roads. This years appropriation for
roads. however, was only $75.000,000.
Frear presented an estimate OF $70,000,-
coo to be produced by the theater ad-
mission tax.