The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-23
SAVES TAx IN DISGUISE.

A bill introduced in the house
by Representative Mills of New
York provides for a tax on all ex-
penditures for personal, living and
family purposes, but grants certain
exemptions. 1t proposes a tax of
per cent on expenditures of $4,000
and under $4,000. running up to a tax
of 40 per cent on expenditures of over
$4,000 a year.
The Mills bill embodies the prin-
ciple of the sales tax but in the most
that could be imagined. Where a
merchaI had 1000 customers the
government would be put to the ex-
pense and trouble of collecting from
each one separately. while under the
sales tax it could collect from every
one at the same time thru the mer-
chant with no chance for any to es-
cape.
The general sales tax. to be ef-
fective, must be coupled with provi-
sions that will insure the reporting of
every sale of any commodity, made
by anybody to anybody. This can be
accomplished by requiring everybody
engaged in business to take out fed
eral license to do business, and pro-
hibiting any one from conducting any
sort of business without a federal IL
cense. to be displayed whenever re-
quired.
There is nothing new in the pro-
posal for a license to be obtained be-
fore one is permitted to transact bust
ness. Nearly every state provides for
tho licensing of certain kinds of bust
ness. Auctioneers, for instance, are
required to be licensed before they
can do business in New York and
other states. No one may do bust
ness as banker, in most states, with
out state license. Pawnbrokers are
quite generally required to be Ii
censed. Hotels, restaurants and drug
stores are required to take out IL
censes in most states. A large num-
Der of cities extend the license re-
quirement to many sorts of mercao-
the business. In some cities, no bust
ness of any kind may be carried on
without a city license.
The federal government now re-
quires several different kinds of bust
ness to take out a federal license be-
fore they may operate lawfully. Per-
sons operating automobiles for hire
must pay an annual fee to the United
States of $40 for ordinary cars and
$40 for those having a capacity larg-
err than seven passengers. Bowling
alleys and billiard rooms pay a fed
eral license fee of SO per alley or
table. Brokers of several kinds are
included under. the provisions of the
federal license laws as they now stand;
custom house brokers pay $50 a year;
pawnbrokers, 800 a year; ship
brokers, $50 a year; stock and pro-
duce brokers pay $50 q year and, If
members OF stock or produce ex-
changes additional fees up to 1850
year dependent upon the value of
their seats on such exchanges;
manufacturers of cigars, cigarets and
tobacco from 81 to $24 a year to the
federal government for the privilege
of doing business; circus proprietors
have to take out a 500 federal IL
cense; proprietors of other public ex-
hibitions pay a SIS license fee; the
aters and museums must have federal
licenses that cost from $50 to 5000
year, according to the size of the the
alter; riding academies at 500 a year
and shooting galleries at $40 are other
businesses for which federal licenses
must be taken out.
The proposed federal license for ev-
erybody who engages in business is
merely an extension of a principle al
ready in force.