Evening star., 1918-07-31

|NFRAM|NG TAXES
Ways and Means Committee
Feels Big Start Is Made in
Revenue Effort.

The luxury tax" suggestion of the
Treasury Department Is being con-
sidered by the ways and means COM
mittee today. while certain informa-
tion and statistics regarding the to-
bacco trade are being prepared by
the Treasury Department.
Increase from about to 10 per
cent in the tax on gross sales by
.anufacturers. importers and pro-
ducers Of passenger automobiles,
piano players. graphophones. sporting
goods, cosmetics. patent medicines.
cameras and similar goods has been
tentatively agreed upon.
1t is figured that there will be an
immense increase in revenue from
this source. AS other commodities in
daily use are to be added to this list,
the committee feels that big start
has been made toward raising the
necessary Ss.000.00o.O00.
Half Tax for Trucks.
Motor trucks will be taxed only
half the increased rate, on the ground
that they are for business purposes
aid not in the same class with pas
ssnger automobiles.
There was some discussion by the
committee yesterday Of the tobacco
tax schedule The Treasury Depart
ment has recommended doubling the
present rates on tobacco. The COM
mittee wants more revenue than this
would yield, and will decide the in
grasses later. Data laid before the
committee showed that consumption
of cigars in this country is decreas-
ing, while cigarette consumption is
mounting rapidly.
ment last night explanatory OF the
work OF the committee:
The committee has had under con-
sideration today the excise taxes,
2uch as automobiles. piano players,
Igraphophones, sporting goods. cos
metics, proprietary medicines, came
ras. ETC., and has tentatively decided
gross sales of the manufacturer, pro-
ducer or importer, in lieu of the
present rates. A distinction is made
between motor trucks and other
classes of automobiles. In the case
of motor trucks tax of only per
cent was agreed to be levied.
Taxes on Theaters.
TT also had under consideration a
moving picture shows, etc. The COM
mittee favored doubling the tax on
admissions and club dues, and also
to impose one-cent tax on all ad-
missions where the maximum charge
does not exceed seven cents. Under
existing law all moving picture
shows, theaters and other amuse-
ments whose maximum charge does
not exceed 5 cents are exempt from
the tax.
The committee proposes tomorrow
TO take up the luxury tax sugges-
tinnQ nf the Tre2S Denarfnant
The tobacco tax schedule was post
poned awaiting receipt Of some data
and statistics from the Treasury De-
partment which the committee has
asked for"
The committee action. 1t was said,
does not commit the committee to
general gross sales or consumption
tax, although that may be resorted
to at the last moment if the revenue
yield from all other sources is not
sufficient. 1t has been estimated that
"A gross sales tax on all articles and
in transactions affecting all articlts
would produce upward of S2.000.o0o,-
900 II only a 2 per cent rate was
adopted.
A war profits superimposed tax has
upon by the committee, but 1t may be
considered this week.
Cut Treasury Suggestions.
The committee cut the Treasury
suggestions in half, so far as rates
are concerned, on most of the ar
ticles affected by yesterdays tenta-
tive agreement on a 10 per cent tax
on original sales of articles included
in the existing war excise tax class.
Under the present law the tax on
automobiles. trucks, piano players,
graphophones. Photographs, talking
machines and records, sporting goods
and cameras, sold by the manufac-
turer or producer or importer
is per cent of sale price; on
perfume, cosmetics, proprietary med
icines, toilet soaps and waters hair
dyes and toothpastes and chewing
gum. 2 per cent; club dues, 10 per
cent, and admissions to amusements
cent per 10 cents or less paid
and in case of permanent or leased
use of opera house or other amuse-
ment seats or boxes, 10 per cent Of
sale price.