Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-02-28
COUNTRYWIDE
VOTE OPPOSES
TAX ON PROFITS
Results of National Chamber
of Commerce Referendum
Announced.
SPLIT ON SUBSTITUTES

An overwhelming demand from Ameri-
can business for repeal of the excess
profits tax is shown in a referendum vote
Of the organizations within the member
ship Of the Chamber Of Commerce Of the
United States. The results were made
public today through the indianapolis
Board Of Trade.
The ballot was taken on report OF
the national chambers committee on tax
alton, which advanced fifteen proposals
Sfor changes in present methods Of Fed
eral tax levy.
Although the committee recommended
substitutes for the excess profits tax, the
vote was not conclusive. a considerable
majority voted against an increase in In
come taxes and az the same time there
was q majority vote against any form of
sales tax, which had been suggested both
as a substitute for and as an addition
to other forms of tax.
A proposal that excise taxes be levied
partly to take the place Of the excess
profits tax was carried.
PROPOSITIONS
AND VOTES.
In the chambers referendum system a
two-thirds vote is necessary to carry.
The propositions submitted and the vote
On each were as follows:
1. The excess profits tax should be re-
pealed. For, LIS Against, A. Carried.
2. Revenues now derived from the eX
cess profits tax should be obtained main
ly from taxes on incomes. For, OIL.
Against, 1904. Not carried.
8. There should be excise taxes on some
articles Of wide use, but not Of first
necessity. For, 1,217. Against, 504-
Carried.
4. Should a sales tax be levied instead
of the taxes mentioned in Propositions
and 8? For. 704. Against, $50. Not
5. Should a sales tax be levied in ad-
dition to such taxes as are mentioned
in Propositions and 8? For, 763.
Against, S94 Not carried.
6. Members voting in favor Of Question
4 or Question are requested to indicate
the type of sales tax they advocate.
a. A general turnover tax. For, OIL
b. A limited turnover tax. For, $50.
c. A retail sales tax. For, al.
z There should be a moderate and
graduated undistributed earnings tax on
corporations. For, $40. Against, 1908.
Not carried.
g. Each individual stakeholder Of a
corporation should pay his own normal
tax: For, 693. Against. 975. Not car
He'd.
o. Income from any new Issues Of Sc
eurities finch may lawfully be made sub
.
Nor, 1885. Against, 275. Carried.
10. American citizens resident abroad
SHOULD be exempt from the American
tax on incomes derived abroad and not
1852. Against. 4J6. Carried.
IL. Profits arising from sales Of cap
ital assets should be allOcated over the
period in which earned and taxed at the
rates for the several years in the pc
Rod. For, 1,411. Against, 243. Carried.
II. An exchange Of property Of a like
or similar nature should be considered
merely as replacement. For, 1,547.
13. Net losses and inventory losses in
any taxable year should cause redeter-
minatiOn OF taxes on income of the pre-
ceding year. For, 1850 Against, S23.
Carried.
IA. Ascertainment by the Government Of
any tax based on income should pre-
cede payment For, 1,2l5. Against, 49,
Carried.
should be decentrallzed. For, 1,321.
Against, 800. Carried.
AGREE THAT TAX
HAMPERS BUSINESS.
The vote makes it clear that business
men are united in their view that the
excess profits tax hampers business oper-
ations and retards the progress of re-
adjustment. Among the objections to the
tax as pointed out by the committee are
that It produces inequities; that it is
difficult Of administration that price re-
auctions Will decrease revenues from this
<source, and that the tax encourages ex-
travagance.
A striking reaction was shown IN the
vote against increasing income taxes. It
was obvious to the voters that such in
creases would fall on the middle class Of
incomes, sincs little more can be derived
from smaller incomes and because taxes
already are so high on the larger in
comes that those receiving large incomes
are investing in tax free securities and
thus defeating the purpose Of the tax.