El Paso herald. (El Paso, Tex.) 1901-1931, 1919-04-25
LIKE ICE CREAM SODA? THEN PAY
GOVERNMENT A TAX ONEiCHGLAS5
Luxury Tax Is Not Luxury Tax, But a Tax Upon
Many Necessities as Well Fl Paso Merchants As
sert-Buy Necktie Over 81 in value and You Pay
The TaX-Public Must Pay It; Dealers Can't.

'sTHE name luxury tax IS mislead-
1 ing" said Maurice Schwartz. in a
discussion Of the new revenue tax TO
carry on the postwar federal program.
at a meeting OF the retail merchants
OF FL Paso in the chamber Of COM
merce Thursday evening.
TT is misleading, in that many Of
the articles listed are necessities and.
il in the purchase, the tax is men
toned as a luxury tax instead OF a
war tax or a federal tax. the effect
upon the purchaser is that he might,
perhaps, have contented himself with
something else. For this reason, the
merchants have agreed TO not use the
word, luxury ia referring TO the tax
but rather the words, war tax or
federal tax"
While the purpose OF the meeting
OF the retail merchants was 20 dis
cuss in a general way the federal tax,
which becomes effective on Nay 4.
the application and handling Of the
tax became the chief factors Of the
evening. Between Mr.. Schwartz and
manager Roberts, the tax was ap-
preached from many angles and the
consensus Of opinion was that the tax
plete and dextrous riddles ever rail-
r0aded through congress
Must Keep Tax Account
Mr.. Schwartz brought out several
points, which the merchants made
note Of one was that the tax is a
something TO be borne by the con-
sumer, and every purchase Of articles
listed in excess Of the amount IN
taxable, must be shown as an entry
on the compauy's record and on the
sale slip. in other words, II a silk
shirt sells for S. and the tax Is %
cents. the merchant cannot absorb the
tax by naming a price Of $500. but
must state that IS is for the shirt and
20 cents for the tax, otherwise the
tax would be payable on $500 instead
OF IS.
If, on the other hand. Mr.. Schwartz
stated. the article upon which a tax is
collected is returned, by keeping tine
proper records, the government all
lows for a credit Of the tax The es-
sential point TO be remembered. how
ever. is that the tax may not be alb
sorbed into the sale
How to Do It.
II. P. HUFF, speaking for the White
House. explained that the White
House would have issued a schedule
OF prices upon taxable articles and the
amount of the tax, posting IN the va
rious departments so that the public
might be Informed, and that the audit
ing of the taxes for the government
would be done I'm the bookkeeping de-
partment each day upon the conclus-
ion Of the days work. shelby Slips
viii be used for this purpose a Plaza
somewhat similar, save that a federal
ledger account would be carried. was
the program Of the Popular store
Uniformity in handling the tax was
suggested by manager Roberts. though
z o. 81 .
work out its own program. The point
was raised that there was no penaliz7-
ton OF merchants on sugar and flour
certificates and that the government
might be camoufiaginE again. but the
view was by no means sustained. the
statement being made that the food
administration appealed 90 voluntary
action largely: while the federal tax
has all the power Of the government
behind IT, and, until repealed. must be.
observed.
Buyers Protest.
Mr.. Schwartz stated that iu the
stores Of the east and central west.
ballot boxes are kept IN the shops. in
which the public may cast its votes
OF approval or disanprOval against the
tax and that already petitions pro-
testing against the tax have been
signed by millions to be forwarded 90
Washington He suggested that the
buying public Of Ei Paso register a
similar Indignation.
Manager Roberts stated that az the
recent meeting OF the Texas chamber
Of commerce at waco, a resolution
was passed urEiug the repeal Of the
consumers tax 1s an unjust law. lie
also stated that the general feeliuE
over the country is hostile 20 the law
and that there IS an assurance Of
by the next congress
Because Of the wide range Of arti-
cles covered. 70 was the decision oil
the meeting that. the chamber Of COM
merce issue bu letins covering each
separate trade and forward them to
the trade for guidance. These lists
viii be compiled and sent out. all
though the banking houses have issued
very complete general pamphlets on