The Washington herald., 1921-05-25
LABOR THREATENS
PROTEST MEETING
AGAINST SALE TAX
People Will Not Permit
Change, Says Ameri-
can Federation.
WARNS POLITICIANS
Mining Congress Also Submits
Protest and Suggests
New Method.

The American Federation of La
bor will hold indignation meetings
in every city. town and hamlet in
the country il congress enacts.
eaneraI sales tax law, the senate
finance committee was told yester-
day. The federation's spokesman
was Edward F. McGrady, national
legislative representative. who ap-
pered for President Samuel Com
pers and the federation's executive
council.
Not only are the working men
opposed to such tax, but the
housewives, "who will pass the final
verdict on the tax" are against
it, said Mr.. McGrady. ut may re-
ouire some time to awaken the
people to issues. but when you GO
down in the pockets of those who
have to count their pennies and
extract therefrom further tax
upon things needed to sustain life,
there will come an uproar so loud
and of such proportions that the
men who think of voting for such
unfair taxation would do we'll to
hesitate" declared Mr.. McGrady.
Says Tax Is shifted.
Five millions of the now idle
and many other millions whose
wages have been reduced from "a
to so per cent are now to be called
upon to assume the added tax bur-
den, IL this tax is imposed. said
Mr.. McGrady. Big business" not
being satisfied with reducing the
workers standard of living. Is now
attempting to shift the burden OF
war and the cost of government
from its shoulders onto the backs
of the working men and womer
of the country"
Mr.. McGrady quoted Otto H. Kahn
the New York fnancier, as saying
that Taxing a poor mans break
fast table is a formidable Sogar
to run up against Mr.. McGrady
declared that sales tax was moi
only a tax on the breakfast table
but on the supper table and the
dinner pail. "The full dinner pal
has elected many men to public
ONCE, but what will happen to the
man or party, who places a ta,
upon the contents of a half filled
pail?" he asked.
Submits New Plan.
Robert G. Wilson, chief of tn,
tax division of the American Min
ing congress, presented a plan Of
that congress which 1t was claimed
would get sufficient revenue with.
out additional taxation. Two rem.
edies were suggested. First: Pres.
idential appointment of a fedora
war tax settlement board with au.
thority not only to settle tax cases
consequent upon the wartime pc.
riod, but with power to compro.
mise disputes that appear hopeles:
of interpretative application of tn,
law; second. additional men anc
other means for the income ia,
division of the internal revenue bu.
reau to function effectively. Ref,
ormation of the bureau would ad.
nit of quick collection of more
than $1,000, 100000 of back ia,
claims. the committee was told. I'm.
less radical steps are taken, many
of these claims will never be col.
lected. Mr.. Wilson declared.
Personally, Mr.. Wilson opposed
substituting sales tax for tn,
excess profits tax. This cannot b,
honestly urged by capital, he de
clared. 1t would be political sui
eide. he intimated to remove tn,
existing excise taxes upon the lux
uries of the rich man and trans
pose them to the dinner pail-a ia,
on the diamond shirt-stud and ontc
the bone collar button. The rea
solution OF the federal tax prob
lem is lower taxes, not jugglinis
of taxes. If the wartime rate,
can be made to yield all they SHOULD
and congress has the opportunit,
and the power, genuine relief il
in prospectS' Mr.. Wilson concluded
A delegation from the Nationa
Confectioners' association asked tn,
committee to repeal the per cen
special tax on. candy.