The Fargo forum and daily republican., 1917-08-06

| liarly obnoxious kind but would DOS.
sibly compel tax payer to impair
his capital and thus diminish gov.
ernment sources of taxation. II
| would be one of those disturbing
taxes which would alarm business
and check industrial productivity. II
is very poor economy and would
hold out a threat Of uncertainty"
In recommending the graduated
war profits tax upon individuals as
we'll as corporations in lieu of the
present eight per cent excess profits
law, the committee said its plan is
similar to that of European coun-
tries, where IL has had marked sue
| cess.
I'VE must face the possibility,
even the probability" the report
stated, ''of even higher taxes than
are now proposed in this country
and we must adjust our system SC
that 1t will work satisfactorily even
under increased rates. Your COM
mittee has not been able to find any
satisfactory reason why individuals
| engaged in trade and business
should not be subject to this tax
(war profits) as well as corporations
! and partnerships" Under the pres
| ent law, the report stated, inflated
values to patents and trade marks
and watering of corporations stocks
makes evasion of the revenue law
possible, while the committees new
| basis is believed to meet the situa-
ton. Senator Simmons also point
ed out that the new plan is O war
| profits tax rather than an excess
profits levy.
The new tax of one cent for each
rs cents paid on parcels post pack
ages was said in the report to re-
move discrimination in favor of the
railroads and the parcels post.
I'm addition to this" the report
said, your committee can see no
Intrinsic reason why, in this present
emergency, the government should
not impose a tax upon this method
of transportation, especially in view
OF the fact that the rates on first
and second class mail are increas-
ed
Tax Would Hit Poor.
The house five per cent taxes upon
electricity, gas and local telephona
service were eliminated because ''it
appeared to the committee that this
tax would fall with very great sever
ity upon the people of moderate
means as well as the poorest classes,
who at the present time depend very
largely in the cities upon gas or
electricity to furnish them with both
light and heat for cooking as we'll as,
in many cases, with power for run
ming small machinery like that Of
the sewing machine% The committee
felt that a tax of this character
ought not to be imposed unless a
point was reached where it would
become necessary to tax everything
susceptible to taxation. Light and
heat are the very last things which
should be subject to taxation. For
similar reasons the committee rec
ommended that the tax upon charges
for telephone service to subscribers
be eliminated"
from the house bill was based upon
the relief that excise taxes upon i'm
surance is a questionable principle
and should be subjected to tax
only as a last resort"
Elimination or reduction OF all Of
the five per cent gross sales tax up
on many manufacturers was defend
ed because the manufacturers also
must pay high income and excess
profits taxes. Your committee felt"
the report said, that only where the
conditions are exceptional should
such a manufacturers gross sales
tax be justifiable." For these reas-
ons the house tax on patent medi-
cines was reduced to two per cent.
Proposed new federal license tax
on motorcycles and automobiles
based upon the original selling cost
in lieu of the house manufacturers
tax, was explained as follows:
"A gross tax upon automobile
manufacturers was first considered,
but on thorough investigation it ap-
peared that over so per cent were
making very small profits. A few
were making enormous profits. A
gross production tax in size suffici-
ent to produce a substantial return
would have driven out of business
large majority of automobile
manufacturers. Your committee
concluded that the automobile was a
proper subject for a war revenue tax
and recommends for the high gross
sales tax, which might or might not
be passed on to the purchaser, a
moderate excise tax upon the own
ers Of automobiles and motorcycles"
Declaring that the new tax on
cabarets and retention of taxes on
other amusement admissions is JUS
tifiable, the report said the tax on
moving picture theaters charging
less than rs cents had been eliminat-
ed. because:
THE moving picture show has be-
come a national institution. 1t pos
sesses many valuable educational
features. They are largely patron
ICED by people Of small means.
House taxes on club dues were eli
the report said, because IL
was difflcult to reach clubs properly
taxable and at the same time exempt
those which should not be taxed.
Most house stamp. taxes. virtually
those Of Spanish war days, the re-
port said, have been retained. The
new one cent stamp tax on all bank
checks. 1t was said, was provided be-
eaHse prevalent in most belligerent I,
countries and because "thefe is no !
good reason why this source, which |
would yield a substantial revenue,
should be overlooked"
The house general 10 percent tariff |
levy, the committee declared, would |
have taxed nearly 1000 articles and
yield S200, 200, 900.
There is no estimate, however, Of !
The amount the consuming public |
would have TO pay, the report said. |
$50 sweeping a change would have
brought consequences thought clear
" undesirable.
The COMMITTEES. 1t was stated, sub
stituted for the house 10 percent tar
Iff levy moderate. temporary excise /
taxes" of one-half a cent per pound /
1n sugar, Ave cents on tea, two cents i
in coffee, and from three TO five cents I
IN cocoa.
Only rs Cents Per Capita.
IT every cent Of these taxes, the /