Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-27
HOW TO- ASSESS TAXES
IS TOLD CONGRESSMAN
National and State Manufactures
Associations Give Committee
Their Views.
PUT TAX ON ALL AUTOMOBILES
Movie Stars Send Representative to
Plead for Exemption From Excess
Profits on Incomes Derived Solely
Through Their Art.

WASHINGTON. June 26.-Big buei.
ness, ms represented by the national
and state manufacturers associations
gave the Ways and Means Committee
to-day widely divergent views as to
how tho government should collect
taxes on the excess profits due to the
war. The national association urged
adoption of the English system. which
separates pre-war profits from war
I profits. while tho State associations
favor retention of the present system.
| with greater exemption on invested
capital
a Federal license tax on all auto
mobiles. whether used for pleasure or
! in business, was recommended by the
| National Automobile Dealers Associa
ton. Their representative. T.. w. A.
Nesper, OF ST. Louis. estimated that
such "A tax will raise at least SOS, 600, 600
Il year. The association will not OPP
pose "A higher tax on manufacturers
sales, but regards a tax on gasoline
as unnecessary.
Stars of the motion picture world
| including some OF those whose sal
aries run uD 10 six figures. sent as
their representative Grant Carpenter.
of Los Angeles. Cal. where rs per cent
to plead for exemption from the ex-
cess-prohts tax on incomes derived
solely through their art. They recon-
mended heavy taxes on unearncd in
comes. an emergency tax on accumu
lated wealth and inheritances. heavy
tax on AL profits of persons manufac-
turing articles used in tie war. and
4 tax on all private homes costing
more than $4,000
The clash between the national and
State associations of manufacturers &C.
Cured when James a. Emery was call
cd upon 10 speak for the former. and
]. Frank Zoller. of Schenectady. ap-
reared as the representative OF the
state bodies. Emery told the commit
tee that upon this vital point in the
tax law the two sets OF associations
differed. He presented the view OF the
national organization and urged that
the following method OF deriving ex-
cess profits be adopted:
SUGGEST TAKING 1911 AND
1918 AS WORKING BASIS
Select ave years before the war. pre-
fcraole 1911 to 1915, and ind what the
profits were during that period.
Out of these five years allow the
manufacturers themselves to select
three years by which the average an
nual profit shall he fixed.
Add TO this figure the average normal
increase of capital invested and the
profits earned upon It.
Upon the figure thus obtained levy
the amount Of tax which the govern
ment needs. consistent with the ability
of the company to pay the tax.
The argument presented by Vesper
on behalf Of the automobile dealers in
tereStcd the committee because he sub
mitted a schedule of proposed rates to
he imposed as a Federal tax on all
automobiles. The schedule was fol-
lows:
Car costing ssoo or less. SIS: cars cost
ing up. to LOO, $40; cars costing up to
$4,000, SIS; cars costing up to $4,000.
$40; cars costing over $4,000 s25
Nesper said this tax could be col
!ected at the same time the State or
county tags are sold. He estimated
that II would produce at least $685.
100000 II applied to the 100000 cars
said would ne more. If the committee
chose TO raise the figures in his
schedule. additional revenue might be
secured he explained.
The case on behalf Of tho moving
picture stars presented to the COM
mittee an altogether new phase Of the
taxation question. Carpenter was sent
here by the Motion Picture War Ser
vice association which, he said was
organized for the purpose Of unifyinE
and concentrating the patriotic work
OF the $4,000 people employed in the
motion picture business
The formal suggestions given to the
committee by the association were an
follows:
/ That a heavier tax be placed on
unearned incomes Of more than $4,000