New-York tribune., 1919-05-14
Petty Graft in
Tax on SOdas.
Officials Say
New Law Is Denounced as
an Invitation to Rob
Both the Government
and the Consu m e r
New York Tribune
W0.Shiu0tOn B,tren1l

NeW York Tribune
Washington Bureau
WASHINGTON, May 13.-OficeGs of
the Internal Revenue Bureau have
come to the following conclusions in
regard to the so-called soft drinks ex-
else tax of the new revenue law:
That it tempts about 100000 per-
sons to become embezzlers and law
evaders.
That it is making 1OO,0O0,000 per-
sons disgusted with the whole FEEDER
al internal revenue taxation system.
That it is so vague and intrinsi-
cally contradictory that any attempt
to explain it reads like the lines of
comic opera.
That it is being made the vehicle
of profiteering and extortion, indi-
vidually petty, but collectively enor-
nous.
The law makes every soda water dis
penser in the country collector of
internal revenue, but it gives him no
salary, requires no oath of office and
SaoStS lio Conu. IL CieCh edCu VI Nuu
dreds of thousands of dealers, NEST of
them petty, on the pennies tncy daily
collect from the people is impossible.
The general custom of the dealers
is to provide some sort of receptacle
into which they drop the tax pennies.
There is no way to tell how often the
clerk forgets or purposely omits to
drop in the pennies. There IS no
way to tell whether the clerk. or even
the proprietor himself, appropriates a
considerable part of these coins from
time to time What is left in the
bottle, can or box belongs to Uncle
Sam. Whatever is taken out seems
takers. Clerks and proprietors know
there is no check on them. This
temptation, officers say, leads to crime
with no chance of punishment
The public is becoming aware that
under pretence of the tax, soft drinks
have been marked up in price, and that
under pretence or actuality of misun-
derstanding the law great many pen.
nies are being collected that the deal.
ers have no right to. There is no con
sumption tax on grape juice, cider
ginger, ale, and such drinks as are
carried in bottles or other containers
but reports from all parts of the coun
try indicate that dealers everywhere
are exacting such a tax. Thus the
public, in addition to having to pay
petty tax that it detests, feels that il
is being mulcted.
Inconsistencies of Measure
The Inconsistencies Of the law are
easy to see. If you live on the fifteenth
story of an apartment hotel, $50 fee
away from the soda fountain in the
building, you pay tax On the ice
cream you buy there If you live
across the street 100 feet away, 20,
don't pay. This is the way the "prox
unity" qualification Of the law is in
terpreted. If you buy dish of ict
cream at soda fountain you are
taxed; If you buy it at a restaurant
with something else you aren't taxed
If you buy it in a cone you are taxed
if you buy it in paper bag you are
not taxed.
Prices, it is charged, were raiset
before the law went into effect. so a.
to take advantage Of an enforced ia,
to collect larger margin. MliA, cream
and sugar are cheaper, but 2-cen
war tax is accompanied by 5-cen
increase in the price of sundaes il
many places. "War tax" is the vagu,
explanation that satisfies most patrons
though they themselves are paying j
In addition to the enhanced price o
the article.
Revenue officials find the semi
luxury tax on articles Of personal wea
and use about as annoying and Difficult
to administer. They are "for" the cam
paign for the repeal Of both forms O
taxation.