The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-01-08
new INCOME
TAxSCHEME
SUBMITTED
National Drygoods .Asso.
citation Offers Program
for Revision.

Washington, Jan. S.-(Associated
Press.)-A comprehensive program
for revision OF the federal tax laws,
estimated to yield annually the $4,-
600. 100000 which Secretary Hous-
ton has said the treasury required,
was filed today with the house
ways and means committee by the
tax committee of the National Dry
goods associa .ion.- The plan work
ed out by the trade organization
contains several proposals not
heretofore advanced, including the
assessment Of q federal poll of IS
on each person. over Fl years old
who receives an Independent in
come.
Income tax exemptions, it is pro-
posed would be raised at from
81, 900 to $500 for unmarried per.
sons, and all from $1,000 to $5.00U
for heads Of families. All business
would be allowed an, exemption Of
$1,000.
O~her features carried in the pro-
gram, which was approved through
a referendum Of the organizations s
1000 members, provide that:
Income from salaries, wages, bo-
muses. and commissions should not
be taxed at SO high a rate as in
come from business and invest
ments.
Income derived from business,
wherever individual, partnership or
corporate, should be laid upon bus
mess itself and be subject to no
additional tax when desired to
partners or stockholders.
All other incomes, including
profit from the sales of capital as
sets, should be taxed at q higher
rate than income from business
and. In . still higher degree than
sincome from manual or mental ef-
forts.
Tax on Gross Sales.
There should be a tax on gross
sales Of all goods sufficient when
added to all other taxes proposed
in the program and including Gus
tom rates to aggregate the required
81, 900 ZOO, 900.
The program would eliminate
from the present revenue act the
excess profits tax, surtaxes on in
dividuals, taxes on transportation
insurance, admissions, due and non
slcoholie beverages and special
and capital stock taxes, stamp
taxes and certain excise taxes.
The normal income rate would
be fixed at 4 per cent on the first
1000 above the exemption, while
the remainder would be subjected tc
tax Of s per cent and no surtaxes
would be levied.
Income from business institutions
would be taxed at 10 per cent on
amounts above the exemption. In
this connection q statement by the
association officials explained that
a distinction has been made in
their program between manual OF
mental efforts and the results 0l
business investments. the latter be.
ing required to bear the heavier
burden.
All other incomes, including "un.
earned" or investment incomes and
profits. would bear surtaxes rang
/ ing from / per cent on incomes
from $4,000 to $4,000. to 6 pei
cen. on incomes in excess Of $780,.
600. Estimates compiled by tht
association committee placed thu
revenue from the IS poll tax q
$50, ,00O. 900 annually. From income
taxes of all kinds proposed in thu
plan 1t was estimated the revenue
production would be approximately
81 1928, 900, 900. Customs receipt.
were placed at $3e0.0 900. ant
the sales tax, which the organixa
tion proposed, with . rate Of l pei
cent would yield $1.S16.500.0o
Customs receipts, however, wef'
calculated on the basis Of the pres
ent revenue act, and did not tax,
into consideration the contemplat
ed changes now being worked on
by the house ways and means com
mittee.
| Likewise the estimate Of collec
tions from the sales tax was sait
by the association representative
ito be very conservative" and the.
predicted than one-half Of l Pc
cent may be ample to raise tn
revenue needed to complete the -,
900 ,000, 900 budget.