Arizona republican., 1920-12-20
COMMERCIAL BODIES
 ASKED ID EXPRESS
 TAX REVISION VIEWS

More than 1,400 commercial and in dustrial organizations throughout the country, including the Phoenix cham Der of commerce have been asked by the chamber of commerce of the United States to register in a national refer endum vote their views on the question of revision of federal taxation laws.
 The vote is on Is proposals for radi- cal changes in methods of levy, ad- vanced by the national chambers com mittee on taxation, which made its report after nearly years study of the subject.
 In sending out the report for a vote the board of directors of the national chamber makes it clear that the board itself neither approves the recommen- dations nor dissents from them. The sole purpose is to obtain the opinion of the country's business organizations and not to get approval of the report itself
 Only the vote of the member organi- cations can commit the national cham Der for or against any proposition. Meanwhile, the report and its conclu- sions rest solely upon the authority ofI the committee that signs it.
 The different propositions upon which the chambers members are be- ing asked to express their views are:
 T. The excess profits tax should be repealed.
 "2. Revenues now derived from the excess profits tax should be obtained mainly from taxes on incomes. 5. There should also be excise taxes upon some articles of wide use but not of first necessity
 A. Should a sales tax be levied instead of the taxes mentioned in pro- posal 2 and above?
 70. Should sales NtaXe be levied in addition to such taxes as are men tioned in propositions and 8 above?
 "6. Members voting in favor of question or question 5 above are asked to indicate below the type of sales tax they advocate: (a) A general turnover tax.
 (b) A limited turnover tax. (c) A retail sales tax
 -. There should be a moderate and graduated undistributed earnings tax on corporations.
 'S. Each individual stockholder of a corporation should pay his own nor nal tax.
 | securities which may lawfully be made subject to federal tax should be tax able.
 '10. American citizens resident abroad should be exempt from the American tax upon income derived abroad and not remitted to the United States.
 I'll. Profits arising from sale of capital assets should be allocated over the period in which. earned and taxed at the rates for the several years in the period.
 ''12. An exchange of property of z | like similar Chn hn sidered merely replacement. | '13. Net losses and inventory losses in any taxable year should cause re- | determination of taxes on income of the preceding year.
 '14. Entertainment by the govern ment of any tax based on sincome should precede payment. | 15. Administration of income tax ation should be decentralized."
 The proposition with regard to the sales tax is included in those to be voted on, despite the judgment of the committee that such a tax is imprac- ticable, because of the wide interest l In proposals that have come from a 1 number of quarters of a tax of this nature.
 The committee makes it plain that in its opinion the governments ex- penses will remain high for some time to come. With this in mind it sets forth that the revision it proposes is not aimed at reducing the amount of
 yield, but in changing the manner of
 levymg important taxes. Frank recognition of the situa- , tion,'' the committee says, brings
 realization that the country must con- tlnue for several years to bear heavy ) burden of taxation Strict economy by the government and on the part of the people is urged The government, says the committee must use the proceeds of taxes only
 for purposes which are essential, re- : ducing the billions of floating debt and l abolishing annual deficits in the treas t ury. This is no time," the report declares. for diversion of the receipts T from heavy taxes, gladly assumed ir patriotic support of war, to new un- } dertakings of doubtful public benefit The committee, in putting forthl its . recommendations. goes into eacf g proposition in some detail For tht l benefit of organizations asked to con.
 slder the report the referendum pam f phlet accompanying the ballot cites al = length negative arguments on eacI l proposal advanced by the committee :. This gives those voting the opportun- h lty to study considerations for ant r against each proposition. ], AdhInS up IlrSI the committed <
 statement that taxation must remain
 high the negative argument declare. !. this to be a matter of judgment based o on the governments financial situa. t tion and that opinions may differ. I
 points out that the government ha. d certain realizable assets. incIudins s merchant vessels. and that it migh
 not be necessary to retire its outstand
 ing securities as rapidly as is con templated
 = Members of the committee signin, d the taxation report, except as the, r dissent on the points indicated are:
 R. G. Rhett, president Peoples Ma
 tonal Bank, Charleston. s. C., chair
 man.
 e Arthur Anderson, Arthur Anderson and company. Chicago. s R. G. Elliott, Jaques Manufacturinj company Chicago.
 = John H. Gray. Carleton College
 Northfield, Minn.
 Fred R. Fairchild. Yale University
 New Haven Conn.
 J. Laurence Laughlin, professo
 Emeritus of political economy. Uni
 versity of Chicago.
 Thomas B. Stearns. Stearns Rope
 Manufacturing company Denver.