Evening star., 1921-01-26
PLANT ON DELAYS
! IN TAX REPAYMENT
Speed Urged in Stock Divi-
dend Refunds-Urge for
. Sales Levy.

Corporations and individual max
ing payments Of income taxes under
the regulations prior to the supreme
Court ruling in the matter of stock
dividends and having credits due as a
result of paying taxes on stock diVi-
dends are making complaints anent
the slowuess of the claims bureau of
the internal revenue bureau in max
ing adjustments in final settlement OF
these cases
At the time of the Supreme Court
decision it was stated that credit
might he claimed in the payment of
-axes for 1918 and taken by those
who had wronefully been assessed
for dividends paid and many corpora
tions and individuals took advantage
Of the ruling and sent in credit claims.
dedncting from income taxes
Under the law tax collectors are
bound to make full collections and
nave no authority to grant rebates
nr credits on claims that have not
been proved up and passed upon
fayorabiy by the claims bureau AS
:. result all credits taken on ac-
count of taNas paid on stock dividends
have been refused and taxpayers have
been called upon to take up their credit
slips in cash and bide the time Of the
claims bureau.
In the aggregate these claims are
very large and important and delay
in making settlements therefor keeps
cash.
1t was claimed at the time that
the refund on account of stock
dividend tax payments would run into
he millions. in some cases estimates
into hundreds of millions. Probably
some part of these claims nave been
:,djusted. but there are many await
ing settlement.
A Turnover Tax.
William C. Cornwell. editor Of the
tBache Review, addressed the kiwanis
CLUB of Chester, Pa. today on the
value, simplicity and business of the
turnover tax as compared with the
present complicated and undesirable
income tax laws.
in explaining the turnover tax. Mr..
Cornwell said:
The arrangement as now contem-
plated would require every one who
expects to make sales during the year
10 take out a license at the federal
tax bureau, for which he should pay
ISL year. This would put him on
sthe books of the government. 1t
would act as enlistment in the army
Hbf support
Once a month every one who made
esales would figure up the gross
iamount thereof and if the sales OK
Ceeded $500 a month would make out
H. check for l per cent Of the amount
Stnd send it to the government. II
Males were under s500 he would not
send a check. but would send state
inent of the volume of sales"
Six thousand dollars total sales
would be the smallest amount on
which taxes would be paid
Referring to the simplicity COM
pared with tke present law, Mr.. Corn
we'll says: Can you imagine any
ming more simple? Compare il to the
tionS and divisions which you are re-
quired to fill out. The Treasury has
. estimated that it costs $100.00O.0Oo a
year for expert service in preparing
! income tax schedules and the gov
ernment, $25.000.00O more to collect
them
with the turnover tax in. force. the
excess profits and surtaxes would be
abandoned"
$1,000 Exemption Allowed.
The speaker then continued outlin-
ing his plan with the statement that
would permit many to 60 untaxed.
but they would have the purchase tax
passed along, Just as they have now
with the great difference they now
pay from Is to 40 per cent"
He advocated straight income tax
en- all incomes over $4,000. Estimated
return from the turnover tax was
100000 ,009. This tax is in success
ful operation in the Philippines. it is
popular in Canada and France adopt
IF adopted the turnover tax will
free America from the worst and
most destructive operation which the
government has ever placed upon its
citizens Capital funds have been
driven out of business to avoid con-
'1iscation by Surtaxes, and q vast
amount of other funds have been con-
fscated by the excess profits tax"
Calls for S8s.!4c.OOO.
Secretary of the Treasury Houston
has called upon banks having deposits
70 the credit of the Treasury arising
to pay in S65,742.000. or 25 per cent
OF the balance of the fund on hand.
or the $310,6S6.500 Treasury certifi-
Gates sold January Is. less than $780,.
400. 900 remain on deposit
The Treasury should be receiving con-
siderable payments on account of income
taxes in the near future. though the big
payments will not be made before due
The chances seem to favor another
.@rtiicate issue in February. although
there are no certificates maturin. Ion
mat date.
Capital Traction 81 Higher.
Capital Traction IS moved UP to:S7
Washington Gas 5s were also frmer.
selling at 1S The stock list was dull
and neglected. A few shares Of National
Savings and Trust Company stock
brought Z.I5E. GaS was UrTners S1A
hid and 37h asked.
ChaDter Debate.
New York and Pittsburgh schApte rs
Of the American Institute Of Bank
ing will debate at the New Willard
jiotei in this city on the evening of
February 8 AT o'clock. Pittsburgh
..ebaters have the Affirmative of the
Iroposition. Resolved. That Con-
e-ess should Replac. the Excess
I'rofts Tax by a Tax on Sales"
At the Iwenty-third annual meet
ing of the stockholders Of the Ma
tional Benefit Life Insurance Com
pany held at their home Office build
ing. sos F street northwest. Monday.
was elected president. to succeed the
late DIR. Robert w. Brown; he. also
49, reelected treasurer
DIR. W. A. War6eld was elected
WOO president and medical director
and s. W. Rutherford Waa reelected
secretAry and general manager for
The twenty-third consecutive time.
J directors were Reelected and the
name of Charles Il. Lee WAS added to
MI the vacancy occasioned By DR..
Browns death.
The National Bank OF WashinH10n
At the regular meeting Of the board
Of directors. held today the follow
ing officers were elected: Clarence +.
gorge L. Starkey and George r.
sacks, vice presidents: W. Wallace
Nairn, cashier. and J. Frank White
assistant cashier
Mr.. Nairn. who has been with the
hank Tor many years as assistant
A-B-Run. who died last July.