Great Falls tribune., 1922-02-19
BONUS AND SALES TAX

z =
BONUS AND SALES TAX
THE soldiers bonus bill is up in
the air once more and il is I'm
possible to say when or where it
will come down. The house finance
committee wanted to raise the
needed cash by the imposition OF
a lot Of new special taxes levied
on automobile owners, tobacco
users, buyers or sellers Of real
estate, surplus capital, etc. Their
idea was that they might be able to
make Mr.. Average Voter believe
that some other fellow paid the tax
and he should worry. The senate
finance committee had different
idea. Their idea was simply to
borrow the money needed on short
time bonds or loan certificates. As
these would not have to be paid
for a few years, except perhaps as
to interest, the people would forget
about them until after election,
anyway. Why should any voter
worry about future debte He
might be dead before It had to be
paid. Postponing payment to the
senatorial financial mind was al
most as good as not paying at all,
and it was infinitely better than
getting the voters mad at this time
by increasing taxation when they
were loudly demanding reduction.
The house and senate committee
are working jointly on this matter
of finding bonus money. Not being
able to agree on it, they formally
passed it up to the president. we
understand, that there was a dis
position to pass the matter up to
Carl Riddick to settle the contro-
versy, but finally some of the old
timers pointed out the fact that the
president had power to veto the
bill after it passed and Congress
man Carl Riddick of Montana had,
as vet, no such power under the
constitution, so their dilemma was
passed up to the president tor solu-
ton.
No doubt, President Harding
consulted Congressman Riddick be-
fore he cracked this hard nut, but
whether he did or did not, he sent
a letter to Chairman Fordney OF
the house finance committee that
nroved a bombshell and all Its
works were blown up by it. More
over. the senate contention fareo
no better. The president told them
that both the house proposition ano
the senate proposal were exceed
;nelv bum and found no favor II
his eyes. And the president is the
how with the brass knuckles when
Il comes to knocking a bill cold
with his hard veto hand. President
Harding told congress flatly that
there was only one way OF raising
the cash called for in their bonus
bill that he could think OF with any
degree of tolerance, and that was
a general sales tax.
Now. this general sales tax hits
.vervone. more or less, according
70 the sum Of money they spend
Moreover, it is a direct tax which
.v.rv one can estimate for them
selves. Suppose it was one PEI
cent. Then, every man or woman
who bought thousand dollars
worth of goods in a year woule
have to contribute ten dollar Dill
to the soldiers cash bonus. II they
spent ten thousand, they woule
contribute one hundred dollars, ane
if they spend 100000 they would
contribute $1,000 to the cash bonus
AS final side winder,, the presi
dent told congress that unless they
were willing to raise the cash II
this brutal, above board way, they
had better postpone the soldiers
bonus till some other time waer
Uncle Sam had more cash on hane
md less bills to pay.
From the politicians point Of
view, it is a terrible prospect IL
postpone the bonus, is to lay them
selves open to the violent wrath
of two million ex-soldiers who hav'
their mouth made up to swallow
this juicy morsel, and will brool
no delay. And election is coming
on next November. To raise, th'
cash by a general sales tax, will
no exemptions for farmers, or othe
favored classes. is equally fatal Il