The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1917-05-24
TO
THE EDITOR
WAR TAxEs.


FAlRMoNT, May 24.-[Editor The
West virginian. THE proposed war
tax bill, now pending before Congress,
is an Ill considerate measure and GER
tainly cannot be satisfactory to the
committee who framed it. Many of
its measures are vicious and objection
able. For example Sections 5O4 and
600.
Section 5O4 provides for tax OH
the amount paid for all advertising
and advertising matter, other than
newspaper and periodical space. 1t is
estimated that this will produce a
revenue Of $7,5O0,OO0. This measure
to firm who depends largely on d..
rect form Of advertising, works an I'M
usual hardship. In the first place, the
manufacturers produce articles of mer-
chandise and advertise same, are COM
PEELED to pay tax on all Of the numer-
Gus increases on the stationery used
for this purpose and to also pay an
increase postage rate, while other man
ufacturers who use newspaper or space
! in periodicals, and who spend three to
five times the amount on advertising
are not paying anything in the way
Of tax.
Section 600, provides for per cent.
tax on gross sales of several classes
Of manufacturers enumerated below.
The amount which each class is ex-
pected to yield is indicated by the fig
ures opposite their respective names,
the total being $11S,75O,O0O.
Automobiles ..............S6S,OO O,OU0
Tires and tubes ........... 12,500,OOO
Musical instruments ....... 100000
Motion picture films ...... 100000
JeWelry ..........".'..'.. I'oUO'VUO
Sporting goods ........... 100000
Pleasure boats .......... 100000
Perfumes and toilet articles 4,75O,OOO
Proprietary medicine 5000. S,5O0.OOO
Chewing gum ............. l,OOO,OUO
The specific objection to the pro-
posed levies are:
First: That only few industries
have been singled out arbitrarily to
bear them and then they are unfair
and discriminatory.
Second: That they are based on
gross production and not on net earn
ings. They will unquestionably de-
stroy a number Of successful business
enterprises in the line Elected and will
tend to eliminate production and handl-
cap industry.
Third: 1t is unjust to expect these
Industries to bear every tax that all
others hear and in addition to impos-
ing upon them tax Of 5 per cent. on
gross sales from which the others are
exempt. The consequence OF which
is that only the stronger concerns will
survive under the proposed measure,
consequently resulting in monopoly
for the stronger and larger concerns
A more logical and equitable method
of raising revenue to meet the expense
of the war, would be to place per
cent. tax on the value Of all kind of
products, manufactured in this country,
as well as to place per cent. tax
on all coal mined and marketed and on
all oil and gas mined and marketed.
The World almanac for 1917, giving
the latest available figures, shows that
the manufacturers in 1914 Of the Uni
ted States, produced $24,241, $4,000
worth of goods. This amount In the
year Of 1917, will probably reach the
thirty billion mark. Figure the prod
ucts for the present year at the round
figure of twenty-five billion, for the
goods manufactured, and figure 1 per
cent. tax on this amount and the gov.
eminent has a revenue Of $3.50, 100000,
while, If the same / per cent. is placed
on the coal and oil mined and market
ed, this amount would be increased to
over $5O0,O60,000. This method of tax.
alton equally distributes the burden on
all and works no hardship on any par.
ticular kind Of business. Should the
/ per cent. be placed on the meat and
flour products of the country, 1t would
not affect the consumer to any marked
extent, For example, If a packing
house, we will say, should market their
beef at an average price of 16 2,Sc per
1t can be seen that the per
cent tax on this selling price would
only amount to 1.6 per cent to the con-
sumner and would have no perceptible
effect on the retail price.
On articles like proprietary goods,
ETC., the / per cent. tax
In most cases would be absorbed by
the manufacturers or distributors and
would not effect the consuming public,
and taxation Of this kind would not
hamper production or tend to give any
particular business q monopoly by
pressing out the small producers.
Another efature Of the taxation Of
] per cent. as suggested is that It
would not disturb trade conditions as
1t could be collected at the source Of
production OF a minimum expense.
3.