Congress and the Bonus

Report Outline
Summary
Special Focus

Summary

1. That the Mellon tax reduction plan has made a favorable impression upon the country and is steadily gaining in, public support there can be no doubt. In proportion as the tax plan gains support, the soldier bonus appears to be losing ground, due to Secretary Mellon's reiterated assertion that “a soldiers'; bonus would postpone tax reduction, not for one but for many years to come. It would mean an increase rather than a decrease in taxes.”

2. The strongest public pressure in many years is being brought upon Congress for adoption of the essential features of the Mellon plan. While the advocates of a soldier bonus at present command greater voting strength in both houses of Congress than at any time in the past, there is reason to believe that bonus sentiment in Congress has passed its peak and will decline hereafter under the pressure for tax reductions.

3. The strategy of bonus supporters calls for the utmost expedition in securing final action on the bill in the Senate, while the strategy of bonus opponents calls for delay. “The tide is all running one way,” Senator Smoot, chairman of the Senate Finance Committee said today. “We can lose nothing by delay and nay gain a great deal.” He admitted that his poll of the Senate shows the opposition to be more than two votes short of the number necessary to sustain a veto. He asserted, however, that when the condition is such that the opposition can count on two additional votes, the remaining votes will be in sight, and “the situation will be satisfactory.”