Omaha daily bee., 1921-05-25
Sales Tax
Plan To Be
Abandoned
Republican Leaders Fear Pas.
sage of Proposed Law
Would Spell Defeat for
Party.
Gompers Serves Warning
BY ARTHUR. SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.

By ARTHUR. SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.
Washington, May 24.-That the
imposition of a general sales tax
would be followed by indignation
meetings throughout the country
was the warning served on the SEN
ate finance committee today by SAM
uel Gompers. through Edward F.
McGrady, executive representative
of the American Federation of La
Dor.
With organized labor thus lined
up with the farmers in opposition to
sales tax, its proponents virtually
have abandoned hope of such legis-
lation by this congress. Numerous
republican leaders in both houses
have voiced the opinion openly that
a general consumption tax would
spell party defeat.
The senate committee is expected
to deliver an adverse verdict on the
proposition in resolutions which are
to be sent to the house committee on
ways and means for information as
to the attitude of the senate to be
taken into consideration in framing
tax legislation.
Labor Opposes Tax.
THE executive council of the
American Federation of Labor,
which has just concluded a confer
ence at Cincinnati, adopted strong
ocf col 40 H.
McGrady.
I'm addition to this protest of the
executive council, we have received
in our Office, thousands of letters of
protest from labor unions from every
section of our country. The Amer
ican Federation of Labor, therefore,
Is appealing to you in behalf of the
American worker.
Five millions are now idle and
other millions whose wages have
been reduced from Is to 90 per cent
are now to be called upon to assume
the added burden. Big business not
being satisfied in reducing the work
ers' standard of living is now at
tempting to shift the burden of war
and the cost OF government from
their shoulders onto the backs of
the working men and women of the
country.
Would Shift Burden.
To be sure, the automobile deal
ers, fur dealers, the diamond dealers
and other dealers in the luxuries of
: Fife want their taxes reduced and
in doing so they are willing to place
extra dues upon the necessities of
life such as food, fuel, clothing, etc.
at may require some time to
awaken the people to the issues, but
when you go down i'll the pockets
of those who have to count their pen
nies and extract therefrom further
tax upon things needed to sustain
life. there is bound to be a great
reaction. And we can promise you
that indignation meetings will be
held i'll every city, town and hamlet
OF this country
Urges Settlement Board.
Robert G. Wilson, chief of the
tax division of the American Mining
congress, said that he formerly had
been inclined to favor a sales tax,
but after a study of the situation
had decided that it is Objectionable.
He urged the establishment of fed
eral war tax settlement board and
ether measures to clean up the III
come and profits taxes for war years
still outstanding.
Considerably more than $1,000
100000 income and profits taxes,
long past due, remain uncollected,
he said. "A fraction of it never will
be collected under any circun-
stances. Unless radical steps ar. TAX
cn immediately, 20 per cent or more
never will be collected. A comrara-
lively neglible investment at the
present should actually save the gov
ernment $250000,000 and bring in
more than $l000,0O0,0OO additional
during the next two years.
The saving in interest alone would
prove a highly successful return
upon the investment. The total saw
ing. including the salvage of taxes
that are being lost III the mazes OF
computation ;,ad collection difficult
ties, sholid make the investment the
most profitable in the world.
"Ihe invested capita. OF $4,000
corporations remains to be deter
mined for the year 1917 alone. For
Ne year 1918, only 90 per cent cf
all tax returns, both personal and
corporate, have been investigated
and for the year 1919, only 10 to IS
per cent"