The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-08-01
NO SALES TAX
IS INCLUDED IN
REVENUE PLAN
Political Situation Ma kes
Such a Measure Inexpedient
To Repeal Excess Profits
and Soda Water Taxes.
TARIFF MAKES UP LOSS
PALLADIUM NEWS BUREAU


WASHINGTON, Aug. 1. = Majority
OF the members of the house ways
and means committee are pretty well
agreed that the new revenue bill,
which will soon be reported to the
house, will shape up about as follows;
Taxes to be abolished or reduced: L.
Repeal of the excess profits tax
2. Reduction Of the upper ranges OF
the surtax. 8. Repeal of the transpcr-
tation tax. 4 Repeal of the so-called
nuisance tax" or soda water tax.
Taxes to be substituted to procure
the essential revenues: /. Increasing
the fat corporation income tax of 10
percent to Is percent. 2. Increasing
the excise tax on cigarettes and smok-
ing tobacco mot cigarsl. 3. Slight IN
crease in the inheritance tax. 4. In
crease Of / cent in the rate of letter
postage, and possibly, but not prob
ably. small tax on bank checks.
Political Opposition Factor
II can be stated positively that there
will be no sales tax. not because the
majority of the members of the COM
method of raising revenue but for the
reason that 1t would be inexpedient.
politically, in their opinion.
II the sales tax could be divorced
from politics there is reason to be-
lieve that there would be very slight
opposition to it in the committee as
most of the committee members are
said to recognize it as the most econ
omic method of taxation.
The excess profits tax is to walk
the boards because the majority of
the members of the ways and means
committee hold that it violates all
three principles of economy, certain
ty and convenience" Because it is
failing of it's own self for the reason
that so little revenue is now being
collected under it.
Surtax Alters Finances
The theory that existing surtax
rates are killing the goose that laid
the golden egg is responsible for the
decision of the ways and means COM
mittee to reduce the upper ranges OF
the surtax.
1t is asserted that the high ranges
of this tax, reaching 20 per cent. drive
incomes into investments in non-tax-
able securities, and as a result the
higher incomes have been producing
less revenue than the lower incomes.
The repeal of the excess profits tax
the reduction of the higher ranges oi
the surtax and the repeal of the
transportation tax will mean an esti
mated loss in revenue of $500, 0,000,0 ,00e
The committee believes the proposed
substitute taxes and the new tariff law
will make up the deficiency.
The majority of the committee mem
bers believe the new tariff act vii
yield a revenue of s487 100000, whicr
is s15O,000,0o0 more than the yield o.
the present tariff law.
Corporation Tax a Help.
1t is estimated that the proposed in
crease of the flat corporation income
tax from 10 to Is percent will provide
an additional revenue of S500000, 900
Proposed increases of excise taxes OF
cigarettes and smoking tobacco arr
counted upon TO provide an increas,
in revenue of approximately 500, 900,
900, and certain members of the way!
and means committee are urging tha
the inheritance tax be increased to /;
point where it will yield an additiona
S50000,000.
A tax on bank checks is not antici
Continued on Page Five)