Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-09-30

Senator Sirr,r1,on Attacks
Repub blicanl Tax Rev
sion Bill.

NepuDilcail lslx kew
sion Bill.
Washington Sept. 80. Opening n n
general assault on the Republican tar
bill, Senator Simmons OF North Caro- 4
lima, ranking Democrat on the ana nces d
committee, charges today In the sem
ATE a that the reyisions proposed by
that committee were solely In behalf
OF the corporations and those tar pay.
Eers ers whose net incomes exceeded u $66,
900 a year. M. .e9s q n ,..sss
Senator Simmons said that ir,nedi4
ately after the armisttce the, tax Laws
We're revised and reductions made Id u
the taxes on individual Incomes and q
corporations now he aided Il was
proposed to make further cuts while 3
the millions of people that pay the i
miscellaneous taxes at this very hour il
are paying the ( peak war taxation &
rates. Fs & HI b 3SS Ss al 7E. Sra3 f.Sss
Before the North Carolina senator
began his address. Senator Smo0t 81
Utah. Republican member OF the
nnance committee. presented his plan
1or a manufacturers am sales tax OF three
per cent explaining 1t is a prepared
statement which he read to the sen
ate. - <@s ~ isil IA n a Y$5
smoot's Plan.
The senator explained that this
would be in substitution for ..a1l OF
the various war taxes, the excise
taxes, luxury taxes, stamp taxes, capi.
tai stock tax. Transportation, teIe-8
graph and insurance taxes. che taxes
on soft drinks, ice cream, cosmetics,
admissions and dues, and ali sof The
other variety OF obnoxious, dfscri1ii.ss
tnatory forms of taxation. which
would be repealed on next January IL
under a series of amendmenta to the
revenue bill offered by the senator.
Repeal of the excess profit tax as OF
last January instead of on nexE
January as planned by both the
house and the senate finance commit
tee also was proposed by Senator
Smoot. Also, under his amendments,
the corporation income tax would re-
main at 10 per cent, but there would
be change in present tobacco Huuurs
and inheritance taxes. ,ss9 9sIss AZ
The Amendment. sEs :s4s 81
The sales tax amendment r-esad: HI
| That in addi ton to all other taxes
there shalt be levied, assessed. cplIect. u
ed and paid upon every commodity
i manufactured or produced, when sold,
leased or licensed for consumption or
use without further process OF nant.
factnre,.a a tax equivalent to three per
| cent of the price for which such COM
modify is sold, tleased or licensed:
Isuch tax to be paid by the naannfae-'
turer producer. = II Ii 4. sss
should be noted sa3d ssaatpf
u ysGat as ttNe S tax fS III p1Ssd
/ only when articles are sold for con-
sumption or use without further
! process OF manufactaire, that sthe ta1
! will pc non-cumulativAsin ! In effect and
will give the intesrateds business no.
advantage over the distintegrated;
business, There will be but ons
If commodity is sold for consslrnp- y;
! ton or use In a further process of;
: manufacture no tax will be imposed. :
4 For example, crude oil sold for fuel
would be taxable, hut,if sold to ia res
4 finery for the making OF gasoline or
4 like commodities would not be tax
4 able. Il, ssl,5 ~.
"In order to avoid administrative
4 difficulties with small sales, the bill
provides for an exemption of all sales
tof less than $1,000 during ono year.
a This will exclude about one per cent
4 OF the manufactured goods in the
lcountry, according to the census OF
manufacturers. It will practically ex-'
4 empt all the agricultural products
since the average value OF products
of farms fer this year has been estf-
mated by the department Of agricul-
ture at between $1,000 and 5000 but:
as most agricultural products would
d1nd their way into manufactured
products, they would be exempt any
way under the definition OF tax. 4
No Discrimination. ri
Provision is made for a like tar
i upon similar imported commod tiles SO
that there can be no Discrimination
against American products. ss
The yield Of this tax has been
carefully estimated and approved by
one Of the loren, ost economists in the
country, Professor Charles j, Bullock
Of Harvard, to produce during the
calendar year 1922, $75s, ,756,80o.
Conservatisn has been exercised
Throughout this estimate. The yield
will undouh htedly be close to- $1,000,-
than ample to provide the revenue
which will be lost by the repeals
:; which / propose. NE,
Iwant to see a real revision of our
tax laws and not the perpetuation in!
y times of peace of revenue laws which
were devised under the emergency OF
war. 53, 81
/ II want to see a real revision OF our
ty for the American people and be :
: lieve we can bring it through the en-
!, actment Of a proper: tax system .;Ss
Il believe that these amendments
will accomplish the desired result and
] know that the people throughout
this country are Of a similar belief
:; ! from general approval which the plan
! has received K
u T.f /. +.