The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-04-02
SALES TAXES FIRST
\ TO BE CONSIDERED
Work on Revenue Revision
Will Begin Early in the
Extra Session.
Special Despatch to THE New YORK HERALD.
New York Fernld Bureau.

Special Despatch to THE New YORK HERALD.
New York TernId Bureau.
Washington, ID. c., April 1.
Proposed taxes on sales to take tho
place Of the almost certain repeal OF the
ject of hearings in revenue revision to
be held by the Senate Finance Commit
tee. it was announced to-day by Senator
Penrose (Pa.), chairman. The date OF
the hearings has not been fixed. but will
be early in the extra session.
Meanwhile one of ,he plans mos. dis
cussed in the House is the proposal Of
fered by Representative Longworth
(ohio) of the Ways and Means Com
mittee. His bill for revision has re-
ceived support because OF its simplicity.
but it does not include the sales tax.
Mr.. Longworth. however is not opposed
to inclusion of this levy In the new bill
If it is acceptable to the majority of the
House..
Senator Penrose expressed the hope
that additional taxes to take the place
of excess profits taxes may not BE- re-
quired.
Il am disposed to think" he said,
that investigation may disclose the fact
that we can get along with compara-
lively few additional taxes"
Senator Penrose stated that Senator
Lodge has Endorsed the proposal to
couple anti-dumplng legislation and
American valuation of foreign imports
fay La tell =.
Senate. 1t is considered that this COM
bination will gain votes for the emer-
gency tariff bill in the Senate that other
wise would be lost since 1t would insure
some protection on manufactures not
now included in the proposed emergency
tariff, which is confined to agricultural
and allied products.
Although at present there is said to
be hostility in the House toward a
sales tax, 1t is known that the idea Is
gaining favor because 1t provides an
easy way of raising q large amount of
| money. Many members would vote for
It IL 1t were accompanied with a CORE
| spending decrease in the taxes that the
average man" must pay, which could
be accomplished by reducing the normal
| income tax rates or increasing the ex-
emptions.
There is considerable talk of making
revenue suggestions OF Mr.. Longworth
and Representative Bacharach IN. -
the basis of the work of revision in the
! House Ways and Means Committee. The
leading feature of Mr.. Bacharach's plan
| is the sales tax. He believes few other
taxes are necessary if the sales taxes
are enacted upon the repeal of present
! levies which are most Objectionable.
Mr.. Longworth's plan calls for the
repeal of taxes amounting to $500, 000.-
| 600. He would eliminate the excess
profits. transportation and soft drink
taxes and cut the present high surtaxes
from 7S to 40 per cent This loss would
be made UP by higher tariff duties. which
he belives can be made to yield $780,
| 100000 additional. and by placing an
additional tax of per cent. on corpora
tons. This latter levy would yield from
$3.50, 100000 to s500,00O,000 Treasury
experts have estimated.
The majority of the House at least
favors repeating the taxes he named and
It is virtually certain that these will be
eliminated by Congress. His additional
corporation tax also seems to meet with
general favor. but some members are
doubtful whether tariff rates can be
raised so that an additional $3.50. 1000. 900
will be brought into the Treasury.