Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1922-02-13
SALE TAX NEEDED.
TO RAISE CASH FOR.
SOLDIERS BONUS.
HOUSE COMMITTEE pEADLocKEO
ON SCHEME TO OBTAIN FUNDS
THROUGH SPECIAL TAX-HARp.
; ING TO KEEP GLANDS OFF,"

Washington, Feb. 13,-The house
ways and means committees scheme
OF special taxes to pay the soldiers
bonus is TO be scrapped as result
Of overwhelming opposition through.
out the county, Republican leaders N
congress said yesterday.
When the special subcommittee OF
-four, representing the senate finance
committee and the ways and means
committee, meets today to attempt 10
break the deadlock which the ways
and means committee program has
brought about, the sales tax again will
De proposed as a compromise on which
the two houses could agree.
Unpopularity OF the new taxes on
gasoline, automobiles. parcels post
apd increased taxes on tobacco. stock
and real estate transfers and theater
tickets was discussed at length at
the white house Saturday night
Senator Snssat OF Utah, who went
to the white house with Senator Nc.
Cumber OF North Daota and Chairman
FOmney Of the house ways and means
committee after the senate and house
reached q deadlock Saturday on tho
tax scheme, said the President had
adopted q hands on policy.
The President reiterated his d.
mand that the bonus bill carry its o#u
financing provisions and told the con-
Cumher, North Dakota, and Chairman
to- work out the method The three
members Of congress left the white
house convinced that the ways and
means program had TO be changed.
The President was told Of the storm
Of opposition over the committees sps.
cial tax PLAN and il is understood he
suggested revision.
Members of the special subCommIt-
tee which has charge Of working OF
the bonus financing plan said an Ell
tirely new method Of raising revenue
probably would be adopted.
ACCESSIBILITY of the sales tax In
gFessiCnal leaders It was up to them
meeting by Senator Smoot as the first
of the alternative plans that have been
suggested. Senator Smoot led a fight
during the revenue revision contest /
last summer to have the sales tax sub .
stituted for the tax revision program. !
that finally was approved by congress. /
A sales tax Of one-half Of I per cent
on either the manufacturer or retailer
Would raise more than the S3j0.000,009
required during lie next three yeas
for the cash bonus payments, Senator
Smoot said,
Opposition TO the ways and means
committees proposal for new special
taxes has flooded congress from all
quarters Business and banking in.
terests are warning senators and REP.
resentatiyes by every mail against en-
acting the proposed tax of 21a PEI |
cent on undivided profits of corpora |
tons and against increasing the tax |
on capital stock transfers from one |
liftieth to Onetenth Of ! per cent and !
increasing the tax on real estate trans. |
fers to 81 per 81 600.
The agricultural blocs in both |
houses also have served notice on tue |
ways and means committee ana fl !
nance committee that they will defea. |
the proposed taxes on gasoline. auto
mobiles and tobacco, if these are re-
ported, Farmers organizations
throughout the country have sent pro. |
tests TO congress against these taxes
This deadlock will not stop the |
bonus, however, Senator Smoot said |
1T is going through, and some accept
able method Of raising the money viii |
be found"