The sun., 1918-11-07
THE SIMPLICITY OF A TAX
ON CHECKS.
The Spigot Of q Barrel That Holds
3O3 Billions Yearly.

To THE EDITOR OF THE SuN-Sir: Let
me add q word or two on the PROPOSE
ton OF q tax on checks recently dis
cussed in your Journal.
The Clearing House exchanges OF all
the banks in the United States in 1917
are reported at approximately 500 bill
lion dollars. This amount has passed
through the banks entirely in the form
OF checks and drafts. It does not in
clude payments In metallic or paper cur
rency. One per cent. on the above
amount would give an income Of above
50. 900. 900. 900 a year. This tax on
checks would now into the treasury
day by day and Is the easiest Of all
taxes to collect All that is necessary
Is that the payer or signer Of the check
shall fill out folder attached to the
original check for one per cent OF the
original check. payable to the United
States Treasury. No bank to be allowed
10 honor or cash check except with
that one per cent folder attached to It.
A tax Of one per cent simply means
an addition OF one per cent. to tho
price Of every kind Of commodity paid
for with money in the form OF checks
which addition Is Insignificant. All
taxes raise the prices and cost OF COM
modities, but this check tax is In that
respect on the whole more equitable
than any other tax. II may be expected
that all business transactions would
adjust themselves automatically to that
check tax. The laborer and working
man who does not keep q bank account
will not be affected by Il. Neverthe-
less II Is Just as desirable that he be
reached also with a tax. A Just and
easy way to reach him Is tax on a
few articles Of consumption like tea.
coffee. sugar and alcoholic drinks. This
kind OF tax reaches everybody. but
people who keep bank accounts and are
supposed to have more wealth than the
ordinary laborer would be taxed in ad-
dition through the above suggested
means
This tax should take the place OF the
income tax up TO the amount Of &c.
900 incomes Business Of $4,000 an
nual profits will probably IN that way
pay from 3 to 10 per cent. tax upon
the profits, because In order TO make the
proft there would have to be a turn
over OF from three to ten times In the
amount Of gross income.
Incomes OF over $4,000 would then
be subject to the surtaxes. payable only
once a year. but could very we'll nc ar
ranged to be paid twice a year. which
would be easier for the taxpayers.
There are millions OF farmers and
small business men who do not keep
accounts as is necessary for the pre-
sent method of income taxation with
its multiplicity OF perplexing definitions.
All persons. firms and corporations with
less than $4,000 profit would be freed
from the necessity OF paying accountants
for keeping their books. The tax would
also have the effect Of checking specula-
tive transactions on exchanges.
This check tax is so easy OF collection
that II might be continued as a stand
ard form OF taxation after the war.
merely reducing the percentage from
one per cent. down to whatever revenue
the Government desires to obtain from
IL If the amount OF one per cent. is
not sufficient. 1t could be raised TO ~
or per cent. all OF which Is one OF
the simplest forms OF income taxation.
giving daily and continuous flow OF
revenue 20 the Government L.
NEW YORK, November 6.