Evening journal., 1918-07-15
heavy TAX Increase
FOR WAR ADVISED
u. S. Chamber of Commerce
Committee Proposes
80 P. c. Levy
EXCESS PROFITS
ON ALL LUXURlES

WASHINGTON, july lo.-lue ucW Ne'
tax program OF a special war flnancins
committee OF the Chamber Of Commerce
Of the United Stales. which, it was an
nounced yesterday. has been submitted
10 a referendum Of the business men OF
the nation, recommends heavy increase
In all war taxes with an eXoess-prohts
tax of so per cent cent.
Eleven specific recommendations lot
war-revenue legislation were submitted
by the Chamber OF Commerce TO its
membership, in addition TO a repetition
OF the committees earlier declarations
against special profits arising out OF the
war. of ita warning Of the necessity for
economy and the elimination OF waste
and extravaganza and its arguments
favorable TO heavy war taxes. the
recommendations OF the committee fol-
low:
That exemptions allowed before war
taxes are imposed should be adequate
for the safe conduct Of business enter
prises and that power to make adjust
ments that viii prevent inequities
should be given 10 the administrative
authority under the tax law.
That liberal provisions for amortlza-
fion Of plant used upon war work
should be made. with opportunity for
subsequent readjustment to correct
errors.
That there should be a limited num-
Der of regional boards Of review. ap- /
pointed by the administrative authority /
and making recommendation upon sp- |
peals from preliminary assessments.
That there should be equalization OF
Federal taxes.
That in computing taxable income |
corporations should be allowed to make
two deductions interest and charitable
gifts), which they are now denied.
or condition that proper exemptions
and opportunities for adjustment are
allowed, that war-protts tax should |
be imposed at a high rate, and should
be levied when It would exceed the ex-
cess-profts tax.
That. upon the present general basis
hut with inequalities removed, the ex-
cess-profts tax should be increaseu.
That rates on income taxes should pe
Increased and unearned incomes snould
ne taxed at least as much as earned
Heavy taxes upon a selected list oi
Heavy taxes upon a selected list OF
war extravagsnces. ooo =, =.
referring TO the s2A,OOOooO'OOO 10 ne
rslsed during the fiscal year, the COM
nittee suggests that the pest possiple
scheme of taxation should De souslt
N .fhe hope II VIII raise al least
ss00O.O0OO00. a., ,,,,,,,
FTt Is important" says the commit.
tees report ain considering pressns
taxafion TO remember that the hes.iel
the taxes which are now lhposeu tns
more rapidly can taxation be decreassu
after the war and the more adVantase-
ous The position OF our country VIII ps
IN that period OF Keen lnternstion,ai
commercial competition when countries
then bearing heavy burdens OF I taAssioI
will be eorrespondingly hahaicspp.s,u'
Al present, however favoraDiy lne raIlo
OF our taxes TO our expenditures e1nl-
mares with the ratios OF other countrles'
Z, ssch Countries as England the rates
Of tax imposed are very consii0i'Dis !
higher than our rates.
The committee points OUT inst tne :
tax, although fruitful In
-evenue and apparently efficient as to Y
'our-fffhs Of American business con-
,e~ns has failed adequately 10 reach ! /
arge profits. directly due to the war, OF 3
The other NTH. It says: c
"For this reason II Is proposed TO |
,nact a war-pronts tax with exemption I
M a fair return as earned on capital or !
turnover. of sufficient spread, as a fair I
and equitable basis, but with very
high percentage on the excess turned
over to the Government IN taxes. This
would not be additional TO the existing
excess-profits tax. but In each case one
or the other would apply accordingly
as the result In taxes would be greater.
I'VE suggest the desirability OF main
tanning the general basis Of the present
excess-proflts tax. but with Increased
rates, perhaps as high as so per cent.
instead OF the present GO per cent"
The chief sources Of new revenue as !
outlined by the committee should be |
the income tax, a tax on the excess OF
profits over the present exemption, and |
drastic tax on all war profits above a
certain return sufficient 10 permit a
business TO be on with safety.
Regarding consumption taxes the re-
port says;
For the purpose Of enforcing reduce
tion IN unessential consumption and
economy, which is by all students OF
war finance deemed OF vital import |
ance. taxes on certain articles Of gem
eral consumption and taxes on a variety |
of articles OF luxury are proposed |
There is a threefold purpose in these ,
taxes.
"The first obvious purpose is to Sc
cure revenue; the second is that taxes
will result In less waste by inducins |
a more economical use on commodities
thus taxed, and result In greater
margin Of earnings over expenditure,
which savings can be invested in Lib
erty Bonds; the third purpose Is 70 re.
duce demand for articles thus taxed So
that materials, equipment and labos
which otherwise would be employed /
10 produce these commodities will ma
turally turn toward more essential en-
ployment"
1t is suggested that both consump- |
tion taxes and the tax on luxuries be /
placed upon few articles and that |
they be made heavy rather than that
light taxes be put on a large number of
commodities. Some suggested consump4
tion taxes are Tea, twenty cents a
pound; coffee, eight cents; tobacco,
nifty cents; beer, $40 barrel. A
moderate tax is proposed on the use
OF gasoline. Articles classed as luxuries
include jewelry and musical instru-
ments.
Proper allowances from earnings for
amortization, especially OF plants Great
ed for war work, the committee con-
otstI