The Republican. [volume] (Oakland, Md.) 1877-current, 1924-05-29
OUR WASHINGTON LETTER.
Veterans of World War Will Re-
ceive Various Amounts
Under New Bonus Law

passed the bonus Dill over his veto
by two votes. LaFollette, Couzens,
Watson and Mccormick were absent
and impaired, as were four Demo-
Gratis. What the veteran will get out
of the bonus is problematical. If
after GO days training he served so
days or less he will get in cash 81 a
day for each day at home and SIPS
for each day overseas. If he served
longer he will get an insurance policy
payable in twenty years, at the same
rate, with a maximum of $500 for
home service and 1925 for overseas
service. The estimated average value
of the policies, at the end of 20 years,
is 1862. After years the veteran
can borrow 90 per cent not of the
total value of his policy-but of its
then value as paid up insurance.
There is grave fear that money lend
ers will devise some scheme for loan
ing money, at usurious rates, on these
policies, so that most veterans will
get very little out of the bonus.
1t will require an army of clerks
to administer the bonus, estimated at
1000 to 10000. 1t will cost the tax
payers $10,0O0,000 a year to admin
lister the law, or at least $200,000,0O0
in the twenty years. The total cost
Of the bonus itself will be from $500
to 5000 million dollars. This means
that there can be no real reduction
of the national debt and nopermanent
reduction of taxes. AS the national
election comes in November, there
may be tax reduction now, but it will
have to be made up in increased taxes
later.
Senate and House conferrees have
agreed on the tax reduction bill, but
it remains to be seen whether Presi-
dent Coolidge will approve or veto it.
1t is a complete reputation of the
Mellon plan, on which the President
has insisted. The publicity" feature,
which Mr.. Coolidge said would compel
him to veto it, though modified, is
still in dangerous form. 1t provides
that a committee of Congress can call
for and make public any income tax
returns which 1T regards as german
to its work; also that when any APP
peal for a reduction of more than
$4,000 in taxes is made the hearing
shall be public. The opportunities
these provisions will afford to bust
ness men and corporations to get the
inside facts regarding their competi-
tors business, and especially afford
the big corporations to gain informa-
ton with which to ruin their smaller
competitors are regarded as a grave
menace to the business of the coun-
try and as likely to be used to the dis
astrous injury of consumers.
Tables published by the Democrats
in support of their rejection of the
Mellon plan show the huge taxes (40
per cent on incomes of S1,000,000 or
more) which the very rich would have
to pay. But they carefully conceal
the fact that experience has shown
that the very rich pay no such taxes
because they put their money into
tax-free securities, avoiding prac-
tically all tax. According to the
Democratic leader, Simmons, the man
with an income Of $1,000,000 a year
would pay tax of $550,000 under the
present law and S429,6OO under the
new, Democratic-insurg law.
Why the taxes of a man with that in
come should be reduced at all Senator
Simmons does not explain. Secretary
Mellon has shown that the man with
that income will pay almost no tax,
because of the taX-eXempt securities
available, but that if Congress would
reduce his taxes to 25, instead of 40
per cent he would pay taxes because
the chance of making more money
than from tax-exempt securities, even
after paying the rs per cent income
tax, would induce him to put his
money into business, thus giving
more people employment, adding to
the general prosperity and reducing
the cost of living for everybody.
Crown Prince McAdoo continues to
pick up delegates to the increasing
anxiety of the Democratic leaders,
AS the New York World, leading
Democratic paper, says, the Demo
Gratis can hope to win only on the plea
that they will put an end to graft in
Washington, and McAdoo, with his
Doheny retainers, his collection of
big fees from the Republic Iron &
Steel Co., for inducing the Treasury
to reduce its taxes, etc, cannot win
on such platform.
E. L. Doheny won first blood in the
legal fight the Governor is making
on him. The Supreme Court of the
District of Columbia decided that
Governmet counsel could not compel
his son to testify before the grand
jury and that his refusal to testify
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