Evening star., 1921-10-09
BY G. GOULD LINCOLN.

few weeks ago was pro-
nounced dead and only await
ing burial, has shown remark
BILE signs of life recently. 1T was
asserted confidently that Congress
you'd have none of it in the revision
Il the tax system of the country now
lnder way. 1t may be that the ef-
ort to have a sales tax adopted Will
all, but at least the plan is to have
try-out in the Senate within the
lext two weeks. That the plan has
tained amazingly in strength is due
% a rather remarkable campaign con-
(ucted almost singlehanded by Sen
tor Reed Smoot of Utah, republican
nember of the finance committee.
The sales tax plan, it is true, has
keen considerably modified. Origin
lily a sales tax was turnover
ax-the levy was to be imposed upon
VERY sale Of an article. But the
present Smoot plan is more properly
|alled a manufacturers and produc-
RS tax. 1t is to be levied upon every
commodity manufactured or produced
when sold. leased or licensed for con-
umption or use without further proc
IS of manufacture. Further. it is to
(e levied upon every commodity
Manufactured or produced in for
(ign country when imported into the
United States for consumption or use
Without further process of manufac-
ure. The tax proposed by Senator
bmoot is per cent for which the
commodity is sold, leased or licensed
when manufactured in this country,
Ind per cent on the value at the
port of entry when imported into this
Fountry.
Tax Levied Only Once.
The tax is to be levied just once
when the article Is sold for consump-
ion or use without further manufac-
uring process. For instance. the pro-
ucer of cotton in the south will sell
lis raw cotton without paying any
ak; it will be made into yarn. ETC.,
md still will pay no tax: it will be
made into cotton cloth and still pay
10 tax, unless it is to be used as
3uch. But when the cotton cloth Is
Manufactured into clothing, and the
lothing is sold by the manufacturer,
he tax will be levied.
Take another case: A farmer. pro-
1uces wheat. He pays no tax when
e sells his grain to the mill. but the
hitler, when he grinds the wheat
nto flour and sells 1t to wholesale
krocer, will pay the tax-but II he
sells it to a baker the miller will not
bay the tax, but the baker will pay
! he tax on the bread he produces Tor
he consumption of his customers
Another farmer produces potatoes. He
will pay the tax on the potatoes ne
+ ellis to the grocer. sincef potatoes
Ire used as such by the consumer.
Right here it may be said that the
american farmer in the great major
ty will not have to pay the tax, be-
kause there is an exemption of $6,o0o
worth of business before this manu-
facturers and producers tax is to be
evied. The average production of
he farmer in this country is valued
bv the census bureau at between
] / 900 and $4,000.
What Tax Will Yield.
The manufacturers and producers
ak. it is estimated by the experts.
will produce s75s,756.O0o revenue.
This is said to be very conservative
Estimate. If, however, it should fall
short of this amount, or raise more
han is needed, by simply changing
! he percentage of the tax from per
lent to 4, or from per cent to 2, this
AN be remedied. The simplicity OF
he system proposed is declared by
is supporters to be one OF the vital
easons for it's adoption. There Is
|,o doubt that the country Will re-
Iuire an enormous governmental
+eyenue for many years to come, to
meet the war debt and to keep the
machinery Of government running
properly But by the adoption of the
manufacturers tax it will be pos
$ible to do away with many of the
present war taxes, many of them
yexatious and burdensome, many of
hem intricate and very difficult to
tollect.
For example, it is proposed to do
way with the excess profits tax,
which has been declared to be a
treat impediment to business and
which has been pyramided until
he burden of taxation upon the con-
i'm q
heavier than it should be. Under the
manufacturers tax plan, the tax will
Be paid once. The people will know
What the tax is, and it will not be
1ossible for the tax to be added again
nd again, as under the excess profits
AK plan.
.Nuisnnce, Taxes Repealed.
TRANSPORTATION and insurance taxes
will be repealed. The beverage taxes
taxes on all kinds of soft drinks
will be repealed. Taxes on admis-
ions to theaters and the movies,
ircuses, base ball games, ETC.. will gp
" the board, and so will taxes on
lub dues, the luxury taxes, under
which the people pay taxes If they
purchase wearing apparel valued at
more than the amount set down by
aw as covering necessities. Stamp
axes, capital stock taxes, taxes on
kilograms, ice cream, cosmetics, ETC..
evied under the existing law will all
e wiped out.
Senator Smoot's substitute plan
ontemplates the imposition of the
lew manufacturers and producers
ak, the income tax, the inheritance
AK, the corporation tax at 10 per
ant tho proSapt fayoS IN tobacco