The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-02-11
HOW BONUS IS TO
BE RAISED BY j. s.

The ways and means committee
of the house of Representatives is
hard at work whipping into shape
the soldier bonus bill, says a late
Washington dispatch. Hearings are
rapidly drawing to conclusion and
Chairman Fordney believes the
measure will be ready for report
to the house within few days.
Its subsequent passage will be very
prompt. The framing of the ac-
tual bonus provisions is compara-
lively easy but the revenue sections
of the bill are commanding the
closest study by the committee.
Chairman Fordney has held consul
tations with President Harding and
the announcement has been made
that the bonus bill include the ma
chinery for raising funds to meet
its obligations.
Secretary of the Treasury Mellon
has appeared before the committee
at the request of the chairman and
outlined possible schemes of taxa
ton that would partly meet the
bonus demand. His suggestions are
as follows:
1. An increase of first class
postage to three cents, bringing in
additional revenue of $7O,000,000.
2. An increase of second class
postage rates to produce about $780,
100000.
8. A license tax of so cents per
horsepower on automobiles, in adj
dition to all other taxes paid by
motor cars, to produce approximate
ly $1O0,O0O,0OO.
4. An increase in documentary
stamp taxes to bring in about $40,-
100000.
5. An increase of so cents per
1000 on cigarettes, and two cents
pound on tobacco, estimated to
raise $25,00O,OOO.
6. A 2-cent stamp tax on all
bank Checks to yield about $780,
100000.
The total of those suggested levies
is $295, 100000, but it is estimated
by the treasury department that the
bonus would cost $425, 100000 a
year for the first two years. The
difference of $3.50, 100000 Secretary
Mellon leaves for Congress to pro-
vide, but he intimated that higher
tax rates might be assessed against
tea, coffee, sugar and similar arti-
cles, together with substantial
levy upon gasoline. The secretary
was careful to make plain, however,
that he did not approve any of those
taxes.
Referring to the possible use of
any part Of the expected proceeds
from the foreign debt to meet the
bonus payments, Mr.. Mellon de-
clared the receipts from that source
were so problematical that they
could not be depended upon, and, in
any event, the ultimate cost would
be greater than if direct taxes were
levied. If the foreign debt interest
were used for bonus purposes, our
own debt refunding operations would
have to be extended that much
longer at greatly added cost to the
taxpayers.
1t will be seen that the problem
of raising $425, 100000 a year ad-
ditional revenue is most difficult
one for Congress to solve, but the
members are convinced that the
country is demanding a soldier
bonus bill, and a measure will be
worked out that is the least harmful
to the taxpayer and that will dis
turb business as little as possible
The bill will be rushed to the Sen
ate without any needless delay in
the House, in the hope that it may
soon become law, and that cash
payments to the ex-soldiers may be-
gin at an early date. The task OF
starting additional tax collecting
agencies to work to raise a sum OF
such magnitude is one of which the
treasury should have prompt notifica
ton, as we'll as the business inter
ests and individuals who will have
to provide the money.