Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-10-11
SALES TAX PLAN
URGED BY SMOOT
Utah Senator'S Proposal Fa-
Vored by Manufacturers,
He Asserts
OBJECTIONS WITHOUT BASIS
By the Associated Press

by the Associated Press
Washington. Oct. 1.-THE sales tax
is bound 70 come, the Senate wns told
today by Senator Smoot, Of Utah, au-
thor Of a manufactured sales tax plan
which hN urged as substitute for the
excess profits tax ana the various mis-
CcllaneOus ,Cvies now in force.
"Therc is no real, fundamental OBJ
ieCrion to SHlCS tnX. the Senator de-
clarcd. ''lt IS a 'noN-aS-rOu- 60 prop
osition, and for that reason favored /
manufacturers, though they may nay
moro taxes than under an income and
excess profits system. But thev will
know 20 certainty just what the tax
is they will pay it out of current re-
ceints II cen be Immediately charged
into costs AZ definite amount and
without the imitation which has existed
under the excess profits tax, and all
taxes are charged into costs. just ne
rent, wages, materials purchased, In
t"r"St and all other expenses.
Constant Flow Of Revenue
Every ynr to whom it applied would
b" able to ascertain the amount Of his
liability n, glance, and the process Of
working OYt a tax return would lose
all itS terrors. 1t will give the Treas
ury Department q constant inflow OF
revenue during monthly periods. Cur
rent expenses can be met out Of current
receipts to that extent. 1t amounts TO
an adjusting Of taxes to business In.
stead Of trying 10 compel business to
adjust itself to taxes.
Replying to arguments that the pro-
posed tax was impossible of admins
tration, Senator Smoot said this was
not a fact that manufacturers taxes
were being collected under the present
tax law and that collections could bc
made in the same manner under his
proposal. He read a letter from AS
sistant Internal Revenue Commissioner
Smith, who stated that In his opinion.
the manufactures sales tax would be no
moro diffjcTit of administration thnn the
sales tax imposed by the 1917 aud 1918
laws.
''Tnder the present law" the speaker
Said. we nave raised during the fiscal
year just passed close to one billion dol.
lars through various forms of sales
taxes and special taxes which have been
passed on 70 the consumer, of which
about two hundred million dollars has
been upon sales by manufacturers. In
other words. we have collected during
the fiscal year just passed under n
manufacturers sales tax an amount If
money greater than was obtained in
the year 1915 through the income tax
on corporations.
Opposes Higher Corporation Tax
The Utah Senator opposed the pro-
posed D per cent increase in the cor
pOratiOn income tax and high surtax
rates, declaring that the latter were
keeping rev enucS from the Government
through the evasion of taxes by men OF
large incomes.
division of property and investment
in tax exempt securities" he continued,
have been generally used as the means
Of avoiding high taxes. The greater
the wealth. the greater Will be the saw
ings. The present law merely invites
persons to determine their own taxes,
The ignorant arr caught but once only.
They learn the method by experience.
Our present income tax system ie
really taxing the individuals who are
actively engaged in business. while il
forces out of taxation the individuals
having great wealth.