New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-31
S11lOOt to Push
Entirely New
Revenue Plan
Proposes to Kill All House
Bills and to Substitute a
Taxing System Based on
Six Sources of Income
Drops ''Nuisance'' Levies
Principal Feature 3 Per
Cent Sales Tax on Out
put of $4,000, 600, 900
From. The Trsbune's Washington Bureau

FROM Inc JrfoUTc'S " oShtH1tOn Bureau
WASHINGTON. Aug Ex-senator
Reed Smoot, of Utah, moved to-day for
an entirely new tax revision and
revenue bill. which will put before the
Senote Finance Committee, of which
ne is a member, the necessity of max
ing a choice between it and the Al
ninistration bill passed by the House
on August 20
will greatly complicate the situation in
the Senate. by forcing, in the commit
tee, at least, direct fight upon the
sales tax plan. The outstanding fea-.
ture of the Smoot measure is his new
proposal of a manufacturers sales tax
of per cent upon all the manufacture
ing output OF the country, which the
Senator estimates at about $40 900 O0A-
600 annually
1t is also contemplated in the new
bill to repeal all existing revenue laws,
including the excess profits tax and
other obnoxious taxes and collect the
entire government revenues from six
forms of taxation. These SIX, accord
ing to Senator Smoot, will not only
cover all government expenses, but
leave a substantial surplus.
Shoots Plan Summarized
The Smoot plan for raising revenue
is through income taxes. with q maxi
mum of 80 per cent; 10 per cent cor
poration profits tax, the present to-
bacco taxes, the present estate tax, i'm
port duties and per cent manufac-
turefs sales tax. Collections of back
taxes and salvage of war materials
would aid materially to the Fede raj in
come, under the proposed bill.
In his estimate of the yield from his
revenue system Mr.. Smoot confidently
predicts that in addition to meeting ali
the appropriations for the year there
would be left a surplus of about $780,
100000
Senator Smoot said tonight that
there was widespread objection to the
House revenue bill. Members of the
Senate have declared. he pointed out.
that the total to be raised must be in
creased by at least $500, 100000 over
the provisions made in the House
measure.
In discussing his plan tonight, Sen
ator Smoot said
Briefly, my proposal is to repeal
every revenue law on the books to-day
and write new law, so that it will be
an easy thing for everybody to know
just what the law is.
Condemns Entire House Bill
"The program is TO strike out every
provision of the revenue bill lust
adopted by the House, after the enact
ing clause, and to insert provisions i'm
posing taxes from six sources, and
from these secure sufficient revenue to
pay the expenses Of the government
for the present year. I estimate the re-
ceipts from these new forms of tax
alton as follows:
From income taxes-with. the maxi
mum rate, 32 per cent, so as to dis
courage investments IN tax exempt
securities, about $3.50 900 900
From 10 per cent tax on the net
profits of corporations, about $445,-
OVOGOO
Prom tobacco taxes. at the present
rates, about 1855, 000,0 900.
From an estate tax, at the present
rates, about $3.50 900, 600
From import duties, and do not
believe that the new tariff bill will
yield any more income, about s400,-
600, 900
From 3 per cent manufacturers
sales tax. to be imposed only on the