Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-04-23
GROSS SALES TAX PROBABLY Be
ADOPTED TO take PLACE EXCESS
PROFITS TAx-HARDING SILENT
~ JOHN PAGE
fraAAa NeMa RarYlrnl

WARRINGTON. April gs.-The an.
hounced intention of the republican
Traders In congress 10 shift the bur.
den 81 federal taxation from excess prof.
its and topheayy incomes 10 conHump.
uon II meeting with considerable oppo.
sition. II seems certain that dono.
cratic opposition % such measure
viii be- determined and prolracted. aud
that In u the members ~ the minority
party will he Joined by those republl.
cans who See In the proposal an inien.
tlon % shift the burden ~ carrying
and liquldatinE the war debt from the
shoulders a. the huge profit.makcrs Co
the more numerous hut less financially
sturdy shoulders of the consumers
There II more than little pcrplexliy
and divergence 81 opinion IN rcpubll.
can circles M 10 just how Ia proceed.
They have been called by the country
10 cure It's economic ills. They have
diagonosed the case and declare that the
business pulse must be stimulated. AZ
ter sundry consultations among them
selves the q. O. T. doctors decided the
proper stimulant 10 be- administered Il
n gross sales tax. 90 be taken by the
consumer every time he buys anything.
90 several times each twenty.four hours
The learned doctors are now engaged
In an earnest effort 10 determine Just
how strong they can make the pill
without causing the stomach of the pa.
tient Ia revolt. and how they may coat
II with sugar No that the consumer
will not detect its bitter taste while
taking u.
Harding Perpleyed.
President Harding IN not too helpful
"a hts party leaders. In one sentence
Of his message to congress he says
I'VE are committed To the repeal Of the
excessprofits tax. 80" In the next sen.
tence he says. "The country does not
expect and will not approve q shifting
81 burdens" Yet II they repeal the
exccss.profits tax and replace II by a
gross sales tax they will have shifted
the burden from profits and incomes
which are larger than they ought 20 be
In time Of financial stress. 10 pur
chAses made by consumers.
The proponents Of the sales tax. are
BY no means agreed among themselves
as to the exact form which II should
assume. -Four distinct methods az tax.
Ing sales have been proposed. These
are; first. a tax on all sales commodl.
ties. real estate. capital assets. and
services: second. tax on all sales Of
commodities: third. a tax on sales by
manufacturers and wholesalers only:
and fourth. a tax on retail sales alone.
The differences between these four pro.
poaals are Of considerable importance.
The first plan. designated as the gener.
al turnover tax. would make transac.
tions ON the stock exchange and salaries
and'wages subject 20 taxation. Under
the second plan these would be cx.
cluded. Under the third plan farm
products. timber. and raw materials IN
the hanus Of the original producers
would'be exempt. and under the fourth.
commodities would he taxed only one
time. that II. when they passed into tho
hands az the consumer. Under this
latter plan the pills would have a little
or no sugar.coating and the consumer
would know exactly what he was TAX
ing: II II therefore, unlikely Of adoption.
Exempt Farmer.
The second plan. providing for tax
on nll sales ~ commodities. has by far
the greatest number II advocates. Sena.
tor Smoot and Representatives Bacha.
rach and Mott have already introduced
hills embodying this idea. The Smooi
hill would exempt from the tax all bust.
nesses with sales amounting To $4,000 or
less per year, This provision II expect.
cd 60 meet the objections of farmers
and small retailers. and also 10 simplify
the collection of the revenue. Estimates /.
of the yield from a sales tax vary wide.
ly. Senator Smoot believes that tax /.
~ per cent. as proposed in his hill. .
would yield a billion and a half dol
lars.
In behalf Of the sales tax az a per. I
manent source 81 revenue Il IL argued I
that II viii produce large income at +
a very low rate: that the taxpayer can .
easily determine what he must pay. !
and that the tax. as II falls upon the
ultimate consumer. viii he so light ~ /
virtually escape his notice. Each Of .
these claims Tor the sales tax has boon
challenged by It's opponents. In re-
buttal of the claim for simplicity In ad.
minis,ratiors .ihey poin, out that sales
re able TO 60 automobile rang ...s ply
scan. DR.. y. n. Packard. announce
today.
sAtthewson now is able 10 be- drcssc
Tor b short time each day and has n
cough or temperature. the doctor said