The Washington herald., 1921-07-27
SALESTAXFAVORED
SHOWNBYCHAMBER
OF COMMERCE VOTE
Recommends General
Turnover Tax on Busi-
ness Transactions.
OPPOSE INCOME TAX
t142 Votes Favor Tax on
Turnoyers to 395 on Re-
tail Sales.
OPPOSE INCOME TAX

Ney 10 tne ways and Means Com
mittee Of the House of Representa-
tfves. which began hearings on rev.
enus legislation.
The committee was informed in
a communication that the chamber
advocates this form of sales tax
as q part OF general tax program,
which IL Is advancing as the result
OF nnal referendum vote Just COM
pieted among the commrrcI,Il and
industrial organizations within its
men5s-ship. This rafersn.lum :s The
second taken on taxation within six
months
Suggested Program.
The program which the chamber
suggests to Congress Is as follows:
Repeal OF excess profits taxes
Repeal of war excise taxes, both
those on transportation and COM
munication. and those levied in re-
latfon to particular businesses.
A tax on all turnovers to bring
In such revenues lost through these
repeals as the governments neces-
stiles require.
Decentralization of administration
OF income taxation.
Ascertainment by the government
OF any tax based on income before
payment
A court or courts of tax appeals
20 be entirely separate and inde-
pendent of the Treasury Depart
ment
Net losses and inventory losses
In any taxable year to cause rederer-
nfnation Of taxation on income of
the previous year.
An exchange of property of a like
or similar nature. to be considereo
merely as a replacement.
Gains realized from the sale of
capital assets to be subject to lower
rates than income received from
business or other current activities.
Income from any new issues of
securities, which lawfully may be
made subject to Federal e.x. to be
taxable
Exemption OF American citizens
aboard from the American tax upon
income derived abroad and not re-
mitted to the United States.
sf Would End War Excises-
More than 500 business organiza-
tions voted in the referendum just
completed. A preliminary canvass
shows that the most general de-
mand. after a virtually unanimous
demand IN the previous referendum
for repeal of the excess profits tax.
IS, for repeal OF the taxes on freight
and express charges, passenger fares
and Pullman charges. and messages
II. g. for an end to the war excise
taxes on transportation and COM
municatiOn- For repeal of these
excise taxes there were 1,443 votes
TO. go votes against
The various organizations are
entitled to from one to ten votes.
based on :heir member dip strength.
-The next largest vote Is for e
peal of war excise taxes levied in
connection with pI"t:cular business
es-L e. ranging from automobiles
and their accessories, through theatcr
tickets. beverages, candy. jewelry,
insurance. wearing apparel. mus1-
cal instruments, etc, to chewing
gr1.
Produces Bullion Dollars
The excess profits tax and the
excise taxes, the removal of which
tie chamber urges have been estI-
mated to produce more than $1,000
OQ0,aoO. in revenue. So far
s1the governments necessities re-
ddffe a replacement of the revenue
tost through these repeals the vot-
fDgs which has just closed means
that the chamber would have Com
gress use a tax on all turnovers.
In voting for such a tax the cham
ber's members had an opportunity
To vote for an increase in the in
come tax on corporations. The re-
suit of the balloting shows that
they decisively preferred the gene
raj turnover tax.
The referendum which has jusr
closed was in effect supplemental to
the referendum taken in the winter
on taxation. The earlier referen-
dunn was important in fixing the
chambers position upon many ques-
tions but II did not produce a de-
finite result with respect to sales
taxes. A conclusion to discussion
among the chambers membership
on sales taxes has now been reach
ed.-with an unmistakable declara-
tion for a sales tax and with de-
signation of the general turnover
tax as the type that is widely
favored.
Ia Prefer Sales Tax.
On the issue between an increase
in the income tax for corporations
and a sales tax, to take the place
of the excess-proflts tax. the vot-
ing was clear-cut in it's Indication
of the point OF view that prevails
among the member organizations.
Eleven hundred and seventy votes
were cast for the sales tax, to 1OS
for an increase in corporate income
tax Technically all Of these votes
cannot be counted in the official
canvass but their effect is not lost
since they were correctly cast upon
the questions which followed and
which determined the Chambers
position.
On the form a sales tax should
take, 1,142 votes were cast in favor
of tax on turnovers to 395 for a
tax on retail sales. On the ques-
ton as to which of two forms Of
turnover tax should be used. there
were s24 votes for a tax on all
turnovers, to 3ss for a tax on turn
overs only of goods. wares, and
merchandise.
= In two respects the chambers
present program differs from the
position It originally took saws a
statement issued by the chamber
Yesterday. In the referendum of
last winter. there were 1.2I7 votes
cast In favor of excise taxes upon
some articles Of wide use but not
Of the first necessity. and 50a
against. There were later some sur-
gestions that a number of oreani-
zations had erred in marking their
ballots. with a result that they were
recorded IN favor when they were
NA