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Show oo G.O.P. ABANDONS SALES TAX IDEA Middle and Far West Are! Against Tax Plan of Financing Bonus WASHINGTON, Feb. 4 (By the Associated Press) Republican house 1 leaders are underatood virtually t j have abandoned the Idea of financing j the soldiers' bonus bill by a genei . Miles tax Opposition among majority mem-' 1 1 r-r s . mostly from the middle and far west, to a sales tax is said to be so strong as to threaten ilefeat of BUCh a program The alignment against il Is understood to lo practically that which forced acceptance of the 60 per cent income sur tax voted Into the revenue pill by the senate OR DEBT Ki t GIFTS Developments at further hearii-s today before the house ways and , means committee disclosed that In spite of Secretary Million's opposition to the plan a number of majority members favor the use of part of th? proceeda from the refunded British debt In helping finance the adjusted I compensation. They bellee this would meet with a j greater measure of public nppro,,l than would a program Involving bi raising of the entire amount by special spe-cial taxes Reprcsentat ivp Ramseyrr. Republican, Republi-can, of Iowa before the committee opposed the proposal, arguing that! such use of the money would be a ! breach of contract with the holders of I Liberty bonds, who he said, had be n told in th law adopted by conge- ta that tnc proceeds from the foreign debt would be used to retire the Llb-em Llb-em bonds Issued to raise the montv advun ed to the debtor nation DOUBLE GUARANTEE Chairman McFadden, of the bank-; Inc and currency committee, favored favor-ed the financing of the bonus through the sale In this country of the refunded refund-ed British bonds with the principal J and interest guaranteed by the American Ameri-can government as well as the British Brit-ish government. He contended that with this double guarantee the bonds would bring a higher price than would American government securities sold for th- aama purpose Increased inheritance taxes as another an-other means of financing the bonus were advocated by Mr Itamsoyer. who I said such taxes could not be passed on und would not be a penalty on In.-tlatlvo In.-tlatlvo and enterprise. He thought the present return of $ 1 54.000.n00 from (his source could be increased to $200,000,000 a year without Imposing any hardships. Chairman Kordney and some other members of the committee apparently! received this suggestion without approval ap-proval but other members indicated sympathy with it. |