The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-12


considered for revising and increas-
ing the war tax measures, may l not
present arguments through your COL
umns in favor Of tax on gross sales
The necessity for imposing large
taxes upon business is generally
recognized and assume that the three
most important conditions to be met
in deciding on the form Of tax are as
follows:
First, a tax which will yield the
amount needed by the Government.
Second. a tax which is equitable and
fair in It's application to businesses OF
the same type and character.
Third, tax which is easily ascer-
tanned and therefore easily collectible.
After discussing the subject with
mon representing many lines OF in
dustry l am convinced that a tax on
gross sales will come nearer fulfilling
these conditions than any other.
1t has been conservatively estimated
that l per cent. Of the gross sales of
corporations, partnerships and indi-
viduals actively engaged in the sale
of tangible merchandise would yield
over 100000 900.
II, in addition TO a considerably in
creased income tax, this should not
yield the amount of money necessary
for the conduct OF the war. the / per
cent. could be made ~ per cent
| without disorganization of business.
1t is exceedingly important that
businesses of similar kind shall be
taxed equally and equitably, in order
to prevent palpable injustice being
| done in taxing one business in bur-
densome way and another business
| lightly, thereby giving one competitor
| n strong advantage over another. This
, injustice Is inevitable when the tax
| is based upon such elements as CAPT
| talization, capital invested, excess prof
! its over pre- war periods, or other in
| definite elements. The basis OF CAPT
talization of various companies differs
SO widely the matter of capital in.
vested, good win employed. are so con-
ficting and confusing that to attempt
to base a universal tax on these prin'
cipes is bound to work out inequities
and inequalities and tend to democrat
ize and disrupt business. Some com
panies are overcapitalized and som'
are undercapitalized. and examples o.
unequal taxation between Companie.
of similar kind and purpose have un
doubtedly occurred to the minds o.
those who have given thought to thi!
matter. II tax on sales should bt
accepted, every particle of ineQuit,
and injustice would disappear. because
businesses of the same kind would b
taxed in the same way, and volume o.
sales alone would fix the amount o.
tax to be collected.
There is no basis OF taxation whici
would be so simple, SO definite and 81
easily ascertained. 1t seems TO mi
definiteness is a very important factor
in the situation. II a thing is in
definite, many people are going to tr.
TO evade it, or, at any rate, to constru'
the operation Of the tax to their owl
advantage. There can be no doub
about tax based on gross sales. II
the operation OF our business We hav,
bought out a number OF small bust
nesses. 1t is n rare thing when
small merchant can furnish any def
mite information in regard to assets
the capital employed in his business
his stock turnover, and an attempt t
get at his profits is largely guesswork
But there is one thing which he al
ways knows and on which he keep
careful records, and that is his gros
sales, and this is also easily verified
by bank deposits. Therefore, a tax Oh
sales would leave no possible eNcus
for doubt; business men could ascer
tain their taxes without the slightes
uncertainty and could conduct thei
business with full knowledge of TIL
amount due the Government From
the Governments standpoint, the ia
would be easily collectible, and tn
machinery for collection much les
complicated than that of others.
know it has been said that such
tax would ultimately become tax o.
|