Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-07-15
CHAMBER OF COMMERCE
HAS WAR TAX PROGRAM
Committee Makes Specific Recon-
menslations, Including Exemptions
for Safe Conduct of Business.
TAvoRs HIGH LEVY ON INCOMES
Heavy Assessments on Few Ar
ticles. LIxuries and War Ex-
travagances-Raise at Least 49,
OO0.00O,O0O by Taxation.

WASHINGTON. July lA.-Thc Cham
Der of Commerce OF the United States.
the most representative institution of
American capital. has asked it's MEM
bers TO indorse program OF war taxa
ton embracing an excess profits tax of
| 80 per cent. taxes OH tea. coffee to-
| bacco and beer. jewelry, musical in
! struments and gasoline. The program
represents the report OF the special
committee on financing the war. Mem
bers of the committee are John " Far
| WELL Chicago: Edward A. Filene, Bos-
ton; r. w. GOetzel. Kansas City; John
! II. Gray. Minneapolis: Stoddard Jess.
Los Angeles; Hugh Nick. Landon. In
dianapolis; Robert r. Maddox, Atlanta:
John 7. Scott Houston: Oliver NJ. w.
! Sprague. Cambridge. Mass: Jesse Isl
dor Straus, New York: J. X. Orr, At
lanta. and Edmund D. Hubert and J.
Lawrence I.aughlin. Chicago
/ The eleven specific recommendations
OF The committee arc:
That exemption allowed for war
taxes as imposed should be adequate
for the safe conduct of business enter
prises and that power to make adjust
ments that Will prevent iniuuitics
should be given to the administrative
! authority under the tax law.
That liberal provisions for amorti-
cation OF plants used on war work
should be made. with opportunity for
! subsequent readJustment 10 correct err
rors.
That there should be limited mum.
her OF regional boards of review, an
pointed by the administrative author
/ ity and making recommendations upon
appeals from preliminary assessments
/ That there should be equalization OF
! Federal taxes.
| That In computing taxable income
corporations should be allowed To
make two deductions-intcrcst and
charitable Eifts-which ,ney are de-
| MED now.
On condition tho proper exemptions
and opportunities for adjustment arc
allowed that a war pronts tax should
be imposed at Il high rate and should
be levied when 1t would exceed the
excess profits tax.
That upon the present general basis.
but with Inequalities removed. the ex-
ss-nrotits tax should be Increased
| That rates OF income taxes should
be increased and uncarned incomes
should be taxed at least as much as
earned.
Heavy taxes on a few articles OF
widespread consumption.
Heavy taxes on a selected list OF
luSuries.
Heavy taxes on selected list of war
txtravaGances.
The report urgea what Mt least S.
o0o. 600. noc he raised by taxation in the
coming year.
HIGH NAMES NOW
MEAN LOWER AFTER WAR
1T is important" says the commit
! tees report. lin considering present
taxation, to remember that the heavier
the taxes, which are now IMPOSED. the
more rapidly can taxation be decrea sod
after the war. and the more advan-
tageous the position of our country will
he in that period of keen international
commercial competition. when coun-
tries then bearing heavy burdens OF
taxation Will be correspondence handi-
capped. AT present, however favorably
the ratio of our taxes TO our expendi-
lures compares with the ratio Of other
countries, in such countries as Eng
land the rates of tax arc very consid-
crably higher than our rates"
After declaring that the present ex-
cess profits tax is apparently efficient
in handling four-f ifths OF the nations
profiteering in one-fifth OF the business
world the report says:
For this reason. it is proposed to
enact war profits tax with exemption
of fair return as carried on capital
or turnover of sufficient spread as a
fair and equitable basis. but with a
very high percentage OF 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 he greater. We suggest the de-
STABILITY of maintaining the general
basis of the present excess profits tax.
but with increased rates, perhaps as
high as SO per cent instead or the
present 60 per cent
HIGH TAXES WILL
REDUCE CONSUMPTION
'For the purpose or enforcing re-
duction in uncsscntial consumption and
economy which is by all students OF
war finance deemed OF vital impor-
lance, taxes on certain articles of gen.
eral consumption and taxes on "a va
riety of articles of luxury are proposed
| There is q threefold purpose in these
taxes; the first obvious purpose is TO
secure revenue; the second is that taxes
will result in less waste by inducing
a more economical use OF commodities
thus taxed and result in greater
which savings can be invested in Lib
erty bonds; the third purpose is TO re-
duce demand for articles thus taxed
SO that material. equipment and la
Dor, which otherwise would be en-
ployed to produce these commodities
naturally will turn toward more essen
tial employment"
The suggested consumption taxes I'm
cludc tea, 90 cents n pound: coffee
cents a pound: tobacco. so cents a
pound: beer. $40 a barrel. y moderate
tax OF gasoline is suggested
AS a subject for discussion and COM
ment from the members Of the organi-
"a tion. tho committee put forward
economy bonds" An extra income
tax Of about 10 per cent is suggested.
y taxpayer could avoid payment OF the
super1ncome tax by buying three
four times its amount in economy
bonds" These bonds would be non
transferable and ineligible for redis
count at IL reserve bank or other in