The Washington herald., 1921-01-26
EXPERTSURCE
CHANGE In TAX
SYSTEM OF U.S..
Speakers at Merchants
Banquet Propose
New Schemes.
BACKARACH URGES
FINAL SALES TAX
Says Rate of l Per Cent
Would Give $9,OOO,OOO
Revenue a Year.

Agreeing that the present system
Of taxation i'm impracticable, but
differing as to the suggestions of a
system to replace it, Representative
Isaac Backarach, OF New Jersey;
Lew Hahn. of New York. managing
director of the National Retail Dry
Goods Association. and Harold
/ Young. Washington representative
OF the National Retail Dry Goods
Association, expressed their views
on changes necessary before the an
nual meeting Of the Merchants and
Manufacturers Association, in the
Raleigh Hotel last night.
The system espouscd by Repre-
tentative BaCkarach is a merchan-
/ disc tax on final sales from which
at the rate Of per cent. he esti-
mates that revenIc of 5000, ,OOC 900
would be derived.
This system proposes the absolute
elimination Of the excess profits tax.
a reduction from 4 to 3 per cent in
the rate of the normal income tax
| on incomes up to and Including
$4,000; :" reduction in the higher
rates of the surtaX schedule so that
the highest rate would not exceed 40
per cent instead of the present rate
or 65 per cent; the elimination of
the tax on all fountain drinks, ice
cream candy wearing apparel,
toilet articles. medical preparations.
together with the special taxes on
passenger automobiles for hire.
pleasure boats and other amuse-
ment taxes.
System Explained.
The system of taxation as advo-
Gated by the National Retail Dry
Goods Association. and explained
by Lew Hahn and Harold Young,
proposes an income tax in addition
TO a turnover tax of l per cent on
all commodities, but net on serv-
Ices. The income tax would be 4
per cent up to and including $4,000
and per cent or all in excess of
that amount.
This system provides for..the
elimination OF the, EXCESS profits
tax; the surtaX on individual in
comes; tho tax on transportation
and insurance; the stamp tax; the
luxury tax and the tax on special
capital.
City Houses Full.
Despite all OF the claims that
have been given publicity respect
ing lay-Offs in and out of the gov
eminent service" said Philip King.
president of the Merchants and
Manufacturers Association, in his
annual report, I'VE are gratified to
find our population in Washington
of such proportions as to make a
vacant residence or apartment
rarity.
Furthermore, unemployment is
by no means beyond the normal
state of ordinary times.
"A return to normal businass
means that the order-taker must be
replaced by the salesman New
IDEAS must ge developed for the
furtherance of trade This will
bring no special hardships because
as matter of fact the world needs
so much. that there is plenty to do
for willing hands.
Wants Slow Change.
Il am sure that every business
! hrm in the National CaCpital real
Lies that change in price levels
would come and likewise what it
was to the interest of both bust
ness and the public that the change
should be gradual"
King then outlined the activities
of the association during the past
year and set forth some of the
plans for the coming year.
That the past year was one of
success for the merchants and fam
ufaCturerS OF Washington and that
the new year presents possibilities
of even more success was the sub
stance of the annual report sub
mitted by Charles J. Columbus. Sec
retar yOf the association.
Columbus Speaks.
Commissioner ]. Thilman Hem
drick urged the business men to
be fair and just in their dealing
among themselves and with the
public, and more hearty cooper
alton between the public and the
retailers and vice versa.
A communication from President
elect Harding, in response to an in
citation from the association to
attend the annual dinner early in
March, stated that owing to the
great amount of work which would
accompany the first few weeks of
| his administration, he would be
unable to accept the invitation.
Directors Picked.
The following chairmen of the
various trade sections of the as
sociations were elected as the Board
of Directors for the coming year:
Charles W. Semmes, Gen. Anton
Stephen, Henry Ofterdinger, W. w.
Griffith, John J. Dugan, George s.
DeNeale, NJ. G. Gibbs, E. G. Graham,
H. D. Ormsby, Charles B. Smith.
John H. wilkins, H. Zirkins, Ernest
Mayer, Louis Levy, Joseph A. Burk-
art, J. c. Callahan. Sidney West,
George E. Hebbard, Philip King, NJ.
A. Reese, Hugh Reilly, r. E. Ma
theirs, ]. NJ. Cunningha. Charles F.
Crane, f. A. Harris, Joseph Stras-
burger, F. w. Harper.
The newly elected boasi OF direc-
tors, will meet in the associations
headquarters next Thursday after
noon for the purpose of electing the
officers of the association for the
coming year.
r1. E.-o~.-~ H.-x "A MI