Evening star., 1924-01-07
,-' - = :. n. - 80. : : : :
WOULD PAY BONUS
BY ENDING WASTE
navey Defends Stand for Adjusted
Compensation for
L.. Veterans.
- SCI ~.
ATTACKS, MELLON PLAN
s.- .#
ATTACKS. MELLON P
Says 1t Favors Rich and Offers
/. = Sop to Poor.

claiming that the soldiers bonus
can easily BE paid with money that is
now being wasted in the federal de-
paEtments. ''especiaIly>-in the Vet
erans' Bureau.' and that this bonus
would in no way preclude the major
portion of the tax reduction pro-
gram" Representative Martin l..
DaVey OF Ohio today made public a
reply he is sending to constituents
VINO are writing to him. in opposi-
tion to the soldiers bonus.
III you take the Mellon plan as it
STANDS. IL simply means giving the
crumbs or tax reduction to millions
OF. people with small incomes and
glving very large amounts to those
with the great incomes. For instance.
Secretary Mellon proposes to reduce
she taxes OF man with a million
esn noilar income, more than quarter
SIrS million dollars per year. Are you
IN favor of that?
:! am certainly in favor OF re-
uocing the tax burden in every pos
Sioie way that is devoid OF favoritism.
thoroughly appreciate the tmpor-
tance Of general tax reduction in the
feoerai. state and local governments s
Just as far as it is possible. 1 will
support any program Of federal tax
Teduction that is fair and proper. but
u
Mon IN the taxes on big incomes as
asainst so small a reduction in the
taxes on smaller incomes.
Taxes on Business.
FurtherInore. il seems to me most
important to eliminate all the dis
criEnlnatory taxes. such as that as
ressed against automobIle Industry
! am very strongly IN favor of abol-
.snlng these discriminatory taxes al
tosether, including the taxes on auto
I1ooiies, tires and accessories. jew
.ry' shsa1,,.s,In amusement tickets. etc. There
Tax should be levied against one
business In time OF peGce and not
against all other lines of business
equally.
euce the federal taxes on going bust
l!ssS. THESE taxes OH business must
ol necessity be passed On to the con-
suming public. They are either
2assed :rosS on TO the public or the concern
likely to be true Of personal income
taxes Unfortunately. this tax on
business Is multiplied over and over
sgain as 1t IS passed on from the
;obber. to the retailer and to the con-
sumer.
The next important thing is TO
reduce as far as possible the tax on
2ersonal INCOMES. But here is where
company. I cannot see the Justice OF
giving so much to those OF the largest
Incomes and so little to those Of
smaller incomes.
Stand on Bonus.
Now, with reference to the SOL
d,ers' bonus" I think 1t ought to be
clear to all the people OF the four
teouth district that am IN favor of
1he soldiers bonus. I have been for
tt publicly for the last four years and
have expressed myself definitely in
conceive 1t to be my duty to keep
this public promise.
THE total amount required for the
soldiers bonus will probably not
figure this out Tor yourself There
were 100000 men in the armed
rorces OF this country during the war
The average length Of service was
men are paid at the rate OF $50 per
month. the average would be $3.50.
This would certainly be less than
s2,0oo,ooo.ooo. whereas the opponents
OF the bonus are trying to tell US that
Il would cost $4,000, ,0o0,0 900.
'These opponents also greatly ex-
zggerate the probable annual cost.
This bonus could. very properly be
paid by a bond issue. running over
period OF twenty or thirty years. at an
cred million dollars. The best esti-
mates have seen put It at less
than ono hundred million a year.
This was the estimate OF the Treas
-iry Department itself before Secre-
rary Mellon started his active cam
paten against the bonus and in favor
OF heavily reducing the tax on his
own enormous income.
Waste In Bureau.
Furthermore, there ts enough
taste OF money on the part OF the
federal government to nlore'than pay
me annual cost Of the soldiers bonus,
Z any reasonable portion OF it could be
eliminated. AS q matter Of fact, there