The Birmingham age-herald., 1919-01-31
MERCHANTS OBJECT
 ID LUXURY TAX ON
 ECONOMIC GROUND
Method of Collecting Tax Great Imposition on Both the Merchant and
 Customer

Birmingham merchants are taking steps to show their disapproval of the proposal in the new revenue bill to enact the so- called luxury taxes. Already the local merchants have been in touch with their friends In Washington in the effort to have this tax section eliminated.
 In Birmingham the chief objection pointed to in the new bill is the method of levying the tax. Merchants claim that tax, and that in purchasing everyday articles it will require experts in the stores to figure the tax, write the proper records and see that their clerks collect it from the customer. One merchant was positive in his statement that the cost of collecting the tax in his establishment would be more than the tax would amount to for the government
 It is claimed that the tax after being eliminated in committee was restored on the floor of the Senate in spite of the fact that many of the members of the committee having the bill in charge had previously agreed to leave out the luxury taxes because the signing of the armis- tice made them no longer necessary retail dry goods and department stores has submitted to Congress carefully pre- pared briefs pointing out
 They are inexpedient, because: L The amount which will accrue to the govern ment on such taxes is comparatively neg ligible. 2 They will tend to promote the manufacture and sales of articles enumerated at prices below the specified limits thereby reducing taxable sales 5. Such taxes have been imposed by some of the nations with which the United States is allied and have proven to be unpopular in the highest degree with the consuming public, which against all ar gument has remained unconvinced of the necessity of their imposition.
 They are negotiable, because: 1. They impose tax on a limited class of con- sumers of the articles specified by req son of the arbitrary prices at which ar ticles become taxable, no tax being i'm posed or consumers or articles under the specified prices. 9 Such tax will cause serious disturbance and necessitate re- adjustment of industries devoted to pro- auction of higher grades of merchandise lat time when the consummation of peace will necesSitate the maximum oper- ation of every possible industry in order to provide employment for workers re- leased from war activities.
 Section 904, the luxury tax section, as sent to conference, provides for a tax of 10 per cent on the following articles, where the dealers sale price is in excess Of specified amount, said tax to be levied on and after May l, 1919: Carpets and rugs, except imported and American rugs made principally of wool in excess of 5 per square yard picture frames, in excess of $10; trunks, over $50; valises, traveilng bags. suitcases, travellers hat boxes and fitted toilet cases, over S25; purses, pocketbooks, shopping and hand bags. over T.50; portable lighting fix lures, including lamps and shades, over $2o; umbrellas parasols and sunshades, over $4; fans, over, $1: house or smoking coats or packets and bath or loungng robes, over s7.5O; mems waistcoats, sold separately from suits, over 90 each; wom- en's and misses that's, bonnets and hoods, over $l5 mems and boys hats over S5: men and boys caps over $2 each; mems, women's. misses and boys boots, shoes, pumps and slippers (except for crlpples), over $10; mems and boys neck ties and neckwear, over S2; mems and boys silk stockings or hose over S1 per pair; womens and misses silk stoclxings or hose. over s2; mems shirts, over &: mems, Womeli's, misses and boys pa- 1amas, nightgowns and underwear, over 5; kimonos, petticoats andF waists over s15. Among the objections given to this tax are those of J. Blach & Sons, who have addressed the following letter to Sena- tor Underwood:
 Dear MT. Underwood-As representa- tive merchants, we are applying to you m behalf of the mems wear business of this state to amend the proposed luxury tax bill,' which has just been, approved l by the House and Senate conference com mittee.
 ''We are of the opinion this bill was i originally framed in time of warfare to discourage, primarily, the production of finer merchandise in favor of more prac- | tical articles of necessity. In these times when it is necessary to employ la Dor at high wages there is no reason for such bill. The expense and waste | involved in collecting taxes in this man. ner do not Justify this method of taxa l tion.
 This tax is travesty on conserva- ton. The extra work and tremendous ! extra expense to the merchant, aside from the tax, to keep such necessary records make the tax impractical more- 1 over, average salespeople cannot be re- lied upon, in our opinion. to make ac- cIrate collection of the tax.
 We believe it will seriously reduce the manufacturing and retail sales of gooo and dependable quality of merchant disc throughout the United States and thereby cause unemployment of labor al I a time when the industries of the coun- try need to be kept at their utmost ca pacity.
 Tt is impossible to collect this tax fairly for the following reason: That this tax would be figured and collected iE almost every case by employees of re-
 tail establishments, who owing to the
 mrltitude of duties cannot be relied upon
 to make accurate collection of the taxes
 for the government on the innumerable
 articles which they are called upon to 1 handle.
 1 Will you use your best efforts 1T
 amending and in making more practica , this involved proposal?
 Awaiting your response. we are. witt
 respect. J. BEACH & SONS.
 Main Office"