Evening Republican, Volume 23, Number 114, Rensselaer, Jasper County, 11 May 1920 — AGREEMENT ON SOLDIER BONUS SUBSTITUTE [ARTICLE]

AGREEMENT ON SOLDIER BONUS SUBSTITUTE

Washington, May 10.—Republican members of the house ways and means committee agreed today to bring in a substitute for the soldier bonus bill with the proposal for a 1 per cent tax on sales eliminated as a means of raising the necessary funds. Other tax provisions of the bill would be extended over three years under the agreement. Under the new bill compensation for home service is reduced from $1.25 to $1 for each day of service, while payments for foreign service remain at $1.25 a day. Payments would be made for service from April 6, 1917, to July 1, 1919, under the new bill instead of April 6, 1916, to January 1, 1920, as under the pending measure. Payments of the cash bonus would begin April 1, 1921, and be continued in twelve quarterly installments. The four options for the cash bonus, home or farm aid, paid up insurance and tuition for education would have a 40 per cent increase in value over the cash bonus, under the sub-measure, instead of being determined on a- basis of $1.75 a day for each day of service. The plan of reclamation of land so as to provide farms was changed in the substitute bill to eliminate the SI,OOO loan and also to reduce the authorization for carrying out | the scheme from $300,000,000 to $250,000,000.

Eliminate $400,000,000.

The republicans estimated that approximately $400,000,000 in the cost of the original measure has been eliminated and that the remodeled bill would call for a total expenditure of $1,400,000,000. Taxes levied by the bill would become effective next December and would include the increase on incomes, tobacco and real estate sales and a new levy on stock and grain exchange Chairman Fordney, of the committee, said tonight that the new bill would remove much of the opposition in republican ranks resulting from the original proposal to raise some of the revenues through a sales tax. The new measure will be offered to the house as a compromise and Mr. Fordney < said a caucus probably would not be necessary.