Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-05-30
swEEPlNo REPEAL PLANS ADAM
ooNEp BECAUSE OF iMPERA-
TIVE NEED FOR REVENUES.
TAX ON SOFT DRINKS
WILL BE RETAINED
RepeaI viii Be Limited to Tax on
Hicher Priced Wearing Apparel and
Articles For Personal Use-Chanse
Planned in Methods Of Collecting
Soft Drink Revenues.

washington. May S0-On account Oh
the increasing prospect Of a dehcit Oh
s., OOO, 900 coo or more in government
revenue required to meet war expenses
in the next wear. republican members
of the house committee on ways ana
means decided today to halt the move
to repeal all the luxury taxes in the
war revenue act.
In accordance with this decision the
only taxes repealed will be those on
the higher priced wearing apparel ana
articles for personal use embraced IN
section 9Oi of the act, the bill to repeai
which is now pending in the mouse
with a favorable report from the ways
| and means committee. 1t is expected
20 be passed by both houses shortly.
Tax on Soft Drinks Remains.
The decision today means that tpc
taxes on soft drinks, ice cream. cos
metics. furs and other luXuries Will re-
main in force indefinitely. A large rev.
enue is expected from the tax on SOFT
drinks, particularly after the country
goes bone dry on July l.
| Reports, however, that the govern
ment is not receiving the full revenue
from the tax on soft drinks and ice
| cream have caused the committee 10
undertake to devise change in the
collection process. Two proposals are
under consideration. One is the impo-
sition of q stra :ght tax of II or ID per
cent on the aggregate soda fountain
vTyl,. to hn
enue stamps of the denominations Oh
the present taxes, which stamps
would be affixed to soda fountain
checks.
Cooley Urges Shifting Taxes.
REPRESENTATIVE Copley OF Illinois, d
member of the committee. is pressing
for early consideration of his plan u
abolish the federal taxes on business
and increase Commensurately the taxes
on the individual incomes OF business
men. The government, he points out
would receive the same amount OF rev
enue without hampering business ana
ipcrea sing the price of products to the
consumer.
81 note by the annual report OF the
United States Steel Corporation 1ol
1918 that the income and excess proli'
| tax amounted to almost $50 per ton or
| the finished product said Mr. Copiey
! 1T was necessary. We were in war
and we had to raise every dollar we
could rake and scrape.
Says Consumer Pays Tax
| This tax was not actually paid by
| the United States Steel Corporation
but it will actually be paid for many
wears to come by the one universe
| goat the ultimate consumer.
| every railroad that bought rails
paid nearly 25 per cent of the entire
cost for the government tax. They
will be compelled either to capitalize
that or write it off in a very shor'
space of time. If they capitalize 1t VII
| mean that the entire consuming public
will be compelled to pay an income or
this wind. which represents nothing
more nor less than government ta'
necessary at that time for a successful
prosecution of the war.
Urges Helping Industries.
ION the other hand if they write i
off within a comparatively short periot
it means very much higher operating
expense. which must be swallowed by