The New York herald., 1921-01-09
TAX PLAN OFFERED
BY DRY GOODS men
Annual Yield of 81, 900. .OOO,-
600 Estimated in Programme
Presented.
SUGGESTS S5 POLL TAN
DISTINCTION Drawn Between
Manual or Mental Efforts
and Business Investments.

WASHINGTON, Jan. S-A compre-
hensive programme for revision of the
Federal tax laws, estimated 10 yield an
nually the $4,000. 900. 900 which Secretary
Houston has said the Treasury required.
was filed to-day with the House Ways
and Means Committee by the tax COM
mittee of the National Retail Dry Goods
Association
The plan worked out by the trade Or
ganization contains several proposals not
heretofore advanced including the assess
ment of a Federal poll tax of 50 on each
person above 21 years old who receives
an independent income. Income tax ex-
emptions. it is proposed would be raised
from 81 900 to $4,000 for unmarried per-
sons and at from $4,000 to $4,000 for
heads Of families. All business would be
allowed an exemption OF $4,000.
Other features carried in the pro-
gramme. which was approved through
referendum of the organizations 1000
members provide that:
Income from salaries. wages. bonuses
and commissions should not be taxed at
so high rate as income from business
and investments.
Income derived from business. wheth-
er individual, partnership or corporate,
should be taxed on the business itself
and be subject to no additional tax
when distributed to partners or stock
holders.
All other incomes, including profit
from the sales of capital assets, should
be taxed at higher rate than income
from business and in still higher de-
gree than income from manual or men,
tai efforts.
There should be a tax on gross sales
of all goods sufficient when added to
oil ofb in he
gramme and including customs receipts
to aggregate the required $4,000 100000.
The programme would eliminate from
the present revenue act the excess prof
its tax, surtaxes on iedividuals, taxes
on transportation, insurance, admis-
sions dues and on non-alcoholic bev-
erages and special and capital stock
taxes, stamp taxes and certain excise
taxes.
The normal income rate would be
fixed at per cent. on the first 1900
above the exemption, while the remain
der would be subjected to a tax of
per cent. and no surtaxes would be
levied.
Income from business institutions
would be taxed at 10 per cent. on
amounts above the exemption. In this
connection a statement by the associa-
ton officials explained that distinc-
ton mas Deen maze III lHelr pioEi ANIME
between manual or mental efforts and
the results of business investments, the
latter being required to bear the heavier
burden.
All other incomes. including "un-
earned" or investment income and
profits, would bear surtaxes ranging
from one per cent. on incomes from
$40. 900 to $50. 900 to six per cent. on
incomes in excess Of 100000.
Estimates compiled by the assoca-
ton committee placed the revenue from
the five dollar poll tax at Ss0.000.00O
annually From income taxes of all
kinds proposed in the plan it was esti-
mated the revenue production would be
approximately s1.S23. 900. 900. Customs
receipts were placed at 1850. 600 and
the sales tax which the organization
proposed. with rate of one per cent.
would yield 1.S16.500, 900.
Customs receipts however. were cal
culated on the basis of the present reve-
nue. act and did not take into considera-
ton the contemplated changes now
being worked out by the House Ways
and Means Committee.