Evening star., 1924-03-27
NUMBERENnTLED
TOBONUS FIGURED
Senate Finance Committee
Seeks to Settle Conflict
of Cost Estimates.

Army and Navy records were studied
today by the Senate finance commit
tee in an effort to determine the exact
| number of veterans entitled to a
bonus and their average length of
service as means of ending, to some
extent, the confusion growing out of
the huge differences in estimates as
to the cost of the bonus bill passed
by the House.
The committee will work out for
itself an estimate as to the probable
cost of the bonus, Chairman Smoot
said, after getting all the necessary
data.
The main point of divergence re-
sulting in the $4,000, 100000 difference in
the estimates of the Veterans Bureau
and Treasury actuaries lies in whether
the government will have to pay in
terest on the funds to be used in pur-
chasing the proposed insurance poll
cies. This also will be determined by
the committee.
Chairman Smoot is planning to re-
sumo the night sessions of the COM
mittee this week, and has predicted
early action on both the bonus and
revenue measures. No decision has
been made, however. as to which Will
be reported first
Leaders Sound Out Forces.
Leaders of both parties have been
quietly sounding out their forces on
the income tax rates issue in the
revenue bill. Republicans intimate
that they have some democratic votes
for the Mellon rates, while democrats
are counting on the support OF sew
eral of the republican insurgent
group.
Senator La Toilette of Wisconsin,
leader of this faction, has not an
nounced his plans, but Senator'S Nor
ris of Nebraska and Brookhart of
Iowa, of the group, have declared
openly for retention of the present
SurtaX rates, with maximum or 90
per cent; a greater reduction in the
normal rates than provided in the
Mellon plan, and for liberal exemp-
: ton. The Mellon scheme provides for
no change in the exemptions allowed
in the present law.
Both senators also have declared
for re-enactment of the excess profits
, tax. This virtually is the plan ad-
vanced by the republican insurgent
| group in the House. The House group
supported the democratic plan When
their own was defeated, but later
: switched to the Longworth compro-
/ mise, with a maximum surtax or 81 II
per cent, when the normal rates were
cut.
Democrats Seek Harmony.
If the Senate insurgents should
swing to the democrats. the outcome
would hinge on the number or demo-
Gratis who would support the Mellon
rates. In view of this, democratic
| leaders are drawing their substitute
rate schedule with a view to harmon
izing the various elements, admitting
that several of the party are in favor
of the lower surtaX rates. Senators
Bruce, Maryland, and Bayard, Della
ware. democrats, are counted among
the doubtful class.
Some democrats also are consider
| ing a modified form Of the excess
profits tax in the shape of gradual
ed scale of rates for the corporation
taxes, in place of the fiat 12h per
cent tax in the present law. Senator
Jones of New Mexico. a democratic
member of the finance committee,
| has been working out such tax, but
| leaders generally have frowned upon
such a scheme.
| Senator Jones is considering either
a graduated tax on earnings of cor
/ porations based on invested capital,
with a normal tax of per cent, or
| a normal tax on the total income of
corporation taxpayers, with a grad
uated tax on undistributed corpora
ton incomes.