Norwich bulletin., 1921-05-12
GIVE APPROVAL
 TO THE TURNOVER TAX

TO THE TURNOVER TAX
 About 40 Rotarians and a number of guests, with several visiting Rotarians from New London attended the weekly monday luncheon of the Norwich Rotary club on Wednesday at the Wauregan ho- tel. The meeting was one of unusual in terest, as taxation was the subject under discussion, taxation relative 10 the turn over tax and sales tax. The discussion was led by Charles R. Butts, who in taking charge of the meeting, and stating why he favored a turnover tax, said:
 Rather than ask son 1ne to come hele aGti ta K to !Lu l have uecilel to say little something myself, with the hope if not expectation that it nay st you to thinking and so lead to profitable dis cussion After taking a little of your time l shall call for remarks and ques- tions, and if there is not a reasonable voluntary response shall exercise the prerogative of a Rotary chairman to call on some of you by name, to contribute to our instruction and enterta ainment Remarks, from the floor will be limited to three minutes and after two minutes ! have elapsed the bell will be struck as a warning that you have but sixty l seconds left.
 This preamble reminds me of the 1 Irishman in Ireland who went to con- l said T have killed two constables. As l this remark did not seem to impress the priest he repeated with rather more en- | phasis, Father, l have killed two con- stables.' His second effort fai.mg to arouse the father confessor, he said very emphatically, Father, since I last con- fessed and received ab5oIu.ijn 1 have 1 killed two constabl This time the priest seemed 10 take notice and stl aight- | ,i1,r- Dol l,- 1 confess your sins and stop talking I oli- | ties"
 Now I am going to talk about some thing with which you are all more or less familiar that is taxes. A few years ago, say before 1913, we used to com plain a little about taxes. Mos- of the fault found was with what We paid To- cally, namely, to our own town and ely, those being practically the only direct taxes which were paid by most of us. Now, however, I think all of us are will ing to concede that up to that time we had little foundation for compla int.
 Since then we have had handed to us one after another--federal and state per soual incon1e-corporation income-capi-
 tai and excess profit-luXury-o many
 things which We wear. eat and drink
 theater and other entertainment admis-
 ns-transportation, freight, fares
 Pullman and sleeping car service etc.
 etc, etc.-all of which we paid cheer
 fully as long. as We were at war and ir necessity of a great income by our gov.
 ernment. The needs of our government were great and time could not be giver
 to devise scientific and adequate sys tenn of taxation. Now conditions have
 so changed that existing statutes vii , not provide the necessary revenue, nol | will our people longer put up with thu trouble, annoyance and expense involved
 in the present system.
 It is proposed to do away with niar! f of the taxes now levied, reduce som of the others and provide the necessar! f income to cover a reasonable budget o s our government by the collection of , turnover tax You will please note tha I used the word turnover and no D sales" This is a proposition with whcl
 I am in sympathy and warmly advocate
 By a turnover tax I mean a tax ol
 each and every turnover or sale of an, goods or merchandise. A sales tax
 understand as one on a sale to a con 7 sumer-presumably by retailer.
 One great objection to a tax on re . tail sales only is that as MT. Kahn say < "a simple. certain and workable defini |. of phraseology."
 From the costly war experiments i g taxation both in this country and else 7 where two useful conclusions can - drawn These are that in the matter c a a burden upon those least able to pa V taxes, namely those of moderate or lii
 tie income, the excess profit tax is
 bad one while the turnover tax is
 good one.
 It has been found that the exccs E profit tax is shifted to the shoulders V the consumer in an imitation of markt 1T price. It was impossible to calculat e ahead what it would amount to and S II the manufacturer protected himself b h collecting all the traffic would bear an q as always the consumer paid. It is e! ;- timated that the excess profit tax rt suited in an increase of price to tr
 consumer of as much as 23 per cent. l. The turnover tax has worked well a France, Canada and the Philippines n Is eminently fair and as nearly regl J. lated as possible to the ability or c; le pacity of the tax payer to pay The ric " man who lives at the rate of S100.0 J. per year would pay just fifty times
 much as the man whose expenses we ,r S2O00
 r. It is objected to the turnover tax thi
 it would give an advantage to those el
 terprises which combine processes, tn
 is, put raw material which they produ
 through all the processes necessary N make goods ready for use which tn, 1e sell to the consumer-as for instanc l. The United States Steel Corporation Id their output of rails and other tra, re material, bridge and structural shape d. This, however, would not be just oy it seems at first glance, as this corpor
 ton as well as almost all of the gre al combines are made up of a number he unit companies, and intercompany des ed ings should of course be treated as tur
 overs or sales.
 lg It is also objected that the turnov or tax would be pyramided or accumulat to many times from the sale by the pr te ducer of the raw materials down throu he the various, and in many instanc, i great number of processes involved in
 assembly and completion as an artic
 ready or fit for use or consumption.
 Grant that this tax is pyramided en accumulated, to what would it amour n- Take for instance a pair of shoes
 which is made of such a great varie nd of material. each of which is subject h. to very many processes. It is made Is, leather which from the hide of u