The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-08-22
SEEKS TO ELIMINATE
EXCESS PROFITS TAX
National Association OF Credit Men
Appeals for Immediate
Legislation.


that the present excess profits taxes
are partly responsible for the high
cost of living, the National Associa-I
tion of Credit Men has mailed to Pres
ident Wilson, the cabinet members
and to every member of congress a
statement asking for immediate legis-
lation which will do away with the
consumption taxes on the necessities
OF life. says a story in the New York
Times. The statement, signed by r.
G. Elliott as chairman of the special
war tax advisory committee. has the
backing Of the 29,500 members of the
National Association of Credit Men.
comprising manufacturers, whole
salers, jobbers and financial institu-
tions in the United States. The ap-
peal for immediate action by congress
declares that there can be no ques-
tion that tax assessed against the
business entity has in many instances
the effect of causing high prices. with
the resultant higher labor expenses
based on increased cost OF living. The
statement says, in part:
The present year is without ques-
tion the most critical period of the
nations industrial history. The period
OF high prices and war wages has
done much to destroy in the public
mind all sense of values and has op-
ened the way for the INSCRIPTIONS to
profiteer in the most fragrant man
ner, and at time when all commod-
ity prices should be on the downward
trend, that all living costs might be
stabilized on a nearer normal basis
discouraginS the process of counting
in higher numbers with the resultant
hardships to many classes Of citizens
whose incomes are more or less fixed
on the dollar basis, and have not and
cannot be readily adjusted to meet
the declining purchasing power OF
the medium of exchange"
The excess profits tax is not a tax
on organized business nor on the en-
joyable income Of the individual able
to bear the burden, but a consumption
tax pure and simple levied on all con-
sumers not in relation to their ability
to pay, but in relation to the necessi-
ties of their existence.
"It is to be observed that the pub
lie is fast coming to realize that the
tax is being collected in the form OF
increased prices and that in many
cases IL is greater than would be the
case were it directly levied con-
sumption tax on the necessities OF life.
1T is therefore the recommends
tion of the National Association OF
Credit Men that the excess profits tax
be eliminated; that the necessary rev.
enue be drawn from tax on the
enjoyable income OF the individual,
and that this be done for the taxable
year 1919
1T has been the avowed intention
OF congress to have the burden of the
tax bear most heavily on those with
large incomes, but the excess profits
tax bears heavily on hundreds of thou
are stockholders in small way in
the great corporations of the country
This association recommended as
a wartime measure a war profits tax. ;
The war being over, there are now no
war profits to tax; therefore there
should be no war profits tax. This
recommendation was made at a time
when the world was at war and when
profits were being made out of or by
reason OF the war, when tremendous
expenditures were in prospect and
when congress faced the necessity OF
raising the largest amount OF revenue
in history
The elimination OF the excess
profits tax on corporations will re-
lease that amount OF money for dis
tribution In dividends, on which the
surtaxes Will be paid by the individual
stockholders, thus increasing the rev.
enue to the government from personal
income taxes. Thus this revenue will
be assessed on the basis OF income
and ability to pay. There is ample
time for this as the present law as
sessing the tax was not passed until
late in February and was retroactive
to the extent of IA months"
In addition to the statement copies
of the resolution were sent to practi-
cally every national official In Wash