The midland journal. (Rising Sun, Md.) 1885-1947, 1924-05-30
NEWS REVIEW OF
CURRENT EVENTS
Congress Passes Bonus Bill
Over Veto and Tax Bill
Compromise Is Fixed.
BY EDWARD w. PIcKARD

-.
BY EDWARD w. PIcKARD
u ONUS for the ex-soldiers-alias ad-
- justed compensation-and reduc-
ton of taxes to the extent Of about
$472 100000 during the calendar year
1925. The country gets both of these
blessings, according to the fat Of con-
gress, though just how increased ex-
penditure is to be adjusted to de-
creased revenue no expert has yet dis
covered.
On Monday the senate followed the
example of the house by overriding the
Presidents veto Of the soldiers bonus
bill and it thus became law. All the
pressure brought by the administration
and the numerous bodies and individ-
uals opposed to the bonus was unavail-
ing. The vote was SO to 26, two more
than the necessary tw0-thirds. the ma
jority including 80 Republicans, ~
Democrats and Farmer-Lahorites.
It is estimated that 3,03S,283 veter-
ans will be entitled to the insurance
policies provided by the soldier bonus
bill, while 3S9,5S3 will be paid cash Of
$50 or less, The average certificate
face value is estimated at 1862. The
certificate. is payable in full after
twenty years, or before in case OF
death. Loans may be obtained on the
policies after two years. The lowest
estimate of the cost Of the bonus is
that annual appropriations aggregat-
ing $2,2SOT5s,542 will be necessary
over the twenty-year period.
There also will be necessary $6,5OO,-
600 for administrative expenses the
first year. The Department of War
and other government agencies were
ready and preparations for the issu-
ance of insurance policies and the pay
ment of the cash sums are being
rapidly completed. The first issuance
certificates will be dated January !,
1925.
ITAvING rebuffed the President to
/ i this extent, congress was dis
posed to show greater consideration
for some of his views concerning the
tax reduction bill, probably in order
o avoid veto of that measure. The
senate and house conferees reached
complete and unanimous agreement
on a compromise and consented to
abandon the two features to which
Mr.. Coolidge had especially objected
the senate amendments on corporation
tax and full publicity Of tax returns.
1dy,ao M
earnings of corporations also was elm
mated. The Simmons normal taxes
and surtaxes and personal exemptions
were approved. Thus the maximum
surtax is 40 per cent; and the normal
income tax rates are per cent on in
come up to $4,000, per cent between
$4,000 and $1,000, and 6 per cent above
$4,000. The 25 per cent reduction in
taxes on 1923 incomes was not in dis
pute and stands unchanged. The per-
sonal exemption of all heads of fam
lilies, regardless of income, is $500.
The treasury recommendation for a
limitation of deductions for capital
losses to 1919 per cent was restored
to the bill; this is estimated to mean
additional revenue to the extent Of
SOS, OO0,0 600.
The conference report was satisfac-
tory to the regular Republicans and
Democrats of both houses, so it was
evident the objections of the dis
gruntled radicals would be of no avail.
Veto of this measure by the President
was not expected by the leaders, de-
spite the prospect Of huge deficit
due in part to the soldiers bonus.
Senator Smoot said he thought the
enactment of the tax bill would so
stimulate business as possibly to bring
in more than the amount of the deficit
in new revenues after it is in opera
ton for year or two. Representative
Green said that the paper deficit in
the fiscal year 1925 will be wiped out
by the surplus carried from the fiscal
year 1924. With respect to the fiscal
year 1925 Mr.. Green believes that
revenues will be greater than esti-
mated by the treasury and that there
win be a marked increase in the fiscal