Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-02-27
U.S.C.of C..
MenOppose
Profits Tax
Levy Retards Progress of Re.
adjustment, Verdict Express
cd by Organized Business
in National Poll.
Don't Agree onSubstitute

don t Agree onSubshtute
By ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bee Leased Wire.
Washington. Feb. 2o,--Organized
business, as represented by nearly
1000 association i'll the Chamber of
Commerce of the United States, over
whelmingly favors repeal Of the cx-
cess profits tax, but is unable to @grce
on substitute therefor
In a referendum. the results OF
which value made public by the
J.. chamber today, the organization re-
lJcctcd sales tax, increase of in
'comc taNcs and tax Oh undistrib
uted earnings, and approved only al
excise taX, which would not produce
sufficient revenue as substitute for
the excess profits tax.
Against Profits Tax.
In the chambers referendum sys-
tcm a two-thirdS vote IS. necessary
to carry. The propositions rubmit-
ted and the vote OF the organizations
on each follow:
Il. The excess profits lax should
he repealed For, l,7lS; against, A.
Carried.
-. Revenues row derived from
the excess profits tan should be OBJ
tanned mainly from taNes or incomes.
For, 81; again,;, l,e04. Not carried.
On Articles of Wide Use.
"}. There should be excise taxes
upon some articles OF wide use, but
not OF first necessity. For, l,2l7:
against. 504 Carried.
r. Should sales tax be levied III
stead OF the taxes mentioned i'll
propositions and 5: For, 704;
against, S55. Not carried.
5. Should sales tax be levied
in addition to such taxes as arc men
toned III propositions : and ): For,
los. against. S94. Not carried
%. Members voting in ~ OF
question { or question 5 are '>lcd
TO indicate the type OF sale, ,,, 'hcy
advocate
"a A general turnover taN. FOR,
5li 1a
-, 2bl \ limited 81, 'prqeyas tax Fsr
"tc) a retail sales tax, For al.
Z There should be a moderate
and graduated undistributed earn
mgs tax on corporations. For, o4O;
against. 1908. Not carried
Personal Normal Taxes.
"S. Each individual stockholder OF
a corporation should pay his own
normal tax. For, o9S; against, 975.
Not carried
20. Income from any new issues OF
securities which may lawfully be
made subject to federal tax should
be taxable. For, $3.50; against, 275.
Carried.
40 American citizens resident
abroad should be exempt from the
American tax upon incomes derived
abroad and not rcmitted TO the
United States. For, l,252; against,
+56. Carried.
On Capital Assets.
IN. Profits arising from sales OF
capital assets should be allocated
over, the period in which earned and
taxed at the rates for the several
wears in the period. For, l,4ll;
against. 245, Carried.
~. An exchange of property OF
ike or similar nature should be con-
sidered merely as replacement
For, l.547; against, l42 Carried.
''l5. Net losses and inventory
losses in any taxable year should
cause.r e.redetermination of taxes on in
conc OF the preceding year. For,
$50, against. 52S. Carried.
~. Ascertainment by the govern
ment of any tax based on income
should precede payment. For, l,2l5;
against. 40. Carried.
as. Administration of income tax
alton should be decentralized. For,
l,52I; against, 500. Carried.
Retards Readjustment.
The vote makes it clear that bust
ness men are united in their view
that the excess profits tax hampers
business operations and retards the
progress OF readjustment,". says the
chamber. Among the objections to
the tax as pointed out by the COM
nttec arc that it produces mequi-
ties. that it is difficult OF admlnistrra-
ton. that price reductions will de-
crease revenues from this source and
that the tax encourages extrava-
gance.
~ striking reaction was shown in
the vote against increasing income
taxes. 1t was obvious to the voters
that such increases would fall on the
middle class of incomes; since little
more can be derived from smaller
incomes and because taxes already
are so high on the larger incomes
that those receiving large incomes
arc investing in tax free securities
and thus defeating the purpose OF
rho tax"