The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-07-15
BUSINESS MEN MAY
APPROVE HIGH TAX
TO HELP WIN WAR
Eleven Items That May
Affect the Revenue
Suggested.
SUPPORT Is ASKED
Eighty Per Cent on Ex-
cess Profits Proposed.
Billions of Dollars
Are Needed.
SUPPORT Is ASKED

Washington, July 1.-THE chan
Der Of commerce of the United State
the most representative institution
American capital, has asked its men
bers to endorse program OF Wa
taxation embracing an excess prof
tax of so per cent, taxes on tea. coffe
and beer. jewelry, musical il
struments and gasoline.
The program represents the repo
OF the special committee on financir
the war Members Of the committt
are: John V FarweH, Chicago; II
ward A. Fine, Boston, p. w, Goethe
Kansas City; John II. Gray, Mimi
apolis; Stoddard Jess, Los Angelo
Hugh Mex Landon. Indianapoli
Robert +. Maddox. Atlanta; John
Scott. Houston; Oliver NJ. w. Spragu
Cambridge, Mass; Jesse Isidor Stau
New York; j. X. Orr, Atlanta, ar
Edmund D. Hubert and j. Lawren'
Laughlin, Chicago.
The eleven specific recommend
tions of the committee are;
That exemption allowed for
war taxes are imposed should be
adequate for the safe conduct of
business enterprises and that
power to make adjustments that
will prevent iniquities should be
given to the administrative au-
thority under the tax law.
That liberal provisions for
amortization OF plants used on
war work should be made. with
opportunity for subsequent read
lustment to correct errors.
49,. That~there should be a limited
number of regional board of re-
view. appointed by the admins
trative authority and making
recommendations upon appeals
from preliminary assessments.
That there should be equaliza-
ton of federal taxes.
That IN computing taxable in
come corporations should be al
lowed to make two deductions
0nterest and charitable giftsl.
which they are denied now.
On condition. the proper ex-
emptions and opportunities for
adjustment are allowed. that a
war profits tax should be i'm
posed at a high rate and should
be levied when it would exceed
the excess profits tax.
That upon the present general
basis. but with inequalities re-
moved, the excess profits tax
should be increased.
That rates of income taxes
should be increased and unearned
incomes should be taxed at least
as much as earned.
Heavy taxes on a few articles
of widespread consumption.
Heavy taxes on selected list
of luxuries.
Heavy taxes on selected list
of war extravagances.
The report urges that at least IS
600. 100000 be raised by taxation
the coming year.
1T is important" says the commi
tees report. lin considering presel
taxation to remember that the heavi,
the taxes which are now imposed, II
more rapidly can taxation be decrea
ed after the war. and the more a,
vantageous the position of our coui
try will be in that period of keen II
ternational commercial competitio
when countries then bearing hea,
burdens of taxation will be CORE
pondingly handicapped. At presen
however favorably the ratio of o,
taxes to our expenditures compare
with the ration of other countries.
such countries as England the rat,
of tax are very considerably high'
than our rates"
After declaring that the present e,
cess profits tax is apparently efficiel
in handling four fifths of the nation
business concerns. thus permittir
profiteering in one-fifth of the bus
ness world, the report says:
For this reason. 1t is proposed
enact war profits tax with exemptic
of a fair return as carried on capt.
or turnover OF sufficient spread, as
fair and equitable basis, but with
very high percentage of the exec
turned over 10 the Government
taxes. This would not be addition
to the existing excess profits tax. b.
In each case one or the other wou
apply accordingly as the result
taxes would be greater. We sugge
the desirability of maintaining Il
general basis OF the present exec
profits tax. but with increased rate
perhaps as high as so per cent, Ii
stead OF the present so per cent.
For the purpose of enforcing r
ductfon IN unesseutfaf consumptie
and economy, whlch Is by all studen
of war finance deemed Of vital impor
ance, taxes on certain articles of gel
eral consumption and taxes on V,
riety of articles of luxury are pr
posed. There is a three-fold pu
pose in these taxes; the first obvio,
purpose is to secure revenue; the Sc
ond Is that taxes will result in lie
waste by inducing a more economic
use Of commodities thus taxed ar
result in greater margin of earl
ings over expenditure. which savin,
can be invested In liberty bonds: II
third purpose Is to reduce demand (,
articles thus taxed no that material
equipment and labor. which otherwi,
would be employed to produce the,
commodities naturally will turn I,
ward more essential employment"
The suggested consumption taxes Ii
clude tea, Soc. = pound; co6cN. &C.
pound; tobacco. so. : pound: bee
SO harrel - moderate tax I
~ - Il ss1o ~