The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-16
TAX REVISION UNDER WAY.

! TAX REVISION UNDER WAY.
Following persistent urging on the
part of the president, the secretary CT
the treasury, the newspapers and the
public generally, the house ways and
means committee at last has taken up
| the task of framing new tax bill.
The tentative draft of the measure, it
is announced. will be along the lines
| laid down by Secretary Mellon. The
word tentative" probably is used ad-
visedly. It seems hardly possible that
the secretary's plan of tax bill ever
can be enacted into law.
Secretary Melons idea OF tax re-
form appears to include a reduction
of the higher schedules of the income
and profits taxes and a continuation
of the various levies now so burden
some and annoying to the average cit
izen, with increases and extensions
here and there. The congressman
who supports the secretary's recon-
mendations is certain to hear from his
constituents.
Probably there will be no serious
opposition to such lowering of profits
taxes and surfaces, as the interest of
business progress seems to demand
but at the same time the people want
relief from taxes on freight bills, rail-
road and theater tickets, so-called lux
uries and many other forms of taxa
ton that can be excused only on the
basis of the necessities incident to a
state of war.
If congress will properly adjust the
Income tax, remove the long list of
special war taxes and levy a tax on
sales it can meet the treasury require
ments and win popular approval at
the same time. No form of taxation
ever is popular but the sales tax gives
promise of being freer from objection
than any other form of taxation thst
could be devised. Among It's chief
merits are the ease with which It can
be collected and the fact that it falls
on all alike. Besides, it cannot be
evaded.
The ideal tax, in addition to being
equitably distributed so that it bears
upon everybody in precise proportion
to his ability to pay 1t, must be sim
pie in the manner of it's COM
putation and payment and eco
nominal in the cost of its &C
counting and collection. In the points
both of simplicity and economy the
sales tax has decided advantages over
any Of the other forms of taxation
now in effect.
The sales tax would involve no ex-
+r overhead avnausa IN apv b,,sioase
institution, however large or small; it
would make the checking up at Wash
ington a simple matter of addition
and percentage. Cheap clerks with
adding machines could make all the
computations necessary.
With the sales tax there is no need
fo- experts. either by the taxpayer or
There are no questions possible as to
allowable deductions or any of the
other abstruse and Understandable
questions that complicate the income
and excess profits tax calculations.
And with these eliminated, business
men could go on doing business with
the certainty that they would not,
two, three or a dozen years later, re-
ceive BIZ for back taxes because
somebody had decided that the law
had been incorrectly interpreted in a
given year and deductions then con-
sidered allowable were not actually so.
According to the annual report of
the commissioner of internal revenue,
the treasury this year expects to COL
lect more than $S5O.Oo0.OOO of back
taxes against business done in 1917
and 1918. The sales tax eliminates
such a possibility. There is no room
for doubt as to what constitutes a
sale. Every business man knows
what a sale is, and every business
man knows what his total sales are,
for the day, the week, the month and
the year.
The sales record is the principal
business record of every one, from the
largest corporation-down to the small
est individual dealer in trifles. And
the government would undoubtedly
require reports of sales to be made on
uniform forms, and there is nc reason
why these forms should not be sup
piled by the treasury to everyone, for
the purpose of keeping the daily rec
ord of sales.
Such an official record, filled out
daily and always open to the inspec-
ton OF revenue officers, would be sim
liar in form to the blank now provid-
ed by the government for reporting
monthly sales OF jewelry. works of art
and motion picture films.
The efforts of ]. H Mercer to bring
about a reduction in the prices