Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-08-07

TAX TAtuel lpdu al eASeSS $
levy.
The new tax of one cent. for each
rs cents paid on parcels post pack
ages was said in the report to remove
discrimination in favor Of the rail-
roads and the parcels post.
In addition to this" the report
said. your committee can see no in
trinsic reason why, in this present
emergency, the government should not
impose tax upon this method OF
transportation, especially in view OF
the fact that the rates on first ana
second class mail are increased"
The House five per cent. taxes upon
electricity. gas and local telephone
service were eliminated because 1t
appeared to the committee that this
tax would fall with very great sever
ity upon the people Of moderate means
as we'll as the poorest classes, who a,
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 running small ma
chinery like that of the sewing ma
chine The committee felt that tax
of this character ought not to be I'M
posed 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 recommended that the tax
upon charges for telephone service to
subscribers be eliminated"
Striking out of all insurance taxes
from the House bill was based upon
tie belief that excise taxes upon in
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 upon
many manufacturers was defended be-
cause the manufacturers also must
pay high income and excess profits
taxes. Your committee felt" the re-
pert said. that only where the condl-
tions arc exceptional should such
manufactu gross sales tax be JUS
tifiable." For these reasons the House
tax on patent medicines was reduced
to two per cent
Automobile Taxes
PROPOSED new federal license tax on
motorcycles and automobiles based
upon the original cost in lieu Of the
House manufacturers tax, was ex-
planned as follows:
"A gross tax upon automobile manu-
facturers was first considered but on
thorough investigation it appeared
that ever so per cent. were making
very small profits. A few were MAX
ing enormous profits. A gross produc-
ton tax in size sufficient to produce a
substantial return would have driven
out of business a large majority Of
automobile ma manufacturers. Your
committee concluded that the automo
bile 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 pur-
chaser moderate excise tax upon the
owners of automobiles and motor
cycles
Declaring that the new tax on cab
arets and retention of taxes on other
amusement admissions is justifiable
the report said the tax on moving
picture theatres charging less than Is
cents had been eliminated. because:
THE moving picture show has be-
come a national institution. 1t pos
sesseS many valuable educational fea-
lures. They are largely patronized by
people of small means"
Keep House Stamp Taxes
House taxes on club dues We're elm
-
difficult to reach clubs properly tau
able and at the same time exempt
those which should not be taxed.
Most House stamp taxes, virtually
those of Spanish War days, the report
said, have been retained. The now
one cent stamp tax on ali bank
checks, it was said. was provided be-
cause prevalent in NOSE belligerent
countries and because there is no
good reason why this source. which
would yield substantial revenue,
should be overlooked"
The House general 10 per cent. tar
iff levy. the committee declared. would
have taxed nearly 1000 articles and
yield 5000 DOC, 900.
There is no estimate, however. of
the amount the consuming public
would have to pay" the report said.
so sweeping a change would have
brought consequences thought clearly
undesirable"
The committee, it was stated, sub
stituted for the House 10 per cent.
tariff levy moderate, temporary ex-
else taxes" of one-half a cent per
pound on sugar, five 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 10 little
more than IS cents per capita, sum
so small It would hardly be felt by the
consumer. A considerable part is like
~ to be absorbed by the producers and
dealers. They are small compared
with similar taxes In practically all
belligerent countries"
Tax on Publishers
The increase of IA cent pound in
second class mail rates and the i've
per cent. net profits tax against pup
fishers on profits over $4,000 annually,
in lieu of the House zone rate increas-
es. was commented on as follows.
~f th.a