Evening star., 1924-05-17
Bonus and Tax Reduction.

presumably passing the bonus bill
over the Presidents veto today. at
tention centers upon the Senate with
respect 10 the fate OF this measure.
1t is plain that very few votes will
determine the result in the upper
chamber. Two-t1irds are required To
pa IS the bill finally. sixtyfour in the
full membership. On its original pas
sage the measure was approved by
sixty-seven senators. If all who voted
to pass il then vote similarly now it
will become a law despite the veto.
But since that action was taken the
veto has interviewed. The President
has stated his reasons asains; it in
terms that are recognized as strong
and by many legisla tors are acknowl-
| edged TO be compelling. viii they
sway enough of the advocates of the
bill to prevent its passa ge?
The Senate will not act until next
| week. Meanwhile the reaction Of the
country will be felt. What is the pub
lie feeling on the subject? Already
ii being expressed. positively.
luCusn no equation can be stated.
there is evidence that the preponder-
ant sentiment favors the Presidents
veto.
To the country at large the question
stands thus: There can be no tax re-
duction if a bonus is granted. There
I is no esca ping that fact. However
|
| may have been changed by Congress
in the shaping Of the tax measure. his
| showing OF the resources of the Treas
ury remains unaffected. 1t is possible
to reduce the revenues to the point of
actually meeting the expenses as they
are at present set. and il is not pos
sible to reduce them if a heavy bonus
charge is put upon the government
without causing deficit.
Congress has been attempting to do
this impossible thing. 1t has passed
bonus bill which will involve an imme-
diate charge of s146. .000. 900, and it is
about to lay before the President bill
which reduces the revenues to an un-
known amount, certainly below the
point where the current expenses can
be met plus the bonus cost. A deficit
is assured if both bills become laws
To meet that deficit money must be
borrowed, now or later. To pay those
bonds larger revenues will be re-
ouired, which means another revision
Of the tax scale upward.
There can be no apprecia BILE tax re-
duction together with a bonus. That
fact is manifest TO the people, and
their response to the suggestion that
both be attempted is certain to be posi-
tive. If both houses vote to pass the
bonus bill over the veto. and if then
the tax bill is laid before the President
he cannot consistently sign it. He
cannot go before the country as ap-
proving q measure which is directly
incom patible with a course already
taken.
1t is not believed that a tax bill, if
vetoed by the President on the ground
that it so impairs the revenues as to
make it impossible to meet the bonus
charges-assuming that the bonus bill
is passed over the veto-could muster
enough votes in both House and Sen
ate to pass in the same way. Thus the
Senate, if the House votes today as is
expected, will next week face the
question virtually Of tax reduction.
The country expects tax revision.
1t has been promised it. Both parties
are seeking credit with the people for
effecting it. There is no partisan divi-
sion on the broad question of giving
it. Hastily, for partisan purposes, in
compliance with pledges given long
ago without consideration of the effect
upon the fiscal situation. a bonus bill
has been passed. The President gave
warning that both measures could not
be enacted into law. He has now
vetoed the bonus bill primarily on the
ground that it entails a buGden that
cannot be borne.
A vote to pass the bonus bill over
the veto is vote against tax revision.