Evening journal., 1922-02-11
HOUSE BONUS
PLAN OPPOSED
Smoot Asserts Tax Will
Kill Business; Long
Fight Ahead
POSTAGE INCREASE
is ABANDONED

WASHINGTON. Feb. 11.-Repub-
lican members OF the section OF the
House Ways and Means Committee
20 whom are assigned the task OF de-
vizng taxes to raise $3.50. 900. 600 an
nually for the next three years to
pay soldier bonus, presented their
tentative schedule yesterday after
noon to the Republican members Of
the Senate Finance Committee, and
the Senators registered violent oppo-
sition against some Of the items.
Responsible spokesmen OF both
committees, howvevre, predicted the
House program would be agreed
upon and presented to the House
early next week. Strong opposition
to the schedule is not expected in
the lower chamber. but long battle
is threatened in the Senate.
Members OF the House committee,
after the conference with the Sena-
tors. admitted the meeting had been
stormy, and that one or two OF their
proposals would likely be modified.
The most serious opposition centered
around the proposed tax on stock
and bond transfers. There was also
much objection to the tax on real
estate transfers.
At a full meeting OF the House
Ways and Means Committee the
schedule OF proposed taxes an
nounced last night was slightly re-
vised so that the program submitted
to the Senate Finance Committee
was as follows:
A tax OF so cents per 1000 on
cigarettes to yield s25 000 600.
a "a xof cent per gallon on
gasoline to raise s70.000,000.
Doubling the present theatre
admission tax to yield S75.-
600, 900.
A tax Of 50 per $1,000 valu-
alton on real estate transfers to
to yield s20.oO0.O00.
tax on chewing and smok-
ing tobacco OF cents a pound
to yield s5,0o0.00o.
A tax OF 2lk per cent. on un-
divided profits OF corporations
20 yield $4,000 900.
A tax OF 25 cents a horse
power on automobiles to yield
$4,000. 600.
A tax on stock and bond
transfers to raise SEQ 600. 900.
Increase OF the parcel post
rates TO their former level OF an
addition OF l cent for every 25
cents. to yield $40, 100000.
The proposed first-class postage
Increase has been dropped.
Senator Reed Smoot (Utah). chief
advocate in Congress OF the sales tax
pronounced the House program un-
acceptable. and said: 1T will sim
ply KIN business"
Members OF both houses were
deluged with letters and kilograms
protesting against the tax on stock
and bond transfers and they had a
percepuble effect. Chairman Ford
ney Of the Ways and Means Com
mittee conceded that this tax will
have 10 be decreased.
Separate taxes are now proposed
on both stocks and bonds, and al
though they are coupled in tho COM
mittee schedule they are really dis
tinct in application
Il Is proposed TO double the pres
ent tax on documentary stamps used
on bonds. The increase will pro-
duce ssO0oo.0o0.
II is also proposed TO Increase
the present tax OF 1850 OF 1 per cent
on stock transfers to 1-10 OF 1 per
cent This Increase also would pro-
duce 100000 900 SO that on the
transfer OF 100 shares Of stock. on
which the brokerage fee would be
about SIS, the Federal tax would be
$40 instead OF 50. an increase OF IS.
The House plan is impracticahle.
inequuable and unfair" said Senator
Smoot. 1T would tax the number
OF shares OF stock the same amount
regardless OF their value and might
y '-rren exceed the value OF the shares
il is simply an additional discour-
agement Of business. II this thing
goes into effect it will just be put
ting business or ms feet and business
never VIII get on its feet We will
simply give notice to many men and
many Industries that they might as
we'll quit as we are going to tax
them 10 death"
u was said m the taxes would
go into effect In April so that suf-
hcicnt revenue viii be In the Treas
vry 10 make the first cash payments
TO the ex-service men on October
one month before the Congressional
and Senatorial elections. A definite
date has not been reached
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