The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-07-11
TAX ON LUxuR|ES.
TREASURY'S Plan
FOR WvR REAENUE
Propose to Raise $8.000,-
100000 of U. S. War Ex-
penses by Taxation.


WASHINGTON. July 11.-Members
of the house ways and means COM
mittee today studied with interest
the list OF luxury taxations suggested
by the treasury department. but oppo-
s!tion was apparent to many. OF the
proposals, which some committeeman
regarded as impractical. The commit
tee will take up the list item by item
when 1t begins framing the new war
revenue bill. The first protest against
the treasury's suggestions came today
during the hearing Of representatives
of the wholesale and retail 1ewelry
trade. Myer Rothchild and Robert B.
Steele. both OF New York. declared the
proposed 80 per cent. retail tax on
'jewelry was ruinous and would force
so many concerns out Of business that
the government would not derive near
~ % much revenue from this source
as Il would under the 10 per cent tax.
william H. p. Hill. Of Detroit, Mich.
who appeared before the committee to-
day 70 represent the patent medicine
industry. proposed the Canadian plan
Of aflixing a government tax stamp on
patent medicines the amount OF the
TAX to be added to the selling price.
Holds the Amount Too High.
While Mr.. Hill was on the stand,
Representative Fordney OF Michigan,
ranking Republican member OF the
committee, said the governments &C
tual war expenses this year, after de-
Quoting $4,000, 100000 loaned to the
allies, would be $4,000, 100000. The
IS. 900. 100000 which It 10 proposed to
raise by taxation, he said. represented
20 per cent. Of the total actual expense
and added that he did not think that
amount should be raised by taxation.
Members OF the committee indicated
that the list would form the basis Tor
consumption taxes in their draft of the
bill though some Of the proposals
would be changed and others oisre
garded.
Besides doubling present taxes on
liquors and tobacco. quadrupling SOFT
drink levies and making general IN
creases In other existing rates. the
treasury suggestions include taxes OF
80 per cent. in retail prices OF 5ewelry,
watches and clocks except those sold
TO army and navy men; IL percent. on
automobiles, bicycles, musical tnstru-
ments, ETC.; 10 cents on gallon on gas !
oline to be paid by the wholesaler; 10 !
per cent. on hotel bills for rooms over
$3.50 q day or American plan over |
s.; 10 percent on all cafe and restau.
rant bills and taxes OF unstated |
amounts on mems suits selling for
more than $50: women's suits over
$40; and coats over $50; mems hats
over 81, shirts ever 50, pajamas over
81. hosiery over 81 cents, shoes over
IS; gloves over 81. underwear over
So, all ueckwear and canes. women's
dresses over $25, skirts over SIS, hats
over SO, shoes over So, lingerie over
IS, corsets over IS, and all furs. fans,
ETC.; children's clothing including suits
over SIS, purses. toilet articles, ETC.,
over 81.
Picture Theaters Included.
In addition to all these taxes, which
would be levied directly upon the con-
sumre, the list proposes doubling the
present motion picture admission tax
and imposing tax Of per cent. on
moving picture theater rentals, with
the present film tax eliminated.
A 10 per cent tax on wire leases"
intended to apply to telegraphs. tele-
phones and other wires whose use Is
leased, Is another Of the treasury pro-
pcsals.
The retail tax principle Is new in the |
United States tax law. although 1t has
been levied In England, France and
Germany The treasury suggested
that 10 per cent. as basis for this
plan would be too low and that any !
one wanting the retail goods would |
pay as high as 20 percent.
The treasury proposed a license tax
Of $40 a year on every soda fountain.
The suggested tax on domestic serv-
ants would allow an exemption OF one
female servant. Others would be
taxed as follows: First servant, rs
per cent. Of wages paid second SER
want, so per cent; third. IS per cent.
and on more than three servants (not
counting the one female servant), 100
per cent. OF wage paid in each case.