Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-09
TAX CHANGE ASKED
BY DRY GOODS MEN
National Association Offers
Federal Revision Scheme to
House Committee.

A comprehensive program for re-
vision of the federal tax laws, esti-
mated to yield annually the $4,000
100000 which Secretary Houston has
said the Treasury requires. was filed
yesterday with the house ways and
means committee by the tax committee
of the National Retail Dry Goods Asso-
citation.
The plan worked out by the trade
organization contains several pro-
posals not heretofore advanced, in
Guiding the assessment of a federal
poll tax of IS on each person over
twenty-one years old who receives
an independent income. Income tax
exemptions, it is proposed. would be
rie6 persons, and $4,000 to $4,000 for
heads of families. All business would
be allowed an exemption of $4,000.
Other Features.
Other features carried in the pro-
gram, which was approved through a
referendum Of the organizations 1000
members, provide that:
muses. and commissions should not be
taxed at SO high rate as income
from business and investments.
Income derived from business,
whether individual, partnership or
corporate, should be taxed on the
business itself, and be subject to no
additional tax when distributed to
partners or stockholders.
All other incomes, including profit
from the sales OF capital assets.
should be taxed at a higher rate than
income from business and in a still
higher degree than income from mu-
tual or mental efforts.
There should be a tax on gross sales
of all goods sufficient when added to
all other taxes proposed in the pro-
gram and including customs receipts.
to aggregate the required $4.-
900. 900.
The program would eliminate from
the present revenue act the excess
profits tax, surtaxes on individuals
| taxes on transportation. insurance
| admissions, dues and on non alcoholic
beverages and special and capital
| stock taxes, stamp taxes and certain
| excise taxes.
Normal Income Tax Rate.
The normal income tax rate would
| be fixed at 4 per cent on the first
$4,000 above the exemption. while the
remainder would be subjected to a
| 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, a statement by the
Il
| distinction has been made in their
program between manual or mental
(! efforts and the results of business in
| vestmentS, the latter being required
| to bear the heavier burden.
| All other incomes, including "un
earned" or investment income ant
profits, would bear surtaxes ranging
from per cent on incomes from $20,'
900 to $4,000 to per cent on in
comes in excess of 100000.
Estimates compiled by, the associa
ton committee placed the revenue
from the IS poll tax at $S0,00o,000 an
nually. From income taxes of al
kinds proposed in the plan it was es
timated the revenue production would
be approximately 1898. 100000. Gus
toms receipts were placed at $3.50,
100000 and the sales tax which thu
organization proposed with rate o
1 per cent would yield $1.S16.5oo,000.
Based ON Present Tariff.
Customs receipts, however, wer
calculated on the basis of the presen
revenue act and did not take into con
lsideration the contemplated change
now being worked out by the Hous
ways and means committee.
Likewise the estimate of collection
from the sales tax was said by tn
association representatives ito b.
very conservative" and they predicte,
that one-half Of 1 per cent may b.
ample to raise the revenue needed II
complete the 81. 900. 100000 budget.