New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-12
Credit Men Ask
Instal1nent Plan
For Paying Taxes
Congress Told Strain ON
Business Would Be Eased
by Suggestion

The National Association of Credit
Men has submitted to Congress through
special committee recommendations
suggesting changes in the present in
come and excess profits tax laws. the
operation of which the association de-
scribes as "inequitable and in many
cases imposing unwarranted hardships,
while in others providing correspond
ingly unwarranted exemptions" Rep
resented in the association are 1856
leading manufacturers, jobbers and
financial institutions of the United
States.
The recommendations provide that
the tax hereafter be distributed in
three payments, in order to prevent an
unnecessary drain upon the resources
of the country, and that these tax-pay-
ing periods, when one-third of the tax
shall be paid, shall be June Is, July
Is and August Is of each year, and
that anticipation certificates of indebt-
cdness be available throughout tho
year.
1t is urged that all corporations. CO.
partnerships, associations and individ-
uals engaged in business or trade be
treated identically as to rates and ex-
or business" shall not include profess
slons or personal service.
Tax for $500 Incomes
A fat individual income tax, not to
exceed S., is urged against all indi-
vlduals whose income equals or ex-
ceeds $500, although the personal ex-
emption would not be altered. The fiat
tax would be in addition to taxes now
ffors To h. 80 4 =
be collected and paid at the source,
wherever possible.
1t further is suggested that incomes
under 100000 may be fairly expected
to bear relatively higher rate of sur
tax than at present, and that the en-
tire schedule might, to advantage, be
materially increased. 1t is suggested
that the normal rate be increased to
not to exceed 8 per cent.
An important suggestion is that con-
trlbutions by corporations to strictly
war relief organizations be an allow
able deduction from gross income.
sui another recommendation is that
so-called unearned incomes be taxed on
the same basis as earned incomes.
"A further provision is that unds-
trlbuted earnings of a copartne rship
be treated the same as undistributed
earnings of corporation, including a
10 per cent tax on undistributed earn
lngs not necessary for the reasonable
requirements of the business.
Suggests New Exemptions
The National Association of Credit
Men would exempt from taxation, cor
porate, copartnership and association
earnings in the hands of individuals to
the extent of the normal tax paid by
the corporation, copartnership or asso-
citation, and would make income taxes
assessed an allowable deduction from
gross income for the year in which
they accrue.
The committees report was drawn
following an exhaustive study of the
entire question of national revenue
legislation. Upon the committee are {:
r. &. Elliott, chairman, of the jacques
Manufacturing Company, Chicago;
Charles D. Joyce, the A. Colburn Com
pany, Philadelphia; E. H. Jaynes, of
the Clcveland-Cliffs Iron Company,
Cleveland; w. M Kennard, of Graup-
ner. Love d. Lamprecht New York; S.
J: Whitlock, former president of the
National Association Of Credit Men. of
Belding Brothers & Co., Chicago, and
q. G. Watson, counsel for the commit
tee, of Watson, Stouffer, Davis & Gear
hart, Columbus.