The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-09-30
SMOOT ASKS
8 PER CENT
SALES TAX
Manufacturers Levy Pro-
posed by Utah Senator Of
fered as substitution for All
War Assessments.
URGES REAL REVISION
fRy Associated Press,


WASHINGTON, Sept. 30.--A manu-
facturers' sales tax of three percent
was formally proposed to the senate
today by Senator Smoot, Republican,
Utah.
The senator explained that this
would be in substitution for "all Of the
various war taxes, the excise taxes,
luxury taxes, stamp taxes, capital
stock taxes, transportation, telegraph
and insurance taxes, the taxes on soft
drinks, ice cream, cosmetics, admis-
sions and dues, and all of the other
ST varietiese' of abnoxious, discrim-
inatory forms of taxation" which
would be repealed on next Jan. I, un-
der series of amendments to the rev.
enue revision bill offered by the SEN
ator
Repeal of the excess profits tax as
of last Jan. / instead of on next Jan. l
as planned by both the house and the
senate finance committee also was
proposed by Senator Smoot. Under
his amendments the corporation in
come tax would remain at 10 percent
but there would be no change in the
present tobacco, liquor and inheritance
taxes.
Text of Amendment.
The sales tax amendment reads:
THAT, in addition to all other taxes
there shall be levied, assessed, col
lected and paid upon every commod-
ity manufactured or produced, when
sold, leased or licensed for consump-
tion or use without further process of
manufacture, tax equivalent to three
per cent of the price for which such
commodity is sold, leased or licensed,
such tax to be paid by the manufac-
/ turer or producer"
at should be noted" said Senator
Smoot, that as the tax is imposed
only when articles are sold for con-
sumption or use without further
process of manufacture that the tax
will be non-cumulative in effect and
will give the integrated business no
advantage over the dis-integrated
! business.
There will be but one tax. If a
commodity is sold for consumption or
use in a further process of manufac-
ture no tax will be imposed For eX-
ample, crude oil sold for fuel would
be taxable, but if sold to refinery
| for the making of gasoline or like
| commodities, would not be taxable.
Provides Exemption
In order to avoid administrative
| difficulties with small sales, the bill
provides for an exemption of all sales
| of less than $4,000 during one year
| This will include about one per cent
| of the manufactured goods in the
country, according to the census of
! manufacturers.
1T will practically exempt all the
agricultural products since the aver
| age value of products of farms for
this year has been estimated by the
! department of agriculture at between
| $1,000 and $4,000 but as most agricul-
| tural products would find their way
! into manufactured products, they
would be exempt anyway under the
definition of the tax.
Provision is made for a like tax
upon similar imported commodities so
that there can be no discrimination
| against American products.
! Yield Approved
| "The yield of this tax has been care.
! fully estimated and approved by one
of the foremost economists in the
country, Professor Charles J. Bullock.
of Harvard, to produce during the
! calendar year 1922, $759.756.000. Con-
servatism has been exercised through
out this estimate The yield will un-
| doubtedly be close to 81 1000 900, 900
| but the figure given is more than
ample to provide the revenue which
will be lost by the repeals which |
propose.
| Il want to see real revision of our
tax laws and not the perpetuation in
times of peace of revenue laws which
were devised under the emergency of
war.
81 want to see return of prosperity
for the American people and believe
we can bring it through the enactment
of proper tax system.
Il believe that these amendments
will accomplish the desired results.