New-York tribune., 1920-05-09
Orgy
Still On, Luxury
Taxes Reveal
Collector Edwards Announc-
es That Manhattan Is
Buying at the Rate of
500, 100000 a Month
Peak Believed in Sight
Collections From Sale of Ice
Cream Sodas Lead Dia-
mOnds, Furs and Autos

William H. Edwards, Collector of In
ternal Revenue for Manhattan, in a
statement issued yesterday, declared
that what some people call "the orgy
of spending" has not exhausted itself
In support of this statement he an
nounced that more than $100,0O0,0O0 a
month is being spent for luxuries in
Manhattan, basing his estimate on the
s1O,5oo,ooo received by his office each
month in "luXury taxes"
eve have heard a lot of the excess
profits tax which falls due in the spring
Of every year." Mr.. Edwards said.
"There are some people who complain
of its hardship, although the expert
ence of my, Office has been that by far
the greater majority are willing and
anxious to help defray the expenses of
the government brought on by the
war.
"The steady tax which is least felt
by any of the public and of which we
hear very little is the so-caled luxury
tax. The proletariat chap who buys his
girl an ice cream soda does not grumble
at the penny or two tax any more than
does the plutccratic youth who buys
his fancee a diamond tiara or an ex-
pensive touring car. Neither misses it,
as the tax is so email compared to the
expenditure.
Peak Nearly Reached
During the last six months there
has been steady increase in the re-
ceipts from luxury taxes. In February,
1920, more than $2,ooo,ooo more in
luxury taxes was paid to this office
than in any previous month The in
crease has been steady My men. how
ever, in their talks with merchants and
others who pay the great bulk of the
luxury taxes, have been told that the
peak of spending seems to have been
reached and that a retrenchment period
is close at hand. Our receipts, how
ever, do not show that that retrench-
ment has arrived. While the taxes for
April have not all been received there
is every indication that it will be the
biggest month in the history of the
Office for the payment of luxury taxes.
There was big jump in December
Merchants declared that there never
was known such a money-spending
throng. The largest taxes were paid
by dealers in jewelry, furs, automobiles
and candy. A kings ransom was spent
for candy.
"For years the thcaters have proved
a barometer of the nations prosperity
or adversity. When money is scarce,
when period of retrenchment is about
to set in, the theaters are the first
to fash the signal If there is any
such period near at hand the thcaters
do not show it. Their figures show
that in Manhattan alone they paid in
January $7S3,S91 .43 in taxes.
Ice Cream Tax Heavy
"My accountants snow that there is
more money collected in tax from ice
cream sodas and other small sales
which carry penny or two tax than
there is from the sale of diamonds,
furs, touring cars and other expensive
items. There was a big tax paid by
druggists on expensive perfumes and
cosmetics.
THE collection of the luxury tax
when it was first proposed presented
problem, but now the organization
of this office is so complete that | do
not think | am eXaggerating when |
say that those who evade the pay
ment of tax make up an absolutely
negligible quantity
1T is IN the imposition Of the deal
er's tax that the public is made aware
of a luxury Section 9O4 of the
revenue act of 1918 provides that there
shall be paid tax equivalent to 10
per cent in excess of certain amount
for any of the following $~ticles:
Carpets and rugs, picture frames,
trunks, travelling bags, sutcases, hat
boxes, fitted toilet cases, purses, pock-
etbooks, shopping and hand bags,
portable lighting fixtures, umbrellas,
parasols, house or smoking Jackets,
bath or lounging robes, waistcoats,
sold separately from suits, women's
hats, bonnets and hoods, mems hats
and caps, boots, shoes and slippers,
neckwear, silk stockings or hose,
shirts, pajamas, nightgowns, under
wear, kimonos, petticoats and waists.
The luxury tax is paid by the
-