Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-23
TAXATION
SYSTEM ASSA|LED
Responsible for Continued High
Prices, Speakers Tell Cotton
Manufacturers
NEW SYSTEM ADVOCATED
BY the Associated Pres.

Maplewood, N. H.. Sept. 23.-Tht
present system Of federal taxation wal
declared to have created "an intolerabl,
situation and to be responsible for tn,
continued high price of many articles
by speakers at the opening session o.
the semiannual meeting of the Nationa
Association Of Cotton Manufacturers
Suggested substitutes included an EN-
ployers' privilege tax, outlined BY
Theodore II. Price, editor Of Commerc,
and Finance, of New York; and a gros,
sale tax, explained by William e. Corn.
well, Of New York.
The present method of taxation 1,
wastefully destructive" said Mr.. Corn
well, "but it is only during the last
year or SO that the public has become
alive to the fact.
1.-Two important sources of the coun
try's progress are being dried up b,
operation of the excess profits tax ant
heavy surtaxes on incomes" he con
tinued. These sources were surpluI
capital and intelligent enterprise. Higl
taxes are driving people with large in
comes to invest as much as possible II
tax exempt securities instead of fur.
nishing capital for new business ant
general commercial and financial devel
opment. Extra profits in business ar,
being appropriated by the government
instead of being used to strengthen bus
mess concerns and to provide agains
losses in lean periods which are bount
to come.
'The requirements of good system. ,
Mr.. Cornwell said, "were that II b,
fair to all that the burden be univer
sally distributed, and that the tax b,
simple. instead of being complicated ant
irritating.
"a tax on gross sales Is an idea
development of these requirements, h,
added. 1T is passed along in yer,
small fractions and added through thu
various processes from the producer Of
raw material to stage after stage durinf
manufacture, the tax almost collectin,
itself, accumulating automatically al
it proceeds, and is finally paid by tn,
consumer practically without his knowl
edge, and the additions are 80 trihin;
as not materially to affect prices"
Mr.. Price in his address declared tn,
present surtaxes pena!ize success ant
compel an enterprlslng man to pay tn,
government an immoderate share of his
gains in profitable year. leaving hin
to bear the losses of an unproftabl,
year alone.
Explaining the employers privileg,
tax which he proposed as substitute
for the present system, Mr.. Price sale
manufacturer or merchant whose
monthly disbursements for wages. sal
aries or. piecework totaled. $780, ,0O(
would at the end Of the month sent
statement to Washington with checl
for the amount Of his tax. If the tar
were per cent his check would b,
$4,000, which he would include in hi,
overhead charges and add to the sell
ing price Of his product.
"The price paid by the manufacturer
Of an entirely finished or market
able product for the raw or PARTIAL,
finished material that he used woult
have been correspondingly increased by
the employers privilege tax paid upor
the wages of those employed in it's pro
duction. and thus the price at which
the article was sold for consumption
would include all the employers privi
lege taxes that 1t had to bear in its
progress from the first producer to the
Ultimate buyer"