The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1920-12-08
INCREASE IN TBIS
CONTINUED from Page onel

and $10, 900, the whole estimated %
yield $150, $4,000 annually.
A tax Of two cents gallon on
gasoline for mtor cars and an other
purposes, 10 yield $sO,0OO,000.
A federal license tax Of 90 cents
ssler horsepower on the use OF mo-
tor cars 10 yield 100000, 1000.
" An additional sales tax on auto
dlobileS (other than trucks aud
Wegons) and motorcycles and mo-
TOR car accessories to yield $780,
a ten per cent. additional tax on
theatrical admissions to yield $7O''
100000.
An additional-tax Of 50 per thou
sand on cigarettes to yield $7O,OOo''
An additional tax Of rs cents per
thousand on cigars to yield 9b'OVU''
100.
An additional tax OF 8 cents per
pound on tobacco and snuff to yield
sss,0OO,UOU.
An additional tax Of 5 per cent.
on candy to yield $20,OoO,O0O.
An additional tax oil per cent.
on chewing gum to yield S2.OVVr'
200.
An additional tax OF per cent.
on toilet soap anu toilet'sORp pow
deFs to yield $4,000,OUO.
A 10 per cent. tax on tho sale by
manufacturers, producers or i'm
porteTs Of perfumes, cosmetics ana
medicinal articles in lieu OF the
present tax on the consumer 10
Yield $4,000, 900.
An additional five per cent. tax
op' jeWelr;' and precious metals TO
Yield S26,V00,0OO.
An additional tax OF per cent.
on musical instruments 10 Yield
Z SIS,OOU,g00.
An additional tax Of per cent.
ON notion picture films TO yield
St,00O,0U0.
In the REIMBURSEMENT OF SurtaXes,
\ Mr.. Houston proposes the division
incomes into ''suved" or reInvest.
and spent" On the former
ss he would limit the highest
TO 20 per cent whue the tn'
6nae spent would be subjected 70
u . tax ranging as high as bU per
cent, gnuer the plan proposed by
the Secretary, incomes between So
GEO ana $6,HUO would be taxed 2 per
cent, on the part saved and tho
same on the part spent. The same
ratio with graduated increase
would apply to incomes up TO $780,
100 where the maximum OF 20 per
cent, on saved incomes Is reached.
From $4,000 to S4U,UO0, the rates
would be 20 per cent. On saved ana
as per cent. on spent; $4,000 to
4 $50 900, 20 per cent. and 80 per
cent; $4,000 to $4,000, 20 per
cent. and IS per cent; $4,000 to
100000, 20 per cent, and 40 per
cent, and over S1O0,QUU, 20 per
cent. or total tax Of 10 per cent.
The present maximum rate 10 ~
per cent. on incomes OF Sl,00e,000,
Gibpt Mr.. Houston declares 1t has
Iong passed the point OF its mini
4 mum productivity" since It encour.
ages the investment in stax-exempt
Becurities. He says the only effec
tive way to tax the rich is TO adopt
rates that do not force Investment
In tax.exempt securities"
THE new rates not laying as high
levy against the great incomes
will, the secretary expects, produce
q greater return to the government
since the wealthy class will not
lind 1t profitable to invest in bonds
Of states, countries or municipal
lies which are tax-exempt, but pay
O lower rate OF interest.
'tThese possible sources Of in.
come are mentioned for the inror-
nation Of Congress" Mr.. Houston
says. while l shall not attempt
to discuss. them, attention should
be called to the new and additional
consumption taxes. Reasons have
been given for the belief that no
4 9Iid objection exists to the en-
ployment OF q moderate number OF
consumption taxes properly select
co. but it would, in my opinion, be
neither wise nor expedient to In
crease radically the volume OF CON
sumption taxes. The articles
included in the suggested list of
additional consumption taxes have
not been selected because their use
Is particularly harmful or In any
sense less legitimate than those not
included. Consumption taxes must
|, be Judged by practical standards.
What should be sought are few
Consumption taxes which tap the
surplus income which Ms being
wasted, not a conglomerate multi.
plicatIon Of petty taxes upon every
article Of luxurious or unnecessary
consumption which can neither bs
clearly defined, cheaply collected
nor administered without wide
spread evasion"
The repeal OF the tax on soda
fountain and other beverages Is
asked, the secretary rays, because
the collection OF the tax, the ag.
grsgate of which is small, has pre-.
sented AN administrative problem
Of magnitude. Added to that, Mr..
Houston says, there has been con
slant and widespread evasion OF
fSuch taxes.
The excess profits tax, NIr. Hous-
ION declares, has not fulfilled the
theoretical grounds upon which it
was enacted and has been fouud
to be wrong both In theory ard in
palttical philosophy. He says it
flisoriminRted against the Conser'
YatfveIy financed corporation while
aiding materially the firms whose
Capitalization is exaggerated. He
urges that 1t be replaced by some
form OF a corporation profits tax
sSTok nnIy on the grounds OF the