Pine Bluff daily graphic., 1920-05-16
BILLION PER YEAR PAID FOR LUXUR|E:S
 IN NEW YORK CITY
Candy, Jewelry, Furs and Autos Get the
 Most

New York, May 13.-LuXury buying in New York is now going on at the rate of s1 O,Oo0.oo0 year judged by the amount of luxury taxes-ag- gregating $10,500,000 month-whlch are being collected by William H. Ed wards, United States Collector Of h. ternal Revenue for Manhattan. hi February, according to the Collector, the government received from his ot- flee S2,000,000 more in luxury taxes than was paid in any previous month in the history of the department. The month of April probably will exceed them all. The receipts he says, have been mounting higher and higher for six months.
 "What some people call the orgy of spending has not exhausted It. self,'' said Mr Edwards today, "but my men, in their talks with merchants and others who pay the great bulk of the taxes, have been told that the peak of extravaganza seems to have been reached and that a period of retrenchment is close at hand.
 "We hear a lot about the income and excess profits tax which falls due in the spring of every year and about the hardships of meeting it but the fact is that the steadiest tax, and one which is least felt by the public and of which we hear very little is the luxury impost. The poorer chap who buys his girl an ice cream soda does not grumble at the penny or two tax any more than does the rich youth who presents his fiancee with dia- mond tiara or a touring car. Neither misses it as the item is so small as compared with the expenditure.
 "A kings ransom was spent for candy last December but the biggest revenue came from dealers in ltwelry, furs and automobiles. The theatres 1 showed that in January they did an unusually prosperous business. When persons start to economiZe they usu- | ally cut out amusements but in Jan uary, in the borough of Manhattan $783, ,S91.43 was paid in taxes. Multiply that by ten and you will get some idea of how much Father Knick- erbocker and his guests are paying to be entertained at just the thea 1 ters. There are no indications of any panic in these figures. The man who said: Always be bull on the U. $. A seems to be vindicated.
 "An interesting thing about luxury tax is more revenue is being derived from ice-cream sodas and other small sales which carry a penny or two tax than there is from the sale of motor cars, diamonds and other luxuries i Druggists paid large sum on ex, pensive perfumes and cosmetics. Ev, cry manufacturer, producer or inn porter is required to make such re. turn as will clearly show each taxable 4 transaction in the sale of certain goods and these are verified by reven. ue officers. Section 904 of the Rev { enue Act of 1918 provides that 'on and after May l, 1919' the tax of 10 pel cent shall be levied and collected or luxuries, including many kinds of eX- Ipensive articles in daily use. In the sale of these articles the dealer acts as a collection agent for the gov ernment Other taxes are paid in the form of stamps.
 off in the receipts of income and ex- cess profits taxes this year was the Cone of the reasons for the falling deduction which the taxpayers made for sums which he paid to the govern.
 ment for luxury, proprietary and other taxes. Here is an illustration Let us say that man takes his wife to the theatre twice a week. He pay: $6 each time he goes for two tickets The tax on each of the seats is 3( cents. On four seats week he pay; $1.20 and in one year S62.40. He i: privileged to deduct that from his ne income before computing his income tax. The same rule would apply tt any other tax he may have paid to th' government durinng the year. A per son, however, is required to prov' that he actually expended the money for luxuries if any question is raised on his return. There have been com paratively few attempts at evasion In fact, the amount received by thi: office in luxury, and other taxes i: monument to the honesty of the ma jority of the people of this grea' city"