The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1921-09-30
Small Production, To the
Amount of $4,000 a
Year, Would Be Ex-
empt Under Measure
Which Is Estimated To
Yield Nearly a Billion
Dollars a Year

Washington. Sept 80 A manufac-e
turers sales tax of three per cent 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 va
riouS war taxes, excise taxes, luxury
taxes, stamp taxes, telegraph and in
surance taxes, taxes ON soft drinks,
ice cream, cosmetics admissions and
dues and all the other "fifty-seven va
reties" of obnoxious and discrimina-
tory forms of taxation" which would
be repealed on next January l under
a series of amendments TO the rev
enue revision bill offered by the Sen
atur. Repeal of the excess profits tax
as of last January instead of on next
January 1. as planned by both the
house and the senate finance commit
tee also was proposed by Senator
Smoot. Under his amendments the
corporation income tax would remain
at 10 per cent but there would be no
change in the present tobacco. liquor
and inheritance taxes ~
The sales tax amendments read
That i'll addition to all other taxes
there shall be levied. assessed. col
lrcted and paid upon every commodity
manufactured or produced when sold,
leased or licensed for consumption or
use without further process tax
equivalent to three per cent of the
price for which the commodity is sold,
leased or licensed. such tax to be paid
by the manufacturer or producer -"
1t shou'd be noted said Senator
SmOct that as the tax is imposed
Gully when the article is sold for ~cortz
sumption or use without further pro
cess OF manufacture that the tax will
be non commulative in effect and will
give the integrated business no ad-
vantage over the disintegrated bus
iress. There will lie but one tax. If
a commodity is sold for consumption
or use in further process of manu-
facture no tax will be imposed For
example crude oil sold for fuel
would be taxable. but is sold to a re-
fnery for the making of gasoline or
ike commodities would not be tax
able
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 would exclude about one per
cent of the manufactured goods in the
country. according to the census of
manufactures. 1t will practically
exempt all the agricultural products
since the average value of products
of farms for this year has been esti-
mated by the department of agricul-
ture at between 81 900 and $4,000 but
as most agricultural products would
find their way into manufactured pro-
ducts. they would be exempt anyway
under the definition of the tax.
Provision is made for like tax
upon similar imported commodities
so that there can be no discrimina
ton against American products.
The yield of this tax has been
carefully estimated and approved by
one of the foremost economists in the
country. Prof Charles Bullock, of
Harvard. to produce during the calen-
dar year 1922, 1853 900 Conser-
vatism has been exercised throughout
the estimate. The yield will un-
doubtedly be close to $1.000,000,0 900,
hut the figure given is more than am
Pile to provide the revenue which will
be lost by the repeals which pro-
pose"