Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1924-02-01

confronted with a deficiency of $780,
100000 for the current fiscal year.
Mellon Figures Wrong
Today, the figures show that Mr..
Mellon was mistaken; he was "off"
nearly s1,OO0,000, 900, inasmuch as the
treasury shows surplus Of more
than $30O,OOO,OO
Mr.. MELONS cry of deficit last
year was sufficient to kill adjusted
compensation in 1923; his cry to kill
it in 1924, if possible, is that the
treasury is so fat now it would be
possible to reduce federal income
taxes by the amount Of the surplus;
but, if adjusted compensation is to
be provided, he claims, no tax reduc-
ton would be possible.
The treasury department has esti-
mated that adjusted compensation
under the Watkins plan would re-
quire $242,000,000 in the first three
year period, an average of $50, 900, 900
year. This could come out of Mr..
Melons $323,000,000 and still per-
NIT a very considerable reduction Of
taxes. But Mr.. Mellon doesn't want
to admit it.
The United States is financially
able to pay this debt, can afford to
pay it and except for big business
interests, wants to pay it and knows
it can be paid without disturbing eco
nomic conditions or interrupting
prosperity.
The Watkins bill eliminates from
consideration for adjusted compen-
sation the soldier or sailor who serv-
ed only 60 days or less; any veteran
dishonorably discharged from the
service; any conscientious objector;
any soldier or other member of the
military establishment who was paid
a bonus while in the service for the
kind of work he was performing, as,
for instance, the men in the spruce
division; any officer above the rank
of captain in the army or lieutenant
in the navy.
the time of their discharge from the
service is deducted from any COM
pensation they would receive.
The compensation basis is 81 a
day for service on home soil, or
$1.25 day for service overseas.
government in cash, except that a
cash settlement will be made with
all veterans whose compensation
credit would be $50 or less.
The maximum credit available to
any veteran is $500 for the man who
was not sent overseas or 1925 for
the veteran who was sent out of the
country.
This credit can be applied, by
loans obtainable on government GER
tificates, towards the purchase or i'm
provement Of a farm or home; or,
applied on vocational training; or
applied on the purchase of land for
settlement under one Of the reclama-
! tion projects which may be set aside
for the purpose by the National Vet
erans Settlement Board.
Option of Five Plans
The veteran may select at his op-
tion one, burt only one, Of these
plans.
Sources of finance provided by the
Watkins bill are as follows:
1. Moneys in the treasury of the
United States not otherwise appro-
priated.
2. A poll tax of $3.50 upon every
alien entering the United States for
settlement or residence for a period
longer than six months; and $50
poll tax annually upon every alien
already a resident Of the United
States.
! 8. A tax of 2 per cent per year
upon the gross income of every for
eign corporation in the United States.
! 4. Under revision Of the inherit
ance tax embodied in the revenue act
Of 1921, a tax upon the net value Of
estates of persons dieing. after the
act passed, ranging from 1 per cent
Of estates valued at $4,000 or less
up to 40 per cent of estates in ex-
cess of s10,OO0,O00.
S. An excess profits tax ranging
from per cent of net incomes ex-
ceeding 10 per cent of the capital
and up to 20 per cent, to 20 per cent
of the amount Of net income in ex
cess Of 33 per cent of the capital.
This tax applies to corporations,
partnerships and individuals in all
trades or businesses, with minor ex-
ceptions.
The bill provides for the repeal
by Congress of the taxes levied for
adjusted compensation when suffi-
cient revenue for carrying out the
provisions of the act have been
raised.
OF these sources of revenue
enumerated above, the alien admis-
sion tax, the alien poll tax, and the
foreign corporation tax are the only
new sources created. The excess
profit tax and the inheritance tax
are merely revisions of existing