Evening journal., 1919-04-10
SELLING PRICES
FIX LUXURY TAX
Pretext to Misrepresent
Cost to Consumer to be
Fought, Says Roper
PUNISHMENT CLAUSE
In THE MEASURE

WASHINGTON. April iO.-Alhough
ne government holds that the shifting
OF the excise and luxury tax burden is
private transaction between manufac-
turers or dealers and the consumer, the
government does not propose the taxes
shall be used as a preteXt 10 misrepre-
sent the prices Of articles.
This was made plain by Daniel C.
Roper, commissioner Of internal reve-
nue., last night in outlining the working
OF the new revenue law 20 members Of
the Merchants and Manufacturers As
ISOLATION Of Washington. In explaining
that dealers will be required 10 collect
these taxes separately from the pur-
chaser Of the article, Mr.. Roper said:
"With respect 10 such shifting Of the
tax burden by the manufacturer from
himself to the consumer, the bureau
has held that the passing on TO the
purchaser OF the excise tax on sales Is
"a private transaction between the man
ufacturer and the purchaser. The in
terest the government has is that the
amount Of tax shall be collected and
that the price Of the article shall not
be misrepresented TO the purchaser 50
as TO make the purchaser pay q larger
amount then the actual price plus the
amount OF the tax, under the guise
that the increase is due TO the tax.
Penal provisions are contained in sec
tion 1919 Of the revenue act OF 1918 Of
such Misrepresentation
"The so-called luxury taxes become
effective May 4. This is a tax Of 10
per cent. on the amount paid for GER
tain articles in excess OF certain fixed
prices. The luxury taxes will be collect
ed by the government monthly. Lux
ury taxes cannot be included in the sell
ing price Of goods. Under the provi-
sions OF section 9Oi Of the revenue act
Of 1913 such articles as umbrellas, wo-
mems and mems hats, boots and shoes,
neckties, silk socks and stockings and
other items are taxable when sold in
excess Of a specified total retail price
but upon the amount in excess OF the
specific price mentioned in the law.
Retailers must keep record OF each sale
Of taxable articles so that their monthly
reports, which will show total sales
and total taxes under each classilca-
tlon, can be verified at the place OF
business by inspection.
The excise tax, effective February
%, applies TO a variety Of articles, from
automobile trucks TO soap powders.
Subject 10 this tax are musical instru-
ments, sporting goods, chewing gum,
cameras. Photographic films and plates,
candy. firearms, dirk knives, metallic
knuckles. thermos bottles. automatic
vending and weighing machines. cigars
and cigarette holders and pipes. The
tax ranges al the way from 3 per cent.
OF the manufacturers selling price OF
soap TO 100 per cent, on brass knuckles.
The former article, we all agree, is
necessity, but the latter in these days
Of prospective peace may be regarded
as a luxury.
Excise taxes are based upon the
manufacturers selling price, unless he
does both a wholesale and retail busi-
ness, in which case they are based upon
the wholesale price. The tax attaches
when the manufacturer sells the article
and title passes. Each manufacturer is
required TO make a monthly return OF
the tax collected during the preceding
month and 20 pay the tax at the time
OF making the return. The first return I
will be for the period Of February 80, /
1919, TO March 81. 1919. and must be /
made on or before April 30 1919.
"The revenue act specifically provides /
that there shall be no tax on articles /
sold for export and in due course so !
exported.
"The tax on soft drinks sold by the /
producer or importer also