News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1922-03-08
REJECT SALES
TAX FOR BONUS
Fordney and Associates, I'M
pressed by Bloc, Now Favor b.
nus Bill Minus Revenue Plan.
PARTY LEADERS disturbed
Sudden Decision Likely to Proaona tho
Struggle, With the Outcome Much
in ooubte-4lope Voiced That Brit
ain WiIlt Float Cebt Bonds Here

Observation-Disclosures voting, 5 to 2,
against. recommending a sales tax as O
mehn&'of paying the soldier bonus, the
sGbcomnalttee of the Republicans of
the Why's and Means Committee, to
wIlipi the finance feature Of this prob
lem| had been referred, decided in
faEeE of reporting o. bonus bill with
cut any specific revenue provisions
tRaaeIled.
Later the subcommittee presented
As decision to the, full majority men,
4ership of the Ways and Means Com
mfttee. Republican leaders urged a
reconsideration of the subcommittee
action, but after talking over the mat
Ger in an indefinite way and listening
TO explanations by Chairman Fordney,
who was q leading factor In the action
taken, the conservative members sue
ceeded ID obtaining an adjournment
without any final decision.
1t Is. said that the subeommittee's
reasons We're not entirely satisfactory
to sGne other members of the COM
mitFee. The advocates of the sales
tax expect word will come from the
White House informing the "nonreve-
aue raisers" thar the President will
not approve such a measure. If the
President reiterates opposition to pas
sage Of bonus bill now unless it pro-
vides revenue through a sales tax,
then, according to some expectations,
the opponents Of the sales tax are
likely to reverse themselves.
After President Harding was in
formed Of the failure of the Repubi-
cans Of the subcommittee TO take his
suggestions on the bonus matter after
they had sought them, 1t became
known that his position regarding
bonus legislation remained unchanged,
being unalterably defined In the letter
which the President sent to Mr..
Fordney on February 18. 1t was said
that he would veto any bonus bill that
came to him without providing means
for raising the revenue, and that tha
only bonus measure acceptable to him
was one that obtained money through
a sales tax.
The situation as interpreted by Re-
publican leaders was that there would
be no bonus legislation until very
late tn this session, if at all, If
bonus bill comes to the Senate minus
{. revenue provision i cannot, under
the Constitution, supply the lack. Re-
publican leaders said that bonus that
that did not find the revenue to pay
the soldiers you'd be rejected in the
upper branch. =.
Party leaders in both House and
Senate were surprised by the sudden
decision Of Chairman Fordhey and his
associates which was regarded as a
reversal of policy. 1t was condemned
generally as a move that might defeat
all bonus legislation at this time and
as another sign of the lack of party
harmony.
The five who voted against the sales
tax were Chairman Fordney and Rep
resentatives Copley of Illinois, Tread
way of Massachusetts, Timberlake OF
Colorado and Watson of Pennsylvania.
Representatives LOngworth of Ohio,
and Bacharach of New Jersey sup
ported the Presidents plan for a sales
tax for bonus levies
Mr. Fordney and his friends were
induced to retreat, 1t was said by one
Of their number, because they had be-
come convinced that the farm-labor
bloc had sufficient votes in combina-
ton with the Democrats to prevent
the passage of a bonus bill on the
lines of the Presidents recommends
tons.
The farm leaders Informed Mr..
Fordney that they would not continue
heir opposition to bonus legislation IL
he sales tax was eliminated and the
measure was presented to the House
without taxation features.
Senator Moses Of New Hampshire
anne out against the bonus In a
peech in the Senate. He is the four
zenith member of the upper chamber
o take this position.