The Washington herald., 1918-09-11
CONSUMPTION
TAXES URGED
Levies on Food Essentials
Favored by Longworth
and Hull.

Consumption taxes on coffee,
! sugar. tea and other breakfast table
necessities were urged upon the
House yesterday by representatives
Longworth of Ohio and Hull Of Ten
nessee. both Of whom discussed the
revenue bill
Mr.. Hull differed, from his Demo-
cratic colleagues on the Ways and
Means committee in recommending
customs taxes on these articles OIL
general consumption. He said the
imposition of such taxes would tend
to a more equabIe system of war
revenue legislation.
These taxes are honest" he said,
"and every dollar would go into the
Treasury. They would not be seri-
ously felt by the public and they
would be as little burdensome upon
the average householder as any
form of taxation that might be de-
vised. Consumption taxes may be-
come necessary in order to supply
part of the revenue needed for car
rying on the war"
Endorsed By Loagworth. -
Mr.. Longworth endorsed the con-
sumption taSes as the only revenue
to which the government can turn
/, to make up the deficit caused by the
prohibition of the manufacture of
beer. He gave to the House figures
showing that IL nationwide pro-
| hibition should become effective IT
| would mean a loss of revenue of al
most $4,000, 900, 900. He recommend
| ed a duty of cents a pounds Oh
! coffee. % cents a pound on tea, 10
| per cent on rubber, 20 per cent on
| wool, IS per cent on hides and an
extra cent on sugar.
In discussing the probable effect
| OF national prohibition, Mr.. Long
worth said:
NO matter what our opinions may
be as to the wisdom and justice of
the case. let Us not deceive ourselves
nor the country as to the revenue as
pect of the subject. We owe it to
| ourselves and to the country to speak
frankly about the ultimate cost of
| prohibition. It Is estimated that the
fakes imposed in this bill on the sale
of beverages containing alcohol will
produce a revenue OF 1905. 10000. It
is obvious, however, that If this source
Of revenue were destroyed completely
| the loss would be considerable more
than 81, ,O00, ,0GO, 900. There would be the
income taxes from persons engaged in
Z the industry, and the excess profits
taxes, both of which sources are es-
| tmated to produce 800 100000 more.
Then there would be the loss of
| revenue to various States, which
would have to be made up by other
taxes, so that instead of the present
bill being 5000. 10000 1t would be
ivery little over 5000, 100000"
J Mr.. Longworth said that the coun-
: try might well prepare itself now for
| the coming of absolute prohibition
and begin to study ways and means
of providing the revenue which will
have to be provided when the sale of
all intoxicants is forbidden.
Drawing a comparison between
the six sons of the Kaiser and the
four Roosevelt boys, Mr.. Longworth
said:
"All four sons Of former Prexl-
dent have been at the real front,
three of them married men with
children upon whom there was no
possible legal obligation. One of
them has perished gloriously upon
/ the field OF battle, two have been
wounded, one so seriously that he
has been invalided home; the only
one who has escaped injury ha,
been decorated for conspicuous gall
lantry in action. A son of the only
other living ex-President is at the
front"
Mr.. Hull expressed dissatisfaction
with the excess profits feature OF
the Dill and in this he took the
same position as Secretary McAdoo
VINO believes the rates are too high.
/ The senate finance committee to-
day listened to a discussion of the
bill by Robert r. Reed, of New
York. counsel for the Bankers In
vestment Association, and A. r
Thomas of Lynchburg, Va.