The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-02-15
Hunting Ways
To Increase Taxes
Federal Government Fix On
Eight Sources Of Revenue
to Pay Soldiers Bonus

" tlS tOO1O4S4o - oCAaNo
! Washington. Feb. 9.-Tle field
! Of possible soldiers bonus taxes
virtually was narrowed today TO
eight sources by the subcommit-
tee Of the Republican members OF
i the house ways and means com
nittee dealing with the tax prob
lem.
These sources were stated as fol-
! lows:
!. gasoline consumption tax of
! possibly one cent gallon; license
tax on automobiles 81 about 25
cents per horse power; a stamp tax
on bank checks 1t abous one cent
| for each check: 4 tax on real cs-
| tate transfers at the rate OF about
) cents on each SO involved, and
! increased taxes on admissions
where the sum paid exceeds %
cents, cigarettes, tobacco and docu-
/ mcntary stamps.
Representative Longworth Of
Ohio, acting chairman Of the SUBJ
/ committee in the absence Of Rep
rcsentative Fordney. said there was
little sentiment tor any increase
either III the first or second class
| postage rates, but added there had
F! been some discussion OF an advance
in the parcel post rates.
The bonus taxes Will be tenn
I
tending over period OF three years
and viii be designed solely TO take
care OF the cash payments TO be
made 10 former service men during
the two and one-half years begin
; ming on January /, 1928. II was
explained that the cost Of the other.
four options 10 be included in the
bonus measure would be spread
over 90 years and would not begin
20 be 4 serious charge against rhe
federal treasury for seyera4 years
at least
Members of the subcommittee
figured that on the basis Of esti-
mates furnished by treasury eN
pcrts the $3.50, 600, 900 yearly need
ed for three years for the cash
payments could be obtained from
the eight sources outliI ed. Exact
rates in each case remain to be
fixed but the subcommittee expects
70 have the entire program COM
pleted by Saturday. IL then will be
passed upon by the majority men,
berS Of the ways and means COM
mittee and under present plans will
be submitted in turn TO Republi-
can members Of the senate finance
committee and TO President Hard
ing.
Graduated increases in the vari-
Gus kinds OF documentary stamp
taxes now in force were discussed
today in the subcommittee with
sentiment said TO have been in IA
vor Of imposing the highest rate
in ne case Of the transfer Of capt.
tai stock and bonds. The figure
suggested was lilo OF l per cent.
on all transactions whether orig
inal or subsequent. The pre- tax
is l-20 OF per cent. in case
Of the original transfer and l-50
Of l per cent. on each subsequent
transfer.
The suggested increase in the
taxes in cigarettes is estimated to
yieM S25,00e,000 while that on to-
hacco would yield an additional
$1,000. 900. In the case Of admis-
sions the existing rates Of 10 per
cent. may be doubled where the
charges exceed % cents.
Representative Longworth SAID
that by spreading the taxes over
eight different sources the burden
would he fairly Well distributed
among the people and yet would
not fall particularly heavily upon
ans ore class. He thought also
that this plan would result in the
minimum OF interference with the
Improvement OF business condi-
tionS.
While Mr.. Lonsworth's commit
tee was dealing with the tax prob
lem the other subcommittee under
the direction OF Representative
Green OF Iowa began work on the
bill. IL was said that no changes
would be made in the five plans
as written in the original Fordney
measure but that several alter2-
tions in some OF the administrative
features We're planned.
One Important change was made
today, the committee striking out
the provision requiring the ARMY
and navy departments before max
! ing payments 10 former service men
to ascertain and deduct any
amounts that might be owed the
government by the men growing
ont Of their war services. Briga-
dier General Lord, budget officer
in the war department, told the
committee that the cost Of eNamln-
ing the records Of the more than
100000 men who served with the
colcr.; would exceed The amount
thar the government would obtain
under the provision.