The labor journal. [volume] (Everett, Wash.) 1909-1976, 1922-07-14

that. A "bonus" is something extra
"a gift or Notwithstanding that
hasn't been earned. He was a poor
soldier who didn't earn more than
thirty dollars a month and the kind
of board and room the boys got in
the army.
There is another name for the
thing that puts it on better basis.
1t is adjusted compensation; which
is to say that the country admits
the boys were not paid enough and
that they gave up a lot and set
themselves back in life several years
and that they ought to be given
something of what is coming TO
them so that they can make a pay
ment on a home or finish their edu-
cation or get a start in business.
1t is a fine thing to pay the boys
back in part for the service they
rendered to the country at the coun-
try's call. They did not make the
war, but they fought it. They car
ried the load. the big end of it, at
least.
You will have noticed that the Re-
publican caucus, which is running
congress, decided a few weeks ago
to get up bill to pay the "bonus." J"
The committee in the house of rep
resentatives at Washington that
fixes up the tax legislation is work
ing out the terms of the bill.
This may surprise you if you re-
member what happened when the
new revenue bill was before congress
not so very long ago. You saw IN
the papers then that some people
were demanding that congress pass
Il pay bill for the veterans of the
war, but that the president said "no"
and the secretary and the treasury
said "no." They said it wasn't the
proper time to do this. They said
other legislation-the general tax or
revenue bill. for instance-must be
gotten out of the way first. Hard
ing went before congress and made
a speech about it. 1t was consid-
cred a notable speech and great
effort. He said that he recognized
the great service the boys had done,
but that they could wait while,
Other business, he said, couldn't wait.
Do you remember what the most
pressing business was at that time?
You should remember. 1t was to
"take the brakes off business" In
other words, it was to give the poor
profiteers a chance. The admins
tration, just then. was working at
the job of getting the excess prof
it's tax repealed and the surtaX on
big incomes cut down. The poor rich
men were having to pay too much
of the country's expenses. The boys
with the million-a-year incomes must
be relieved of some of the load, so
that the country's business could
go on properly and SO that there
would be money to invest. The eX
cess profit tax, which takes for the
government a part of all a trust
makes above per cent, must be
Topped off Otherwise the profi-
teers would stop profiteering, and
where would the country be then?
Some pretty good economists,
some excellent sharks with figures
and authorities on business, went be-
fore congress and told them that
the excess profits tax didn't inter
fere with business at all and that
it didn't make prices higher because
it didn't affect the expense of those
who were making only fair profit.
But congress cut it off, anyway.
There were some who said "let us
keep this tax on the profiteers a
while longer so that We can pay
the boys their back pay or bonus"
The president and the secretary and
of the treasury didn't say that. They
said to the veterans who were ask
ing for the back pay, "wait a while"
and they said to congress, take the
tax off the profiteers and cut down
the taxes ON big incomes so that
our rich men can have few pennies
left to build new factories and rail
roads with"
And the tax was taken off the
profiteers. Also, the tax on big in
comes was reduced; but not as much
as the administration wanted it re-
duced. The farm bloc" got in the
way and made the administration
little group of western senators who
have made so much trouble for the
big fellows were in on this.
But now that the excess profits
tax is out of the way the majority
in congress has taken up the case
of the veterans. 1t may be because
they wanted to do it, and then it
may not. 1t may be, on the other
hand. because they have felt a fire
under them.
After they decided to provide for
the men who fought the war, the
question of where the money was to
come from became the big question.
The excess profits tax which has
been cut off. effective with this year,
would Just about do the business.
"Well, this is simple" you might
imagine they would say-these fell
lows in control of congress, well
lust clap that excess profits tax
right on again, now that we find we
need it after all"
But this would be a very bad
guess. No such idea occurs to the
politicians in charge. They were
put there to take the taxes off
wealth and they propose to be faith
full to their pledges.
Congressman, the president and
the secretary of the treasury are all
very busy just now trying to find
some way of raising money for the
veterans without taxing wealth or
the profiteer. Some want taxes on
gasoline and autos, tobacco, theater
tickets, etc. Reed Smoot, the SEN
ate's boss on financial matters, and
Mr.. Mellon. multi-millionaire secre-
tary of the treasury, want sales
tax" to make the whole public bear
the burden. The president waved
about some, not knowing what to
support. although he finally came
out in favor of a sales tax, The
sales tax plan is on opening wedge.
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