Montana labor news., 1950-09-07
HOW ABOUT THE BONUS MEASURE?

HOW ABOUT THE BONUS MEASURE
On the surface the bonus initiative measure looks attractive
to low-income veterans. Al best, approval of the measure on
the ballot in November would be a flash in the pan for real
prosperity. -.
The proposal aims to put the state of Montana into debt
S22. 600. 900. Bonds would be sold to bring immediate cash
to pay veterans of World War IL $40 a month for domestic
service and SIS a month for overseas service. The bonds would
bear interest at the rate of 4 per cent which is another $3.50, 900
a year. A state wide crew of supervisors and clerical assis-
tants would be required to administer the program and this
would take more money.
The bonds are to be paid off from the proceeds of a two
cent sales tax on cigarettes Accommodating $22, 600. 900 from
such a tax requires sale of LOO. 600, 900 packages. 1t will
take 100. 900 Montana cigarette smokers 80 years to pay oft
the bonus debt if each smokes one pack OF cigarettes a day. In
addition, addicts of the flag will have to do some smoking by
night to pay the interest on the debt and costs of administration.
Undoubtedly a small amount of immediate good can be
.queezed out by a bonus. especially where grocery bills and
other obligations were paid and maybe a few dollars put into
q car, household appliances or bank account. Sales would be
stimulated for a short while. The tavern owners would have a
small revival of something similar to wartime business and
they like that. But when the money was gone the state would
still be in debt.
The most Objectionable feature of the bonus measure is that
the program would be financed by a sales tax, an unsound
method Of raising money for government. The sales tax is a
FLAT lew without regard to ability to pay and bears heaviest on
consumers. The overwhelming number OF consumers are low
income people whose tax payments actually increase under a
sales tax as they buy more goods
The cigarette is generally considered the poor mans smoke
and thus thousands of low income people, many of them veter-
as, would foot the bonus bill 1t was interesting to note dur
ing the Montana Legislative assembly in l949 that a bill to
increase the tax on cigarettes was passed by the lawmakers,
and fortunately vetoed by the Governor. while a tax on cigars
presumably the rich mans smoke, was given cold treatment.
all around.
The sales tax we now have on cigarettes is grossly unfair
and increasing the levy even for a soldiers bonus would make
it no more acceptable.
A much better way to help veterans is to bring greater eco
nomic and social opportunities for all people. If the energy
and zeal exerted to put the bonus measure on the ballot were
put into securing a legislative program for bringing concerted
power, water and land development in the Missouri and Co
lumbia valleys great enduring good would be achieved for vet
Grams and the whole Great Plains and northwest areas.
Investing $22.00 900 in land reform. even in Montana,
would bring much more economic security than a few inflated
veterans is serious. Only recently there we're more than 900
veterans competing for 81 farms to be distributed by lottery
on a bureau of reclamation project in Wyoming. That America,
the richest nation in the world. cannot do better than this for
the young men who fought in the foxholes OF World War IL is
a shame and nothing less
We need land development to give young men and their
families a better chance of agriculture. More than that. we
need to expand the Farmers home administration to give vet
Grams short OF financial resources help in establishing them
selves in farming. We need to hberalize the federal housing
administration and CI loan facilities to enable veterans to OBJ
tain housing loans without paying the excessive costs tackled on
by banks and private credit agencies who apparently use the
federal housing machinery as a floor for their operations with
out too much regard for the veteran except to get his business.
We need wage levels high enough and consumer prices low
enough to permit veterans in our cities to maintain themselves
and their families on a decent standard OF living. Farm
veterans need a better national farm program than we now
have. Along with all family farmers the farm veteran de-
serves parity of income without which land development and
rehabilitation loans are of little long time value.
The CT bill has helped veterans tremendously toward better
education and improvement of occupational skils. 1t takes
more than education, however, to carr a living. 1t takes eco
nomic opportunity. 1t also takes a fair deal in the economic
scheme of things SO that modest incomes are not snatched away
by those who profiteer.
Veterans and all voters should look carefully at the bonus
proposal. Rather let US work for programs that help the
veterans help themselves as independent citizens in an ex-
banding economy where farms, housing and jobs are sufficient
for a high standard of living.
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