The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1917-08-06

in many cases, with power TOT 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 point was
reached where it would become nee
essary to tax everything susceptible
to taxation. Light and heat are the
very last things which should be sub
iect to taxation. OR similar reasons
the committee recommended that the
tax upon charges for telephone ser
vice to subscribers be eliminated.
Striking out Of all insurance taxes
from the House bill was based upon
the belief that excise taxes upon in
surance is a questionable principle
and Should be subjected to tax only
as last resort" -.
Elimination or reduction OF all OF
the five per cent gross sales tax upon
many manufacturers was defended
because the manufacturers also must
nay high income and excess profits
taxes. Your committee felt" the
report said, that only where the con-
ditions are exceptional should such
manufactures gross sales tax be JUS
tifiable." For these reasons the
House tax on patent medicines was
reduced to two per cent.
Proposed new federal license tax
on motorcycles and automobiles oas-
ed upon the original selling cost IN
lieu of the House manufacturers tax,
was explained as follows:
"a gross tax upon automobiles was
first considered, but on thorough in
vestigation it appeared that over so
per cent we're making very small pro-
flts. A few were making enormous
profits. A gross production tax In
size sufficient to produce suostan.
tiaI return would have driven out OF
business a large majority Of automo-
bile manufacturers. Your committee
/ concluded that the automobile was a
proper subject for war revenue tax
and recommends for the high gross
sales tax, which might or might not
be passed on to the purchaser, a mod
crate excise tax upon the owners OF
AUTOMOBILES and motorcycles.
Declaring that the new tax on cab
arets and retention of taxes on other
amusement admissions is justifable,
the report said the tax on moving
picture theatres charging less than
25 cents had been eliminated, be-
cause:
THE moving picture show has be-
come a national institution. 1t pos
sesses many valuable educational
features. They are largely patroniz-
ed by people of small means"
House taxes on club dues were
eliminated, the report said, because
it was difficult to reac hclubs prop
erly 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 onecent stamp tax on all
bank checks, it was said, was pro
vided because prevalent in most bel
ligerent countries and because there
is no good reason why. this source
| W HUI GuUulu JlClu q 6uD0LlANLoA 4S'
cnue, should be overlooked"
The House general 10 per cent tar
if levy, the committee declared
would have taxed nearly 1000 arti-
Giles and yield $2OO,OOO,OO0.
| 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
ly undesirable.
The committee, it is stated, substl-
tuted for the House 10 per cent tariff
levy moderate, temporary excise
taxes" OF one-half cent per pound
on sugar, fye cents on tea, two cents
on coffee, and from three to five cents
on cocoa,
"If every cent of these taxes" the
report stated, were passed on to the
consumer, it would amount to little
more than IS cents per capita, sum
so small it would hardly be felt by
the consumer. A considerable part
is likely to be absorbed by the pro
ducers and dealers. They are small
compared with similar taxes in prac-
tically all belligerent countries"
The increase of Il cent a pound
in second class mail rates and the
five per cent net proats tax against
publishers on profits over $4,000
annually, in lieu of the House zone
rate increases, was commented on as
follows:
Leading representatives of the
publsers appeared to protest against
the zone system and presented evil
dence that it would be a serious mis-
take and in many instances entail
certain disaster. The combination
postal and special income tax, recon-
.nended as a substitute, is not regard
ed as perfect, but in view of increases
on first and second class mail and
parcel post, it was felt that some rea-
sonably proportionate additional tax
should DO imposed upon newspapers
and periodicals. having the privilege
of second class mail matter"
Substitution of a new plan of in
formation at the source" instead Of
collection at the source for income
taxes, the report said, will enable
the government to locate more effec-
lively all individuals subject to the
income tax" and stimulate colleC-
lions, lessen expense. The new plan
of taxing undivided corporate sur
plus, also, was said to insure larger
and fairer collections,
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