The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-03-21
SENTIMENT GROWS
FOR SALES TAX IN
NEW REVENUE LAW
SmOot and Watson IndOrse
Plan, Though Differing
on Methods.
FARMERS WON OVER
People Generally Are Being
Converted to Scheme. Is
Result of Inquiry.
WOULD CUT U. s. EXPENSES
Cost Of Collection Would Be
Lowest Of All Taxes on
Federal Statutes.
WOULD CUT U. S. EXPENSES
Special Despatch to THE NEW YORK HERALD
New York Herald Bureau,
Washington, ID. c., March go.

Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington, ID. c., March 70.
There is a growing opinion in Con
Eress that tax on sales will be one OF
the features of the law to be passed by
the special session for revision of the
revenue system. That is the belief of
Senator Smoot (Utah), who has prac-
tically completed draft of such a tax
for presentation early in the April meet
ing. Senator Watson Und.) Is also
impressed with the soundness of tax
on sales. although he differs as to the
method by which 1t should be imposed.
There is found to be more objection to
the so-called turn over" sales tax,
which would collect portion OF the
revenue each time an article changes
hands on it's way from the producer to
the consumer. than there is on a sys-
tenn which would apply the tax but
once.
In anticipation of early revenue re-
vision many organizations throughout
the country now are advocating the
sales tax.
A good many organizations Of farm
ers. which have been unfriendly to the
sales tax In former agitations of tax
laws. now have adopted the view that 1t
y a fair and equitable system compared
with most of the other policies sug
gested.
"A sales tax is not free from difficult
ties" said Senator Watson to-day. Il
notice that THE New YORK HERALD has
said editorially that such tax ought to
be imposed, and / am glad for that com
mendation. The difficulties it involves
are not so great or SO embarrassing &c
the taxpayers as those inevitably con-
nected with the present system of taxa
ton.
I'VE want to have taxes that will
bring least disturbance to business ano
industry. and l am convinced sales
tax is the best to adopt"
Senator Watson Is to confer with Sen.
ator Penrose at an early date on the
question of the sales tax and other suG
gested forms OF meeting the revenue
needs.
II believe to-day that over half the
American pople are converted to a sales
tax, which is a remarkable change in
the sentiment which existed three years
ago when it was being seriously pre-
posed" said Mr.. Smoot to-day. u have
here (pointing to stack Of papers anc
clippings on his desk) a mass of reso
buttons and articles favorable TO this
tax, which prove that great majors: }
OF the business interests would welcome
IT,
we can make the administration
features so simple that the cost OF col
lection will be almost nil. If you war
10 tax wholesalers and manufacturers or
sa les, for instance, they can make monthly
reports and the Government will know
exactly what they receive monthly. JUS
as a bank knows. It Is just, equable
and with the lowest cost of collection o.
any tax that can be imposed on thu
American people"
AS a sample OF some OF the communi
cations he received regarding the sale!
tax. Senator Smoot referred to the fol
lowing quotation from one letter: "On'
wear more Of the present tax will turf
every small manufacturer into an auditor
or a lawyer. / know some small manu-
facturers who have totally abandoned
the operation of their business and are
giving their entire time the problem q
their taxation. Their energies are en-
tirely diverted from construction
America is paying price for this, fol
such corporations have been the grea
bulk OF American commerce. The vast,
of energy is perfectly enormous and !
showing in the commercial depression
now existing throughout the country