The Washington herald., 1920-11-27
BANKER HAS
TAX REMEDY
Jules S. Bache Would Col
lect from Gross Sales and
Incomes Over $1,000.
By RAYMOND q. CARROLL.

NEW YORK. Nov. 2s.-Jules S.
Bache, banker. is a man with an
economic remedy for the United
States. There are plenty Of folks
eddying around in this country who
are full of criticism. but few have
the courage to step forward pre-
senting a concrete plan for a cure
Hearing that Bache was talking
out loud on tax revision. the writer
entered his once at az Broadway,
and upon invitation took a seat
alongside his desk and listened.
Briefly, my proposal is a Fed
eral tax on gross sales, to be called
the turnover tax" he said. Only
sales aggregating $500 month, %
$4,000 a year. will be levied upon
The rate will be l per cent. The
tax will be remitted monthly into
the Federal tax bureau. While 1t
is difficult to estimate the volume
Of money that can be raised in this
fashion, I have had it looked into,
and about $4,000. 100000 annually
can be counted upon. This will lift
every existing Federal tax but
5 per cent normal income tax on
$1,000 and over and a protective
tariff sufficient to raise a minimum
OF s5oo.ooo, ,ooo."
shows beauty OF scheme.
"How about the farmers and
labor" was asked.
Under the exemption from taxa
ton Of sales below 5000 a year
more than so per cent of the farm
Aa n and
labor practically none at all" said
Bache. He went on to state that
the gross sales tax was today sue
cessfully operating in Canada and
France. The bankers main argu-
ment setting forth the advantage OF
the turnover tax" is the wholesale
freeing of money. The moment
you take the burden Of eNcessiV~
taxation from the capitalist you re-
lease his money for constructive en-
terprises," he said. Il estimate that
the repeal Of the excess profit taxes
and the income surtaN, which can
supertaxes, will release upwards OF
three billions OF dollars per annum
for these constructive enterprises
which include the building up of do
mestic enterprises as well as those
abroad in the rehabilitation OF which
we will serve our neighbors as wen
as ourselves"
Bache says that much capital that
has fed for refuge into state, munie-
ip"l and other tax exemption bonds
will return TO the financing of fresh
industrial enterprises. There is an
annual income of ss5o,oo0,0oO he,
said, now tied up in tax exemption
securities Of this sort
world Population Moving.
Concerning world population
shifts bound to take place as the re
suit of the war, Bache said: The
entire population of the earth is now
In a state OF transition. Pride in ma
tionality has been undermined by
the war. We see the English miner
forgetting that he is an Englishu1an
and thinking of himself alone In
terms of wage betterments. There
is a mass of people at every foreign
port waiting to emigrate to the
United States, / predict that In the
coming twelve months we will re-
ceive well over 100000 immigrants
in this country, not one Of whom can
ture Federal taxpayer.
JUST lOOh a. IL LIOIh oAONhSA
angle and stop and think. What
men of vision, choosing a new cour-
try TO go to, would select for
permanent home a country that mo-
tifies the min advance that should
they or their children attain an
annual income of $4,000 it will
confiscate up to Sc per cent of their
income? Americans with $1,O00.0oo
or more income now pay IS per
cent of their fortunes"
Plan Would Cheaper Money
Bache insists that the theory that
any tax rests where il is applied is
fallacy. He says that the capi.
talist simply insists upon having
10 per cent for the use of the very
money he formerly let out at from
to per cent. His plan would
bring cheaper money.
Ninety per cent OF our present
population" he said. ARE under the
dsiusion that they are now escaping