Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-06-09

tend and shift the obnoxious methods
already in use.
The reason you are here, interested in
the tax question, is because the present
system Of taxation has done incalculable
harm to the United States. The tax
makers started out with the avowed in
tention of making the rich pay for the
war
MONEY DRIVEN
FROM BUSINESS
"IncOme-tax payers took to the woods,
and through investment in tax-exempt
securities have deprived the country OF
funds for industrial development. The
courage to undertake business enter
prises was destroyed because profits
would be largely absorbed by the Gov
eminent, and losses would have to be
borne individually. Money for business
enterprise has vanished.
Excess profits taxes absorbed by the
Government have dried up the industrial
reserves depended upon, normally to
bridge over depressed periods like this.
Thousands Of concerns are crippled and
unemployment is widespread.
In its direct bearing upon each in
dividual in the United States 1t should
be understood at the outset that all these
heavy taxes have been, IS far as possible,
pyramlded and passed on to the CON
sumer, and you and ] and everybody are
today, paying, according to an estimate
Of the Department Of Justice, % per cent
more for commodities than we would be
doing If there were no such taxes.
EXCESS PROFITS
YIELD CUT IN HALF.
That Is one reason why we are in
terested in having a change, but the
reason the Government is interested is
because excess profits and all profits are
dwinding out Of sight under the pres
ent depression. For the year ending
June 80, 1920, the yield from excess
profits and income taxes was nearly
$4,000 600 900. The yield this year will
cut this In half, and probably much less
than half"
incomes have been steadily seeking
tax-exem2t bond investment, and tho
returns to the Government grow smaller
and smaller.
abuse Of taxation has arrested the
flow Of capital and dried up Its sources.
( The political substitutes offered even II
the most destructive taxes are abolished,
are weakly inefficient for producing the
funds and VIII positively continue the
! pressure against capital outflow.
The Government has got to find some
new way Of raising the money.
WOULD put TAX
on GROSS SALES
The business mans way, and the
sound, sensible, non-political way, is to
abolish al these destructive taxes and
( 20 put IA operation the tax on turnover
/ or gross sales"
/ Mr.. Cornwall said that the tax on turn
over, or sales tax. would yield anywhere
/ from a billion and a half up to probably
four or five billions, depending upon the
/ extension Of its incidence. Under the
/ Smoot bin" he added, at IS estimated
to yield $500 COO 900 now, and more in
active business years"
+ lie said that the contention that in
adopting the turnover tax, which is a
consumption tax. the burden is taken OF
the rich and put upon those OF moderate
means, is falIacy, because the burden
is already on consumption"
Carefully worked- out statistics, he said
show that the 1 per cent turnover tax.
from raw material 10 consumer would
add only Pa TO 3 per cent to average
retail costs.
The turnover taZ," he said. as so
simple In its computation that IL can be
figured out by a schoolboy who has had
/ no education other than a lesson In deci-
NAL fractions. This very simplicity would
| be an amazing relief to the whole coun-
[ try-uot only from tho mental point Of
Wow, but from the economic side OF saw
Ing enormous fees every year that are
now being paid 10 experts to compute
tax returns"
NEW TOUCHES ON