Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-06
SALES TAX INDORSED

WHILE Secretary Mellon was proposing
w an increase In letter postage and a
tax on automobiles and bank checks and
while Representative Mondell was saying
that Congress would not consent to such
taxes, the report Of the referendum OF the
United States Chamber of Commerce on
various proposed notifications of the rev.
enue laws was made public,
More than 500 organizations OF business
men in all parts of the country voted. They
cast ITO votes in favor of sales tax, an
overwhelming majority. When they were
asked to express their opinion as to the
form which the tax should take, 1142 votes
were cast in favor Of a turnover tax and
800 for tax on retail sales only. Be
tween tax on all turnovers aud n tax
on turnovers only of goods, wares and mer-
chandise the vote was S24 to 366 In favor
of tax on all turnovers
Before this disclosure of the sentiment
of the business organizations was made the
leaders Of Congress announced that they
would waste no time hearing arguments in
favor of sales tax of any kind. Whether
they will reconsider now remains to be
seen.
But Congress could raise revenue in no
way more easily and with less inconveni-
enoe to the people than by levying sales
tax. 1t has been estimated that tax
of 1 per cent would raise 81, 1,0OO, ,OOo,OOo.
with such tax the nuisance tnx on trans
portation and the tax on theatre tickets
could be abolished and the Government
would have a net revenue OF O,OOo,o ,ooo
more than It now receives.
The need of increased revenue, however,
Is not admitted by the country at large.
The war is over and 1t Is imperatlvely
necessary that we should return as quickly
as possible to the moderate expenditures
that prevailed in peace times. The Govern
ment is still engaged in an orgy Of spending
Secretary Mellon has told the Ways and
Means Committee that economies of $3.50
900, 900 can be made, but even thon the
annual budget would be in excess OF
81 900, 900 600 or four times as much ms
was annually spent In the years preceding
1917.
What the necessary expenditures will be
will not be known until Mr.. Dawes has
finished his work of preparing budget on
business basis. If he cannot cut several
hundred million dollars from the estimates
OF the department heads, then he is not
the kind Of man the country has been led
to think he is. To do this it will be ueces-
sary to abolish thousands of jobs and to
call q halt on many projects. But Mr..
do this And when he does it the tax
burdened people will back him up and ex-
pect their representatives in Washington to
follow his advice.
Secretary Melons estimate Of the ma
tional income for the current fiscal year
includes only 500 100000 interest on the
money we lent to the Allies. The interest
for the Year, however. amounts TO about
$3.50. 900. The Government, which bor-
rowcd the money from the American people,
is paying the interest to them and is taxing
them heavily TO do it. When that burden
is transferred to the real debtor-and It
ought to be transferred as quickly as pos
sbe-the taxpayers can be relieved and
many of the present irritating taxes can be
abolished.
Unless Congress does something to satisfy
tho pxpectation Of lower taxes 1t will have
to reckon with the voters in November OF
next year