The Dawson news. (Dawson, Ga.) 1889-current, 1919-04-29
FIRST PAYMENT OF
new TAXES APRIL 80
LUXURY" TAXES BECOME EFF.
FECTIVE AFTER MAY 1ST.
SOFT DRINKS HIT HARD.

y
sold between Feb. 25, when the rev.
enue act went into effect, and March
1st.
Officials of the internal revenue
bureau are hopeful that this pay
ment will be as proportionately large
as the first payment of income and
excess profits taxes on March Is,
which exceeded ,0OO.OOO,OOO.
Among the goods for which taxes
must be paid on April 80 are motor
trucks, automobiles, musical instru-
ments, candy and chewing gum, sport
ing goods, cameras, firearms and
hunting weapons, electric fans, Their
mos bottles, smokers articles, slot
machines, liveries, hunting and riding
habits, articles made for fur, pleasure
yachts and motor boats, toilet soaps,
sculpture, paintings and works,of art
Any sales of these goods made by
real dealers between Feb. 25 and
March l must be reported to the in
ternal revenue collectors of their re-
spective districts and the taxes paid
on them April go The returns are
to be made monthly thereafter. That
is, the tax for the goods sold during
March must be paid on May 81. Thus
the dealers are given a month in
which to tabulate their reports.
Is Not Luxury Tax.
These are not the so-called "lux-
ury taxes" which cover wearing ap-
parel, etc. and do not go into eff
feet until May 1. The tax on these
goods may be added to the selling
price of the article, but in the case
of the luxury taxes the purchaser
must be informed how much tax he
is paying.
"These excise taxes" said Daniel
C. Roper, commissioner of internal
revenue, Uncle Sans tax-gatherer
extraordinary, "are related more in
timately to the taxpayer than the in
come tax, because they come more
frequently.
Wars End Cuts Tax.
eff the war had lasted six months
longer, | would now be trying to get
20 per cent more in taxes out of the
American people. We started out be-
fore the armistice was signed to
write revenue bill that would pro-
duce eight billion dollars. We wound |
up by passing one that will produce |
six billions
ct is estimated that four of these
six billions will come from the in
comes of individuals and corpora
tons; the rest from a varied assert
ment of items like the excise and !
luxury taxes.
"The new law taxes some articles !
sold by retail dealers, in which it |
differs from the 1917 law, which tax
ed only the producer. The producer !
passed the tax on the purchaser by
increasing his prices. Under the new
law, passing the excise taxes on to
the purchaser in this way is strictly a
private transaction. The governments |
only interest is to see that the tax is
collected, but it will also see that the
dealer does not misrepresent the
tax and sell his goods for a price |.
higher than his original selling price
plus the tax
81 ask the patience of the public |
in dealing with any delays or errors
that the revenue bureau may make in
collecting the taxes. 1t should be
borne in mind that when | took |.
charge of the bureau 10 months ago
it had only 5000 employees. Now it
has 1000, and these new employees
have to be trained as we go along"
Ruling by Blalock.
A. o. Blalock, collector of internal |
revenue for Georgia, has made an
important ruling relative to the tax
on soft drinks.
The act, which becomes effective
May /, stipulates that one cent must
be collected by the dispenser as q
tax on each ten cents, or fraction !
thereof, in any sale of soft drinks.
Collector Blalock holds that a
sale" applies to the total amount !
collected in any single transaction.
For instance, if one purchaser /
Greats" four friends to fve-cent |
drinks the tax paid should be three
cents-one cent for each dime and |
the fraction.
Other interpretations of the law |
have advanced the view that in the |
instance cited should be considered |
as five separate sales, requiring the !
payment of one cent on each drink, |
or a five-cent tax in all.
No definite regulations as to the
application of the law have been re,
ceived by the revenue department !
and unless instructions to the con.
trary are issued by Commissioner of
Internal Revenue Roper at Washing
ton the tax will be collected in ac-
cordance with Mr.. Blalock's ruling.
The effect of his Interpretation
would be to decidedly simplify the
task devolving upon soda fount oper-
ators in keeping records of all drinks
sold and which must be subject to
inspection by government agents at
any time.
TO RETURN TELEGRAPH