New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-20
Banker Urges
Sales Tax to
Avert Crisis
]. S. Bache Tells Rotarians
That Present System Is
1nequitable and May Lead
TO every Bad Tines
Cites Case of Railroads
Says Government Operation
at a Loss Threw Burden
of Deficit on One Glass

There is no question that the present
inequitable system Of taxation is MAX
ing for added living costs and in
| creased extravaganza, and that Every
bad times" are coming, Jules S. Bache,
banker and member of the New York
Stock Exchange, told 800 Rotarans
and their guests yesterday at lunch
con in the McAlpin Hotel
Mr.. Bache is the advocate of n sales
tax plan, the adoption of which, he
declared, is the only panacea for an
economic situation that is growing
more and more critical. He spoke on
"a Practical Tax in Lieu of Confsca-
tion," and at the conclusion of his adj
dress President Knoeppel, of the Ro-
tary Club, announced that the clubs
board of directors would take the plan
under immediate consideration for pre-
sentation to the club at the next meet
ing.
The Broadway Association, repre-
senting a thousand business concerns
along that thoroughfare, already has
Endorsed the plan. and the Tax League
OF America is being organized to agi-
tate Tor Legislation which would abol-
ish the excess profits and other spe-
clal taxes, make drastic revisons in
the income taxes and substitute the
tax on sales.
VIII Seek Other Clubs Support
The Rotary Club, President Knoep-
PEI SAID, would take up Mr., Bache's
plan with a view to obtaining the in
dorsement of every Rotary Club in
America. A score of Rotaran guests
from other cities who heard Mr..
bache's address took his MESSAGE back
to their own clubs.
The taxing situation in this coun-
Try, said Mr.. Bache. sis at this mo-
ment exactly where the railroad stu
aton was under governmental opera
aiGn, IN mat under government oper-
alton, always at loss, the loss was
made up by increasing the burdens
OF the four or five hundred thousand
people who pay the taxes, leaving the
balance of the nation to use the rail
roa 1dYi on unremunerative terms.
w men Congress in enacting the Cum
INNS bill decided that the entire nation
through increased rates, should paw
each one, his fair share of the upkecn
&
IN my opinion, that should apply equal
~ in taxation.
One could argue that everyone is
paying his proportion of the tax bur
den now, since every component part
OF the community is consumer. and
all consumption is paying, and paying
even IN an exaggerated amount, through
the excess percentages of profit added
on all goods - added in SO much
greater proportion than the returns re-
celVed by the government warrant But
1t is only these unfortunate results of
tins method of general distribution
which compel US to stop and seriously
regard the final results of the present
system, If allowed to continue.
The very bad times to come under
present taxation will be the best ar
gument for the substitution of the
sales tax.
Uncertainty Hampers Business
The problem to the farmer is whcth
er he is to pay 40 per cent, as at pres
ent, on what he buys, or per cent on
what he sells. No merchant or manu-
tacturer can tell at the commencement
of his season how much goods he Will
sell, or how much he will make on the
sale Of those goods. But he is poor
merchant if he does not contemplate
the worst that can happen to him, which
is 40 per cent tax, and he is going to
add that amount at the start, so that.
no matter what the final result, he will
not be the loser"
Senator Harding's stand with regard
to the Cummins railroad bill, Mr. Bache
remarked, could be taken as GOOD evil
dence as to the Republican Presiden-
tial nominees attitude toward the
present tax system. The matter was
not partisan, though, he emphasized,
and it should command the support of
Democrats and Republicans alike.