Evening journal., 1921-07-30
TURNOVER TAX
IS FAVORED
National Chamber of Com
merce Submits Taxation
Program TO Congress
WOULD REPEAL
EXCESS PROFITS

Notification was received today by
the Wilmington Chamber OF Com
merce Of a vote by the membership
OF the Chamber Of Commerce Of the
United States in favor of a general
federal turnover tax on all business
transactions. The business organ
izations comprising the National
Chamber declared themselves for
this form OF sales tax in a referen-
dun that has just been completed.
AS a result Of this referendum and
a previous one on taxation, taken
six months ago. the Chamber has
submitted TO Congress a general tax
program, which includes the follow
ing proposals:
Repeal Of excess-prohts taxes.
Repeal OF war excise taxes. both
those on transportation and COM
munication, and those levied In re-
lation to particular businesses.
A tax on all turnovers 10 bring in
such revenues lost through these re-
peals as the governments necessi-
ties require.
Decentralization Of administra-
tion OF income taxation.
Ascertainment by the government
OF any tax based on income before
payment
A court or courts Of tax appeals
20 be entirely separate and indepen-
dent Of the Treasury Department
Net losses and inventory losses in
any taxable year TO cause redeterm-
ination Of taxation on income OF the
previous year.
An exchange OF property OF a like
or similar nature TO be considered
merely as replacement
Gains realized from tho sale Of
capital assets to be subject 70 lower
rates than incomes received from
business or other current activities.
Income from any new issues Of
securities. which lawfully may be
made subject 10 federal tax, 70 be
taxable.
Exemption OF American citizens
resident abroad from the American
tax upon income derived abroad an1
not rcmitted 70 the United States.
More than 500 business organiza-
tons voted in the referendum just
completed. A preliminary canvass
shows that the most general demand,
after a virtually unanimous demand
in the previous referendum for re-
peal Of he excess prohts tax, is for
repeal on freight and express
charges. passenger fares and Pull
man charges. and messag ges, that is
for an end 10 the war excise taxes
on transportation and communica-
tion. For repeal OF these excise
taxes there were 1.443 votes to 29o
votes against.
The various organizations are en-
titled to from one 10 ten votes. bas-
ed on their membership strength
The next largest vote is for repeal
of war excise taxes levied IN con-
nection with particular businesses
that is ranging from automobiles and
their accessories. through theatre
tickets. beverages. candy. jewelry
Insurance. wearing apparel, musical
instruments. ETC.. TO chewing gum.
The excess profits tax and the
excise taxes. the removal OF which
the Chamber urges have been esti-
mated 70 produce more than a bill
lion dollars in revenue. So far as
the governments necessities require
q replacement OF the revenue lost
through these repeals the voting
which has Just closed means that
the Chamber would have Congress
use a tax on all turnovers.
In voting FOR such a tax the Cham
ber's members had an opportunity
10 vote for an increase in the in
come tax on corporations. The re-
suit Of the balloting shows that they
decisively preferred the general turn
over tax.
The referendum which has just
closed was in effect supplemental e
the referendum taken in the winter
on taxation. The earlier referen-
dun was important in fixing tbs
Chambers position upon many ques'
tions but It did not produce a de.
finite result with respect to salei
taxes. A conclusion to discussion
among the Chambers membership
on sales taxes has now been reach
ed, with an unmistakable declaration
for a sales tax and with designation
Of the general turnover tax as th'
type that is widely favored.
on the issue between an increas'
in the income tax for corporation
and a sales tax. to take the place
Of the excess-prohts tax. the votinl
was clear cut in its indication of tn
point Of view that prevails amonl
the member organizations. Elevei
hundred and seventy votes were cas-
for the sales tax. TO IS for an in
crease in corporate income tax
Technically all OF these votes canno
be counted In the official canvass bu
their effect is not lost since the.
were correctly cast upon the ques
tions which followed and which de
termined the Chambers position.
On the form a sales tax should
take, 1142 votes were cast in favo
OF a tax turnover TO 395 for a tai
on retail sales. on the question a.
to which OF two forms Of turnove
tax should be used. there were 50.
votes for a tax on all turnovers. Z,
366 for a tax on turnovers only o
goods. wares. and merchandise.
In two respects the Chamber
present program differs from the po
sition II originally took" says
statement issued by the Chamber TO
day. I'm the referendum OF las
winter. there were 1.217 votes cas-
I'm favor Of excess taxes upon som
articles Of wide use but not OF IN
first necessity. and 5O4 against Their
were later some suggestions that
number Of organizations had errel
in marking their ballots. with a re