Pine Bluff daily graphic., 1918-04-05
TAXING THE SOFT
 DRINK INDUSTRY


 DRINK INDUSTRY
 We beg to take issue with the ed- itorial appearing in the Daily Graphic of April 3. under the subject, "rax- ing Soda,' and reading as follows:
 ".ihe suggestion has been made that in view Of the falling off of revenue in many parts of the country on ac- count of prohibition, that soft drinks be tXed.
 "lt is true that our soft drinks es- cape all burdens of taNation-and the business has grown wonderfully in re- cent years. It would appear on the !ssurface, therefore, that her is fruit full field for some more taxation.
 "We hope however, that nothing of the kind will ever be attempted. It would certainly hurt the morale of our soda fountain fans, who already are paying etn cents for drinks that form erly cost five.'
 1 The above editorial states. "It is /, true that our soft drinks escape all burdens of taxation," let us see if It is true Quoting from the War Reven- JIG Act entitled, "An Act tc Provide revenue to defray war expenses and for other purposes"
 Sec. 3l3. That there shall be levied assessed, collected, and paid for ] (a) Upon all prepared syrups OF extracts (intended for use in the man. ufacture or production of beverages, commonly known as soft drinks by soda fountains, bottling establishments and other similar places) sold by the manufacturer, producer, or importer thereof, is so sold for not mere than $12O per gallon, tax of cents per gallon; if so sold for more than S1.30 and not more than $2.00 per gallon a tax of 8 cents per gallon; if so sold for more than S2 and not more than $500 per gallon, a tax of 10 cents per gallon; if so sold for more than $$33 and net more than S4 per gallon, a tax of 13 cents per gallon; and II so sold for more than $4 per gallon, d taN of 20 cents per gallon; and (b) Upon all unfermented grape juice, soft drinks or artificial waters (not carbonated), and farmented liq- ors containing less than cne-half per centum of alchohol, sold by the manu- facturer, producer, or importer there of, in bottles or other closed con- tainers, and upon all ginger ale, root beer, sarsaparilla, pop, and other car bonated waters or beverages, manu- factured and sold by the manufactur- CT, producer or importer of the car bonic acid gas used in carbonating the same, tax of 1 cen per gallon. Sec. 3f5. That upon all carbonic ac- i'd gas in drums or other containers f; bn 1fof of ,.E, : or production of carbonated water or CT, producer, or importer thereof, there : shall be levied, assessed, collected, and paid tax of 5 cents per pound. Such tax shall be paid by the purchaser to the vendor thereof and shall be collect I ed, returned, and paid to the United States by such vendor in the same manner as provided in Section five 3 hundred ard three."
 In order that the application of this
 tax on our business may be under 2 stocd we use in our Pine Bluff plant l more than one hundred gallons of Coca Cola per day on which the tax is
 five cents per gallon amounting to more than five dollars per day tax. Tn addition to these two principal items
 we are paying from ten to twenty
 cents per gallon tax on all other ex-
 tracts and syrups we use in the man.
 ufacture of soda water.
 We can show anyone who wishes to
 vestigate that under the section of
 war revenue tax quoted above, that we
 ara paying at our Pine Bluff plant alone between ten and fifteen dollars
 per day tax that no other business '. than the soft drink business is paying l and in addition We are paying our To- cal taxes, taxes on freight and ex- <. press shipments. Tax on our travel : ing mans railroad fare, etc., which
 are the only taxes required of the ma l jcrity of other industries. And in ad- |, dition to this the Government has re- i. duced our output to eighty per cent t of what we did last year by reducing 5 our supply of sugar, and in addition - to this we are required to pay the usual income and excess profit taxes 5 if we are successful in making any l profits.
 g DCes this look like the soda" ol F soft drink business is escaping the g burden of taxation? Verify no, wc sub
 init that the soft drink business is t paying more tax compared with its investment and income than any other U business> in existence.
 L. Y. BELLINGRATH,
 President, Coca Cola Bottline