Capital journal. (Salem, Or.) 1919-1980, 1921-02-28
U.S.. Chamber Of
ConllnerceAgainst
Excess Profit Tax

| Excess Profit Tax
An overwhelming demand for re-
peal Of the excess profit tax is
made by American business as
shown in a referendum vote of the
organizations within the member
ship OF the Chamber of Commerce
OF the United States. The results
OF the referendum were made pub
lie today through the Salem Com
mercial club.
The ballot was taken on a re-
port OF the national chambers
committee on taxation, which ad-
vanced fifteen proposals for chan
ges in present methods of federal
tax levy.
Although the committee recon-
mended substitutes TO mhe ex-
cess-profit tax the vote on these
proposals was not conclusive. A
considerable majority voted against
an increase in income taxes, and
at the same time there was a ma
Jority against any form of sales
tax, which had been suggested both
as substitute for and as an addi-
ton to other forms of tax.
A proposal that excise taxes be
levied partly to take the place of
the excess-profit tax was carried.
In the chambers referendum
system a two thirds vote is neces-
sary to carry. The propositions
submitted and the vote on each
follow:
l. The excess-profit tax should
be repealed - for, 1.71S; against,
"a. Carried.
2. Revenues now derived from |
the excess profit tax should be |
obtained mainly from taxes on in
comes---for, 571; against, 1904. |
Not carried.
3. There should be excise taxes
upon some articles OF wide use but
not OF first necessity - for, 1,2l7:
against. 504. Carried.
4. Should a sales tax be levied
instead OF the taxes mentioned in
and az for, 7O4;
against, S55. Not carried.
b. Should a sales tax be lowed
N addition to such taxes as are
mentioned in propositions and 8?
for, 1853; against, 894. Not car
ried.
8. Members voting in favor OF
question 4 or question are re-
quested to Indicate the type of
sales tax they advocate:
a. A general turnover tax-for.
511.
b. A limited turnover tax-for,
1870.
C. A retail sales tax-for, Sal.
l. There should be moderate
and graduated undistributed earn
Ings tax on corporations-for, $40:
against. l,O63. Not carried.
8. Each individual stakeholder
Of a corporation should pay his
own normal tax-for, 693; against,
@75. Not carried.
3. Income from any new issues
IF securities which may lawfully
De made subject to federal tax
'hould be taxable - for, 1886;
lgainst, 275. Carried.
10. American citizens, resident
Ibroad should be exempt from the
american tax upon incomes de-
'ived abroad and not RENTED to
he United States-for, 1859;
Igainst. 456. Carried.
IL. Profits arising from sales of
'apital assets should be allocated
'ver the period in which earned
md taxed at the rates for the sew
raj years in the period--for, 14l1;
gainst, 243. Carried. {
IL. An exchange OF property of
like or similar nature should be ]
onsidered merely as a replace
lent-for, l,547; against, 142.
arried.
Is. Net losses and inventory l
'sses in any taxable year should
luse redetermination of taxes on
lcome OF the preceding year-for, e
$50; against, l42. Carried. i
lS. Net losses and inventory s
sses in any taxable year should v
luse re-determination OF taxes on i
ieome OF the preceding year Ii
n, 1850; against, 32S. L
II. Ascertainment by the gov
nment of any tax based on in l.
me should preeede payment - X
r, l,2l5: against. 47s. Carried.
10. Administration OF income Ii
xation should be deeentralized- m
r, 1872; against, $50. Carried. n
The vote makes il clear that the II
lsiness men are united in their m
ew that the excess profit tax te
Impers business operations and
tards the progress of re-adjust- OF
ent. Among the objections to the b,
X as pointed out by the commit
E are that it produces inequities; by
at Il is difficult of administra-
IN; that price reductions will be
crease revenues from this source CT
d that the tax encourages ex-
,vagance. r,
A striking reaction was shown X
the vote against increasing in
me taxes. IL was obvious to the c.
lers that such increases would,
I on theh middle class of in
mes, since little more can be de-
ed from smaller incomes, and ar
cause taxes already are so high W,
the larger incomes that those of
ewing large incomes are invest foi
! in tax-free securities and thus les
eating the purpose OF the tax. no
- re;
IOTTRNAI. WANT Ans nav Ihri