Evening star., 1920-04-24
NEW WTAXPR0P0SAL
F0RS0LD|ER BONUS
Representative Alderman
Would Distribute Burden
and Not Hamped Capital.

The first answer from the republican
side of the House to the speech of
Representative Henry T. Ratney. dem
ocrat. of Illinois. regarding the tax
measures that must be employed to
meet the service bonus proposal comes
from Representative Ernest r. Ack-
erman of New Jersey, who substitut
ed as Governor Of New Jersey when
Woodrow Wilson was making his
campaign tour for President.
Representative Ackerman urged the
passa ge Of his own bill to l"vy tax
Of % cents on each 800 worth of
business done, or an average of "A
nickel a day on the people of the
United States. He estimated that it
is capable of raising more revenue
, than the excess profits tax and is more
equitable, inaSmuch as it spreads the
levy over a larger area of business
transactions and does 1t in such a
way that business is not hampered or
! made to feel that it is being made to
bear the brunt Of the excessively, high
taxes.
Blow Mt Profteering.
1T also at the same time is a direct
| blow to profiteering. he says, and ex-
| plains that investigations by various
government agencies have tended to
| show that merchants and manufac-
turers are either unconsciously prof
| iteering to pass the taxes on TO the
| consumer or are doing so deliberately
under the plea that they are obliged
! to make the high charges to meet
| their obi cations TO the government"
Representative Alderman put into
| the record letters and kilograms from
business leaders all over the coun-
try showing how financial institu-
tions. chambers of commerce and
other organizations concerned espe-
cially with the economic life of the
| country feel.
In explaining his proposals. Repre-
sentative Ackerman said in part:
W. Wealth must not be allowed to
sulk. AS a Sluggard it will not be
tolerated. 1t must not be coddled. IT
must not be unfairly punished 1t
must be shown its duty.
ALREADY we are informed s4 00h.-
900, 900 of hitherto active capital has
been withdrawn from productive in
dustries and invested in non taxable
securities.
Production shown Necessary.
Mr.. Otto Kahn points out that the
only way we can assist Europe to get
on its feet and thus stem the tide of
bolshevism is by saving so that we
can lend and export, and we cannot
save unless we produce more than We
consume.
IF production is therefore curtailed
by those possessing liquid wealth by
withholding 1t from participation in
enterprise which would be taxed. and
that heavily, then production being
curtailed. no surplus exists, prices
rise. and help must necessarily be
withheld. our exports will decline
our merchant marine will languish
and we will be speedily headed for
economic and financial disaster.
ITO my mind. it is an Imperative
duty to attract capital in the hands
of those who have rightly acquired
it to enterprises which by constant
activity will bring reward-yes. even
rich reward-so that capital will not
draw itself into a shell of protection
by seeking out investment in the
fourteen billions of non taxable secu-
rites which are existent at the pres
ent time and which bid fair to be
increased far beyond that figure.
Even the new Secretary of the Treas
ury sees that the cumbersome forms
| of income tax as we'll as excess prof
| it's taxation and surtaxes on incomes
must be revised so as to afford re-
! lief II disa st ster-and imminent at that
lis to be averted
Would Increase Revenue.
my bill calling for a small turn
over tax of one-half of / per cent. or
25 cents per 800 on all business
| opera lHc
States. if applied to the base of 1.4s4
billions, would produce 3,71o millions
of revenue, or far in excess of the
| tax now collected. and which would
be a permanent and proba bly, increas-
! ing source of revenue and not an eco
nomic monstrosity founded on shift
! ing financial quicksand.
Would not this tax rest lightly on
the general public and would not all
! business be greatly stimulated there
by"