New-York tribune., 1920-12-06
Mott to Offer
Bill In House
{. or Sales Tax
Cnr Per Gent ;.e,y Would
Produce 81 OO0.OOO.OOO
iSevenuc Annually, SAYS
Oswcgo Representative
BLOW at High Prices
Asserts Proposed Substitute
Tor Excess Profits Charge
" oull Distribute Burden

4"i A@-N'toS TOlttS charge
" ould Distribute Burden
Representative Luther W Mott a.
oswego. of the House Way and Mean,
Committee. announced yesterday that
he would introduce Wednesday a bill
providing for a general sale tax Of
per cent. The bill exemots personal
services and small sales.
His measure, he explained to The
lrlDune, II it becomes law would mean
an income Of $4,000 600 OO0 annually.
ana would do away with most of the
present Federal taxes, effect spread
ing OF the tax load and a material low
erlng Of prices, and while providing
ample revenue for the needs of the gov.
einment would, at the same time. place
taxation on moro scientific sud equi-
sable basis
Those who hafc studied the ques-
ton. said congressman Mott know
ihat a sales tax would reduce prices
when it takes the place OF the excess
profits tax, surtaXes of the income tax
and some Of the special taxes.
THE Department Of ], stice has esti-
mated that at least 2e.2 per cent of
present prices is attributable to pv,a-
mided business taxes W. Chester
Gray. Boston tax authority, claims that
approximately 40 cents of everv dollar
paid out BY the consumer is paid be-
cause Of these taxes
Reform In Tax Laws Needed
The most universal opposition to
the revenue act Of 1918, the crushing
burden It has imposed on business. the
transfer of steat sums Of money from
the open investment market to the tay-
free refuge Of municipal and Federal
securities, the threat of great indus
trial concerns to move from this coun-
try 10 escape the weight of taxation
the tendency toward deceit and waste
winch the present tax laws have pro
duced the general conviction that thev
are IN a large mea sure responsible for
the greatly incieased price of living
commodities. have all resu ted in cor
Vlnclng the great mass Of thinking
people that 4 complete reformation OF
our tax laws is needed 1t il yecop-
nted States will require substantial Y
the same revenue as is required now.
he problem then is to tind a more
equitable form OF taxation, one that
VIII raise approximately as much rev
enLe as the present law, bat viii have
none OF Its fau Is. Suggested minor
changes IN the act of 1918 as for ex-
amp C. the aboiltion of the excess prof
ITS tax and the substitution in its place
OF COrSiIr1Otlnn
sugar, or an increase in the price Of
hrst class postage to three cents.
would accomp lsh nothing lasting.'
Tax During Civil War Popular
Representative Mott recalled that this
country imposed sales tax during the
civil War and that it proved so poDu-
Tar mat 1t was not repealed for several
years thereafter" and that France and
Germany each adopted one during tho
var. He quoted from the report Of the
Brtlsh Board Of Trade Journal on the
German sales tax, which wa character
lzed as remarkable extension Of a re-
Gently introdrced financial device with
almost unlimited fields for further ex
plotation.
"A taH on sales said CONGRESSMAN
Mott may best be described as tax
on outgo as opposed to the present
taxes ON income. 4 person is +axcd or
what he spends. not on what he re-
celTes. sales tax puts premium on
thrift and fine on vast Such tax
would apply to every one. because every
one must spend m sney 1t would be-
paid By tie alien within our gates as
Well - by he American citizen. bv the
'aborer a well a by the capitalist. bv
the poor and by the rich. all in direct
proportion to the amount of money
Aent by each.
Ley Above $500 Business
~ would ne obviously impossible to
apply the sales taN to small dealers.
such as newsboys and itinerant dealers.
Il has. therefore, been tacitly assumed
That sales aggrcgating less than $500 3
month woul be exempted from the
operation Of .he law This would ex
empt about all the dealers whose sales
are so small that they seldom keep ac-
counts. Dealers whose gross business
aggregates that amount or more ought
10 hscp accounts if toey don't and the
government viii be doing them favor
m comp Hing them 70 keep record Of
their transacti0rs."