Evening star., 1922-02-10
DROP BANK-CHECK
fTAX AS BONUS AID
committee Agrees on Other
Ways Of Raising Huge Sum
for Soldier Help.

A slight increase In parcel post
rates. to yield q total of S2O.oOO'-
600 a year. also was understood to
have been agreed upon.
Reaching a final agreement on the
soldiers bonus tax program, House
ways and means subcommittee decided
today against a tax on bank checks.
The program was not made public. but
1t was stated authoritatively that with
the exception of the bank check tax 1t
was Substantially the same" as that
given out last evening.
Other Proposed Taxes.
This program included one cen. a
gallon on gasoline. estimated to yield
$70.O0O.OO0.
Twenty-Five cents per horsepower
on automobiles. S50.000.000.
Five dollars per $1,000 on real estate
transfers, s20.o00,O00.
Increased documentary stamps.
with the rate on the transfer OF
stocks and bonds at one-tenth OF i per
cent, SEA, ,G00.0 .0G0.
Double the present 10 per cent tax
on admissions where the charge eX-
ceeds 25 cents. $T0.000,000.
An increase OF so cents thousand
on cigarettes. S25.o0o.000.
An increase of cents on chewing
and smoking tobacco, s5,000.00O.
Postal Increases Opposed.
Members Of the committee declined
to say what tax. IL any, had been sub
stituted for the check levy. but il
was stated that the committee had
decided against any increase in either
the first or second class postal rates
Increased parcel postal rates Were
under consideration but whether they
were approved was not made known.
Chairman Fordney said the program
agreed upon would be submitted to
republican leaders on the Senate
finance committee. with a view 10 an
agreement between the two commit
tees. After such an agreement is
reached the program would await ap-
proval by the entire republican mem
bership of the House and Senate
committees. 1t was said that until
there had been a final agreement be-
tween the two committees the exact
details of the program would not
be made public. by agreement among
the members of the subcommittee.
Statement by Mr.. LOnEwOrth-
Representative Longworth of Ohio
acting chairman of the subcommittee
in the absence of Representative Ford
ney, said yesterday there was little SEN
first-class or Second-claSs postage
rates, but added that there had been
some discussion of an advanced parcel
post rate.
The bonus taxes will be temporary,
Mr.. Iongworth said, extending over
a period of three years and will be
designed solely to take care of the
cash payments to be made to former
service men during the two and one
half years beginning on January l,
1923
Members oftthe subcommittee fig
ured that on the basis of estimates
furnished by Treasury experts the
$3.50. 100000 yearly needed for three
years for the cash payments could be
obtained from the eight sources out
lined. Exact rates in each case re-
main to be fixed. but the subcommlt-
tee expects to have the entire pro-
gram completed by Saturday. 1t then
Ee$fi@be passed upon by the majority
members of the ways and means COM
mfttee and under present plans Will
be submitted in turn to republican
members of the Senate finance COM
fnittee and to President Harding.
3 Documentary stamp Taxes.
AGfraduated increases in the various
Kinds of documentary stamp taxes
now in force were discussed in the
subcommittee, with sentiment said to
lave been in favor of imposing the
Ter .of capital stock and bonds. The
tg0re suggested was one-tenth of l
Der cent on all transfers. whether
original or subsequent. The present
tax is one-twentieth of l per cent in
The case of the original transfer and
%ne-fftieth of l per cent on each sub
&equent transfer.
ttRepreentative Longworth said that by
spreading the taxes over these different
sources the burden would be fairly well
1axkr, ,h,,%~
would not fall particularly heavy upon
any one class. He Thought also that
This plan would result in the minimum
OF Interference with the improvement
OF business conditions
kfWhile Mr.. Longworth's committee
was dealing with the tax problem. the
other subcommittee. under the direction
of Representative Green of Iowa began
working on the bill. 1t was said that
no changes would be made in the five
optional plans written in the original
Fprdney measure, but that several al
terations in some of the administrative
features were planned.
Clause Stricken Out.
zone important change was made
yesterday, the committee striking
ont the provision requiring the Army
and Navy Departments before max
ing payments to former service men
TO ascertain and deduct any amounts
that might be owed the government
by the men growing out of their war
service. Brig. Gen. Lord, budget of
ffer in the War Department told
the committee that the cost of ex-
amining the records of the more than
100000 men who served with. the
colors would exceed the amount that
the government would obtain under
this provision.
In the House, Representative PERL
man, republican, New York, intro
duced a bill proposing a general in
crease in the inheritance tax rates
designed to yield an additional $780,
100000 a year revenue. Mr.. Perlman
said this would go long way toward
paying the bonus.
The rates proposed by Mr.. PERL
man are graduated from per cent
on net estates not in excess of
$50. 900 and SO per cent on net estates
exceeding $10.000,000. This ID double
the existing rates.