The Washington times., 1921-12-21

of New York.
water transportation companies and
competing lines Of any character OF
locomOtion. A like tax on the gross
receipts of all public service utilities
Is gas and electricity, telephone, and
telegraph companies. The rates of
these companies are regulated by law.
and therefore the tax will hardly affect
the ultimate consumer. II will be
absorbed in the operating costs.
Canada. with a population Of only
$500, 900, will receive, II il estimated,
$75 zoo. 900 this year from this form of
taxes. The United States has q popu-
lation Of over 12o.o00.oO0. or thirteen
times that of Canada. Figuring pro-
portionately, the sales tax in the
United States will bring in 81 ,000, 000.-
900 yearly. With the greater volume
of business in this country, the fig
ures will reach $500, 900 900 more. This
Is sufficient to pay the entire bonus
II every ex-soldier elected to accept
the cash features of the bill.
The following facts are advanced
to commend this SALES tax" bill to
the public:
1-There is no additional cost for
collection. The existing Government
agencies can readily handle 1t.
1.-The ease with which 1t II collect
able. Every manufacturer or pro-
Queer, jobber, and wholesaler becomes
a collecting agent for the Government.
3-It is a continuous source of
revenue. as the tax Is payable within
thirty days after the last day of the
month for which the tax Is collected.
This will furnish the funds to pay the
quarterly installments to the ex-sol-
diers. After that, 1t will be available
each month to the Government, eiimi-
mating the necessity. as at present, of
issuing short-term bonds paying high
interest and tax exempt, to tide the
Government over lean periods.
At is painless taxation. The ulti-
mate consumer pays less than per
cent Of the wholesale cost Of the
article. In most cases, because of the
small amount. the competition in bust
ness and the margin of profit, II will
be absorbed by the retailer. So that
the buying public will very often pay
nothing. yet the Government must
and will derive the benefit.
-The sales tax cannot be a heavy
burden on the buying public. During
the civil war, over rs per cent Of the
tax revenue came from consumption
taxes: In 1913. IS per cent Of the
total tax revenue came from this
source, and in 1914, the first year of
the income tax, 89h per cent Of the
total tax revenue was derived from
consumption taxes.
6-After the bonus IL paid. It will
materially reduce all other taxes. 1t
will be necessary to collect only
$1,000. 000. 900 through income taxes,
profits txxes. and surfaces.
Twenty Per Cen Of Tax Lost.
To-day with evasions on the part of
large business through design or in
ability to understand our complex tax
system, II can be estimated that 20 per
cent Of the taxes charged to the public,
fails to reach the United Stated Treas
1.-THE Department Of Justice, in it's
Investigations under the Lever act,
found that the pyramided profits
taxes OF corporations and partnerships
and individuals added 23.2 per cent to
the price Of articles sold to the con.
sumner. 49,. . 's...t
within one year after the sales
taxes Is in operation. II will relieve
the weight of all other burdensome
taxation. There will be no longer any
incentive for the rich man to with
prises . and industriais to invest In
tax exempt securities; a burden will
pe removed from our manufacturers
and producers and business will at
once be encouraged; the individual ex-
emptions of the man of small income
and heaps Of families will be greatly
increased and be a relief to a tax
riden public.
IT believe that my bill will receive
the support of our national represent
atives and the bushes men and think
ing citizens Of the country.
Has Long Fighting Record.
CONGRESSMAN Volk has been active
ly connected with all movements for
the betterment Of the conditions of
the former soldiers. He served with
the American Expeditionary Forces
during the late war as q first lieu
tenant and was connected with the
312th 'Remount squadron and 88th
Aero squadron. '-...
He was chairman Of the central
committee of the Veterans of For
eign Wars Of Brooklyn, Queens and
Long Island, Judge advocate Of the
". #. W., State of New York, chair
man Of the bonus parade committee
which marshalled $4,000 men in the
bonus parade, New York city, o.
tober Is. 1920, in fayor Of the bonus;
was chairman Of the bonus drive
committee which organised New
York State for the bonus in 1920;
chairman of the national bonus drive
committee; was chairman of the
delegation Of forty.seven Congress
men. representing thirty-one States.
which went to Canada on November
~ and spent a week studying the
operation of the sales tax in Can
ada.