The Cordova daily times., 1920-05-20
ENORMOUSS(JMS PAID IN TAXES
 ON LUXURIES

York is now going on at the rate Ol l $1,200,OO0, ,000 a year judged by the amount of luxury aggregating i $1O,50O,O00 a mOnth-which are being
 collected by William H. Edwards
 United States Collector of Internal Revenue for Manhattan. In February ] according to the collector, the govern ment received from his office $2,0OO,' i 900 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 Edward 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 reach and that a period of re- trenchment 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 doesn't grumb1e at the penny or two tax any more than the rich youth who pre- sents his fiancee with diamond tiara or touring car. Neither misses it as the item is so small as compared with the expenditure.
 GA kings ransom was spent for candy last December but the biggest revenue came from dealers in jewell ry, furs and automobiles. The theaters showed that in January they did an unusually prosperous business. When persons start to economize they usually cut out amusements but in January, in the borough of Manhattan alone, $783,891.43 was paid in taxes. Multiply that by ten and you will get some idea of how much Father Knickerbocker and his guests are pay ing to be entertained at just the theaters. There are no indications Of any great panic in these figures. The man who said: Always be a bull on the great U. :. A seems to be viii d:cated.
 "An interesting thing about the lux ury tax is that more revenue is being derived from ice cream sodas and other small sales which carry a penny or two of tax than there is from the sale of motor cars, diamonds and other lUXuries. Druggists paid a large sum on expensive perfumes and cosmetics. Every manufactureG producer or inn porter is required to make such re- turns as will clearly show each tax able transaction in the sale of cer- tain goods and these are verified by revenue officers. Section 904 of the revenue act of 1918 provides that "on and after May 1, 1919,' the tax of 10 per cent shall be levied and collected on luxuries, including many kinds of expensive 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.
 One of the reasons for the falling off in the receipts of income and ex- cess profits taxes this year was the deduction which the taxpayer made for sums which he paid to the govern ment for luxury proprietary and other taxes. Here is an illustration: Let us say that a man takes his wife to the theatre twice a week. He pays $6 each times he woes for two tlcketS The tax on each of the seats is 30 cents. On four seats a week he pay $120 and in one year $6240. He is privileged to deduct that from his net income before computing his income tax. The same rule would apply to any other tax he may have paid to the government during the year. A per son, however, is required to prove that he actually expended the money for luxuries if any question is raised. on his return. There have been compara- lively few attempts at evasion. In fact, the amount received by this of flee in luxury and other taxes is 8 monument to the honesty of the ma- jority of the people of this great city"
 Riika Pekkala and Emil SavOla