The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-12-21
TAX REVISION
IS NECESSARY,
KAHN DECLARES
New York Banker Tells Con-
gress That Healthy Growth
Depends on It
ASSAILS THE TREATY
Claims Economic Aspect of Trea
ty of Versailles Are
Unwise

Washington, Dec. 2l.-Business of
the country is demanding and must
have revision Of the tax laws if it
is to continue a healthy growth, Otto
Fl. Kahn, New York banner, told the
house ways and means committee to.
day in the course of a statement in
which he denounced economic aspects
Of the treaty of Versailles and de-
Clared for continuation Of income
surtaxes.
Washington, Dec. 21.-Proposed pro-
gram of federal tax revision, suggest
ing radical changes in. present me-
thods Of levy, was put to a referen-
dunn vote today by the United States
chamber of commerce.
lie proposals We're prepared by the
chambers committee on taxation,
which has made nearly a years study
OF the subject. In sending the pro.
posals out to a vote, the chamber
board of directors made it clear that
the board itself neither approved nor
dissented from the report. The sole
purpose of the referendum, it was eX
planned, was to obtain the opinion
Of the country's business organiza-
tiOns.
The propositions upon which the
chambers members were asked to
express their views were:
THE excess profit tax should be
repealed.
2-Rvenues now derived from the
excess profits tax should be obtained
from taxes on incomes.
3-There should also be excise
taxes upon some articles Of wide use
out NOT Of first necessity.
4-ShOuld sales tax 'be levied in
stead of the taxes mentioned in the
scond and third proposals?
Should sales tax be levied III
addition to such taxes as are men
toned in the second and third propos-
ais!
6--Members voting in favor of pro-
posal four or proposal five are asked
to INDICATE the type of sales tax they
advocate; whether a general turnover
tax, limited turnover tax, or retail
sales tax.
b. There should be a moderate and
graduated undistributed earnings tax
on corporations
S-Each individual stockholder Of
corporation should pay his own nor
NAL tax.
i 9-lncomes from any new issues
of securities which may lawfully be
made subject to federal tax should
be taxable.
lG--American citizens residing a.
broad should be exempt from the
American tax upon income derived
abroad and NOT remitted to the Unit
ed States.
11-Profits arising from sale of cap
ital assets should be allocated over
the period in which earned and taxed
at the rate for the several years in
the period.
l2-An exchange Of property OF
like or similar nature should Zoe con-
sidered merely as replacement.
13-,Net losses and inventory losses
in any taxable year should be cause
OF reformation and determination OF
taxes on income of the preceding
year.
14-Ascertainment by the govern
ment Of tax based on income should
precede payment. 5 "s e4sv.
DeceltraliZing
15-Administration Of income taxes,
or should be decentraliZed.
The committees own Judgement
with regard to sales tax was de-
cared to be that it was impracticabe.
The committee made it plain that
in it's opinion the government expens-
es would remain high for some time
aud it explained that the revision that
it proposed was not aimed at reduc-
.ns Tie amount of yield, but in chang
ing the manner Of levying important
taxes.
"trank recognition of the citation,
the committee said. brings rea!lza-
tiOn that the country must continue
for several years to bear heavy bur
den of taxation
Strict economy by the government
and on the part Of the people was
urged. The government, said the COM
mittee, must use the proceeds OF taxes
only for purposes which are essential
reducing the billions OF foatlng deDt
and abolishing annual deficits IN the
treasury,
Doubtful Benefit
"This is no time the report de-
clares, "for diversion Of the receipts
from heavy taxes, gladly assumed IN
patriotic support of the war, to new
undertakings of doubtful public ben
efit.'
The committee, in putting forth its
recommendations went into each pro-
position in some details. For the ben
eft of organizations asked to consider
the report the referendum pamphlet
accompanying the ballot cited at length
negative arguments on each proposal
advanced so that those voting con'u
study considerations for ana against
each proposition.