Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1920-07-01
PAYS BILLION
FOR LUXuR|ES
New York Is InduIging in Orgy of
Spending.
UNCLE SAM REAPS BENEFIT
Government Gets $1o.5o0,o0o a Month
as Result Of Extravaeance-LittIe
orumbing on the Luxury Impost-
Collector Of Internal Revenue Be.
IIeves Period Of Retrenchment ls at
Hand.

Luxury buying in New York Is now
going on at the rate Of $1,000 600 900
year. judged by the amount of lux
ury taxes-aggregating $1O.5OO,OOO a
monfh-which are being collected by
william H. Edwards, United States
collector Of internal revenue for Man
haitian. In February. according to the
collector. the government received
from his office $2ND.OOO more In lux.
ury taxes than was paid In any pre-
vious month In the history Of the de-
partment. The month OF April prob
ably will exceed them all. The re-
ceipts. he says. have been mounting
higher and higher for six months.
"What some people call the orgy Of
spending has not exhausted itself"
said Mr.. Edwards. "hut my men in
their talk with merchants and others
who pay the great bulk Of the taxes.
have been told that the peak of ex-
travagance seems to have been reached
and that a period of retrenchment Is
close at hand.
Little GrumblIne on Tax.
1--WE hear lot about the income and
the spring of every year, and about the
hardship Of meeting 1t, 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 lux
ury impost. The poorer chap who
buys his girl an ice cream soda
doesn't grumble at the penny or two
tax any more than does the rich youth
who presents his fiancee with n da-
mond tiara or a touring car. Neither
misses 1t, 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 jewelry.
furs and automobiles. The theaters
showed that in January they did an un-
usually prosperous business. When
persons start to economiZe they uSu-
ally cut out amusements. but in Jan
uary, in the borough Of Manhattan
alone. S7S3 S01 .43 was paid in taxes.
Multiply that by ten and you will get
some idea of how Father Knickerbock-
err and his guests are paying to he en-
tertained at Just the theaters. There
are no indications Of any panic in these
figures. The man who said Always
be bull on the q. S. A. seems to be
indicated
Small Taxes Swell Total.
IAN interesting thing about the lux
ury tax Is that more revenue Is be-
ing derived from ice cream sodas and
other small sales which carry penny
or two tax than there is from the
sale of motorcars diamonds and other
Injuries. Druggists paid large sum
on expensive perfumes and cosmetics.
Every manufactures, producer or i'm
porter is required to make such re-
turns as will clearly show each taxa
BILE transaction In the sale of certain
goods, and these are verified by rev.
enue officers. Section 904 of the rev.
enue act of 1918 provides that 'On and
after May 1, 1919, the tax of ten per
cent shall be levied and collected on
luxuries, including many kinds Of ex-
pensive articles in daily use. In the
sale of these articles the dealer acts
as a collection agent for the govern
ment. Other taxes are paid in the
form Of stamps"