The Washington times., 1924-01-09
L0NGWORTHFOR
GUT IN TAXES
At ONCE
House Leader Fighting to Keep
Bonus Second on List Of
Legislation.
CONTINUED from First Page.)

Continued from First Page.)
the same bonus bill and the source
Of authority was the same Treasury
Department and yet the results
ave been as follows:
In the first set Of figures the
Treasury said that the probable
cost of the bonus during the first
four years would be approximately
one hundred and fifty million dol.
lars q year. In the second set Il
said that the cost during the first
four years would be approximately
two hundred million dollars q wear.
In the third and last set Il raised
the estimate to two hundred and
fifty million dollars q year.
One great difficulty in these cal.
culations Is that the bonus bin con-
tains three choices for the ex.
soldier; namely, an insurance Ger.
tificate plan, a farm and home and
land settlement plan, and a vo.
cational training plan. Each ex.
soldier must choose between these
plans; and nobody on earth can
possibly make any sort OF precise
guess as to which one he win
choose.
Moreover. under the insurance
cert .ficate plan. the ex-soldier is Der.
United to borrow money in certain
ways and at certain times, and II he
defaults in the repaying Of his Dor
rowingS, he 10 penalized. The ques.
ton is: How many ex-soldiers will
borrow and how many of them,
having borrowed, will default? I'm
less man can answer that question,
his estimate Of the cost of q bonus
many be hundreds of millions OF dot
lars wrong, and the cold truth il
that the man who can answer that
question does not exist either in the
senate or in the House or in the
Treasury Department or anywhere
else.
Inquiries addressed to the Treas.
ury Department as to what percent.
age OF borrowings and as to what
percentage Of defaultings the Treas.
ury Department was assuming in Its
calculations have brought replies
which clearly show that the Treas.
ury Department is just as much at
sea In this matter as any other part
Of the Government.
Contention BY LOngwOEth.
It is contended accordingly by
Longworth and his allies that no
precise calculation at all can be made
for the bonus and that the only sen.
sible thing to do is to proceed to n
reasonable tax reduction without
waiting to try vainly to discover the
size OF the dent that a bonus would
make in 1t. A sort Of general leeway
could be left for the possibility of
that dent, according to their view,
but positive tax reduction should re
Immediately worked out and put
through.
In fact, they allege that II the
Republican party in Congress passes
a bonus bill before passing a tax
reduction bill 1t will hand itself over
for slaughter to the Republican in.
surgents and the Democrats.
Their argument, which they are
busily circulating among their col.
leagues, Is as follows:
Suppose that before passing a tax
reduction bill we pass q bonus bill.
Then by Joining forces the Repub.
Hcan insurgents and the Democrats
could prevent US from passing our
sort Of tax reduction bill and could
pass a bill Of their own sort which
President Coolidge would have 10
Veto"
Another Burden Cited,
Then the session would come to
an end with no reduction OF taxes
at all but with big new bonus
tax burden imposed upon the pub
lie. What will the voters say to
that when they go to the polls in
Novonnhar9 TharnPono ~-,L-1I-- -
are for the bonus or aga INST It. let
US reduce taxes first and be sure
that we have got them reduced be.
fore we commit ourselves to any
great expenditure"
Such is the tactical party argu.
ment which it is confidently be.
lieved Longworth will present with
! 1e-and-death fervor to the Repub-
Hcan caucus.
Copyright. 1924 Washington Press
Service.)