The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-10
LICENSE TAX ON
AUTOMOBILES is
ONE OF THE ITEMS
Gasoline Consumption Tax of
: One Cent a Gallon Is Also
Being Considered.
BANK CHECKS AND REAL
ESTATE TRANSFERS ALSO
While Letter Postage Not Like
ly BE Increased, Parcel Post
Rates May Soar.

WASHINGTON. Feb. s.-The field
of possible soldiers bonus taxes vir-
tualiy was narrowed today to eight
sources by the subcommittee OF the
republican members OF the house ways
and means committee dealing with
the tax problem.
These sources were stated as fol-
lows: A gasoline consumption tax OF
possibly one cent gallon: a license
tax on automobiles of about 25 cents
per horsepower; stamp tax on bank
checks at about one cent for each
check; tax on real estate transfers
at the rate of about five cents on each
$40 involved, and increased taxes on
admissions where the sum paid ex-
ceeds 25 cents, cigarettes, tobacco and
documentary stamps.
Representative Longworth OF Ohio.
acting chairman OF the subcommittee
in the absence of Representative
Fordney said there was little senti-
ment for any increase either in the
first class or second class postage
rates, but added there had Ibeen some
discussion of an advance in the parcel
post. rates
The bonus taxes will be temporary,
Mr.. I4ongworth said, extending over a
period of three years, and will be de-
signed solely to take care of the cash
payments to be made to former serv-
ice men during the two and one half
years beginning on January !, 1923.
IT was explained that the cost of the
other four options to be included in
the bonus measure would be spread
over 20 years and would not begin to
Be a serious charge against the fed
eral treasury for several years, at
least.
Members of the 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 subcommit-
tee expects to have the entire pro-
gram completed by Saturday. 1t then
. will be passed upon by the majority
of the ways and means committee,
ana under present plans, will be sub
mitted in turn TO republican members
OF the senate finance committee and
to President Harding.
Graduated increase in the various
kinds of documentary stamp taxes
now in force was discussed today in
the subcommittee with sentiment said
to have been in favor of imposing the
highest rate in the case of the transfer
OF capital stock and bonds. The fig
ures suggested was 1.10 OF one per
cent in the case of the original trans
- Nl,
subsequent transfer.
The suggested increase In taxes on
cigarettes 1t is estimated will yield
sos, 100000 while that on tobacco
would yield another s5.ooo.oO0. In the
case of admission the existing rates of
tax per cent may be doubled where
the charges exceed 25 cents.
Representative Longworth said that
by spreading the taxes over eight diff
ferent sources the burden would be
fairly well distributed among the
people and yet would not fall par
ticularly heavy upon any one class
lie thought also that this plan would
result in the minimum Of interference
with the Improvement of business con-
ditions.
While Mr.. Longworth's committee
was dealing with the tax problem the
other subcommittee under the direc-
ton OF Representative Green OF Iowa,
began work on the bill. It was said
that no changes would be made in the
five optional plans as written in the
original Fordney measure, but that
several alterations in some OF the adj
ministrative features We're planned.
One Important change was made
today, the committee striking out the
provision requiring the army and navy
departments before making payments
10 former service men to ascertain
ana deduct any amounts that might
be owed the government By the men
growing out OF their war service.
Brigadier General Lord, budget Off
Ger In the war department told the
committee that the cost of examining
tho records OF the more than 1900, 600
men who served with the colors would
exceed the amount that the govern
msnt would obtain under the provis-
ion.