The Washington herald., 1921-04-24
DO THE EAMERICANPEOPLE
DEMANDA SALES TAX?
Many Arguments Against Shifting Burden
From Big Business to Public.

1t Is becoming more and more
evident that the most important do
mestic question before Congress
and the country is that regarding
the revision OF taxes. Many schemes
have been suggested. which 1t is de-
clared, will make the extraction Of
some $4,000, 100000 a year from the
peoples pockets less painful. 1t
might as well be recognized In the
beginning that 1t will require vast
sums to meet government expenses
during the next few years. There
Is only one place where any saving
can be effected which will reduce
national taxation. and that Is in
connection with the military and
naval expenditures. So far there
has been little tendency to save
there. and such economy as may be
practiced in the reduction of Cow
ernment clerks and employees wilt
never be noticed in the tax bill.
Three important tax measures are
being advocated all over the United
States The nrst of these Is the re-
peal of the excess profit tax. This
tax is almost universally condemned
as blocking the progress of busi-
ness and as a cause for the main
tenance of high prices. The future
yield Of this. tax will also be reduced
very much. The second step urged
Is the reduction of the high rates of
surtaxes on very large incomes.
These high rates are forcing invest
ments in tax free securities, and are
taking needed money out of rail-
road and Industrial lines. 1t Is be-
lieved by many that the reduction
Of the maximum surtax to around
40 per cent would result in a much
larger net return to the Treasury.
The other measure which appar-
emily is receiving widespread ap-
proval. is that for a general sales
or turnover tax. II Is a striking
fact that in the recent survey of
national conditions conducted by
the Fidelity Trust Company, II was
reported that a sales tax was uni
versally favored. In this connection
n must be remembered that the re-
ports on which. this summary was
based were made by bankers and
big business men. No doubt these
men were honest in making their
reports. but 1t Is possible they re-
fleet their own individual opinions
more than those of the average of
their district.
n SaicS ldA VIII unuOuDIeQly ShlIL
vast portion of our present taxa
ton from big business and wealth
to the shoulders of persons with
small incomes Many proponents of
this tax are no doubt honestly con-
vinced of its desirability, but on the
other hand, it would certainly be a
very great advantage to big busi-
ness to have this shift made. The
writer cannot escape the belief that
much Of the PUBLICITY regarding this
tax Is propaganda of a doubtful ma
ture.
One Of the most careful studies OF
our taxation system that has yet
been made is that of the tax COM
mittee of the National Industrial
conference board. This committee.
after many months of careful and
comprehensive investigation. during
which 1t had the beneft Of the ad-
vice and cooperation of the leading
students of tax problems, of prom
inent business men and others.
came to the conclusion that 1T is
not advisable under present condi-
tions to resort to any one of the
several forms OF a sales or turnover
tax of general application which are
being proposed
The committee discussed at length
ten important reasons for the above
conclusion. 1t is impossible to dis
. cuss these in the limits of this
article. OF the more important
reasons, three may be mentioned. 1t