The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-10-01
SmoOt Proposes No Change
in. Income and Tobacco
Assessment.
WOULD END WAR LEVIES
Eimmons Urges Restoration of
Income Surtax Rates
! Charges Discrimination.

presented to-day to the Senate, one
from the Republican side and one from
the Democratic side. Senator Smoot
Of Utah proposed:
A manufacturers sales tax of
per cent. on articles as finally fin
ished or produced for consumption
or use.
A repeal of all of the special war
taxes, of whatever nature, includ-
ing the excess profits and trans
portation levies.
Retention of the existing 10 per
cent income tax on corporations.
Senator Smoot proposed no change in
the committee plan with regard to In
dividual income taxes or the existing
tobacco, liquor and inheritance taxes.
Senator Simmons Of North Carolina
proposed:
A graduated income tax on COR
porations -anging from 121h to 25
percent. in lieu of the excess profits
tax.
Restoration of the income surtax
rates to a maximum of So per cent.
on incomes in excess of 100000.
Repeal of the transportation taxes
on freight, passenger and Pullman
accommodations.
Retention Of the corporation CAPT.
tai stock tax.
Repeal of the $4,000 exemption al
lowed corporations.
That individual exemptions be con-
fined to incomes below $4,000
Slight reductions in the normal
rates on incomes below $780,
Wants More Equality.
Senator Simmons tod the Senate that
II there could be an agreement for an
equitable readjustment of the taxes so
that the several groups of taxpayers
would be on a parity as proposed in the
Democratic programme, he personally
would be willing to give serious consid-
Grafton to manufacturers sale or con-
sumption tax. properly safeguarded, as
a substitute for all the miscellaneous
taxes imposed under the present law.
The North Carolina Senator appealed
TO the parties to get together in an effort
to work out a bill meeting the require
ments of the present situation and con-
ditions.
Senator Smoot, in presenting his
amendments, read a prepared statement
in which the sales tax proposal was sci
forth as follows:
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-
ton or use without further process
of manufacture. a tax equivalent to
3 per cent. of the price for which
such commodity is sold, leased or IL
censed; such tax to be paid by the
manufacturer or producer.
cit should be noted said Senator
Snoot that. as tie tax IL imposed
only when articles are sold fer consump-
ton or use without further process OF
manufacture, the tax will be non
cumulative in effect and will give the
integrated business no advantage over
the disintegrated business. There will
be but one tax. II commodity is sold
for consumption or use in a further
process of manufacture, no tax will he
imposed. For example, crude oil sold
for fuel would be taxable. but If sold
to a refinery for the making of gaso-
lene or like commod,t would not be
taxable.
Exempt Up to $4,000.
"In order TO avoid administrative diff
nculties with small sales tn chill pro-
less than $4,000 during one year. Thi
will exclude about l per cent. of tn
manufactured goods in the country, &C
cording to the census of manufacturers
It will practically exempt all the agri
cultural products, since the average
value OF products of farms for this yea
has been estimated by the Department
of Agricutur eat between $1,000 ant
$4,000. but as most agricultural prod
ucts would find their way into manu-
factured products they would be ex
empt any way under the definition o
the tax.
provision is made for like tax upoi
similar imported commodities, so tina
there can be no discrimination agains
American products.
THE yield Of this tax has been care
fully estimated and approved by one o
the foremost economists in the country
Prof Charles j. Bullock of Harvard. Il
produce during the calendar year 1872.
e75s,756.000. Conservatism has beer
exercised throughout this estimate. TIL
yield will undoubtedly be close &
$1,000. 900 600. but the figure given Il
moro than ample to provide the revenu
which will be lost by the repeats which
propose.
1T want to see real revision of our
times of peace of revenue laws which
were devised under the emergency o
war.
81 want to see a return Of prosperit,
Tor the American people and believe WI
can bring II through the enactment o.
q proper tax system.
II believe that these amendments will
accomplish the desired result and know
that the people throughout this country
are of similar belief from general ap.
prova1 which the plan mas received"
Poor Mnn Ignored, He Says.
Senator Simmons Offered the Demo.
cratic tax programm, to the Senate al
Che close Of n three hours address, ir
which he vigorously assailed the Senate
Finance Committee bill as one providing
Tor AK reductions "in behalf Of the cor.
~pprations anil the ultra rici.."
-'ruging the bill from tho begnnins
TO the end OF it." Ne said. there Is
hardly a tax that Is tcuchoc where tn,
little man is not forx,ttei end ignored
and his righlg tramplud upon while tn,
rich mans slightest whisper for relief Il
heard and the money 70 the people Law,
ishly rebated and RENTED 10 these mer
who have grown so mighty IN this coun.
try that they can fix the price of any
products when II Is ,'ne % their raw
materials, and then ~ thu price that
6hsil pay for the finished Product after