Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-18
WORK HALTED
ON SOLDIERS
BONUS MUSS
Problem Still Talk
Among Members,
However.
CHANGED IDEAS
Say Harding FavOrs
Manufacturers
Sale Tax.

WASHINGTON, Feb. 18.-The
soldier bonus" tangle was laid aside
today until Monday by Republican
members Of the House Ways ana
Means Committee. Next week the
committee members will search for
the painless" tax to raise the need
ed funds.
Cessation of work by the commit
tee did not stop agitation of the
troublesome problem among mem
bers of the House. Republican lead.
ers were busy with a poll OF State
delegations to ascertain how Re
publican members would line up on
a general sales tax.
The former hostile attitude Of many
members toward a sales tax has under
gone a change since 1t became evident
there might be no bonus" II no sales
tax. 1t is understood from reliable
sources President Harding favors a pro-
duction manufacturers sales tax.
Ways and Means Committee members
said this would be easiest and chea pest
to collect. because it could be taken at
the source and would not require an
army Of special employees
The position OF the Republicans on
the committee with respect TO sales
taK is uncertain. Representative Frear.
Wisconsin. Is the only one openly in
revolt against the tax. Suggested alter
native plans Of raising the bonus" cash
provide for payment from the Treasury
out OF savings from reduced eIpendi-
lures for the Army and Navy and short
term Treasury certificates, IN excess prof
It's tax and increased taxes on large in
comes. aud short term treasury certih-
Gates TO be redeemed by foreign loan Ia
tcrest payments. Each Of these pans
had been rejected By the Ways aud
Means Committee
Positive developments In the situs ton
aside from revelation Of the Ohio delega-
ton sentiment for postponement we're:
L Farm bloc" Senators called q
meeting for next week TO consider a
fight against the sales tax proposal
They said seventeen already are
aligned against the tax and they are
suggesting excess profits or other
sources be tapped II bonus" is TO
be passed.
2. 1t became known President Hard
ing in advocating a sales tax wants
II so arranged that the ultimate con-
sumer-the &c man--will not be
bearing a tax trebled quadrupled or
more by the passing on process be
tween producer, tobber, retailer and
himself
In other words he wants the so-called
producers or manufacturers tax, which
would levy n small percentage at the
source OF products.
This levy naturally would be passed
on to the buyer but there would be no
reason for Increasing thu amount In each
successive step. since there would be no
levy on the turnover" A 1 per cent
levy Of this kind probably would raise
$500 100000 a year.
PROPOSED TAX
HOTLY OPPOSED.
The sales tax IS bitterly opposed In a
large section of Congress- 1t could not
pass for any purpose other than the
"bonus"-perhaps not even for that. But
the sales tax proponents say they be-
leve by putting it on a patriotic
basis"-paymeut for the soldier boys
,hey can swing aside enough foes Of the
taxes to put it across.
The thought is bitter medicine for men
who have fought the tax from the start,
but who now are committed to the
bonus They are truly between the
devil and the deep blue sea"
Congress still is cup a tree" The
Ways and Means Republicans frankly
are playing for time. They admit their
leader, Chairman Fordney, was a bit ex-
travagant in his prediction bonus" bill
would be presented to q Republican eau
Gus within ten days His statement
made under the sting of an attack from
the Democrats cannot possibly be car
rled out, one Of Fordney's associates de-
clared.