New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-05

'ne repeal OF the higher surtax brackets
would be relatively small, and the ult
mate effect should be an increase in tha
revenues II is suggested that the nor
mai and surtax rates be limited 10 81
eomnhed maximum rate not exceeding.
az per cent for the taxable year 1927
ana 30 per cent thereafter. / am CON
Noent tnat IN u short time the Treasury
would actually collect more under the
iowet rates than under the higher rates
II continued.
Repeal of Profits Tax
approve the repeal of the excess
paot,s 'ax' which is rapidly becoming
~ .upi ouuetlVe. suggest as a substi-
rate OF the corporation income tax ana
me repeal of the specific exemption nf
f-,voV now accorded to corporations.
ms would greatly simplify the
nfooiem OF administration and collec-
nue.
COLLECTIONS cf back taxes are esti-
mated to Weld net about s1S5 On0 NoO
IN the year 1922 and about $685.. 600 900
IN tie year 1928 1t NAV be sible
- secure some additional revenue from
S s',1S 49, SoV', SS perhaps as much as $780,
VVO,coo additional in the year 1922.
1T - suggested that the following
miscellaneous taxes be repealed or re-
duced:
"(a) The transportation tax on
freight and passengers. it is suggested,
might be reduced one half by January
/. 1922. aid repealed entirely at the
close OF the calendar year 1922 The
resulting loss Of revenue would be APP
proximately $S2,ooo,000 for the fiscal
wear 1922 and $3.50, O0O, 900 for the fiscal
Year 1928.
"(b) The taxes on ice cream and
fountain drinks imposed by section
$50. now collected from consumers in
such a way as to cause unnecessary
irritation and material evasion, should
be repealed. For similar reasons the
excess price taxes now imposed by
Section 904 upon articles of wearing
apparel hould be repealed, and the
other articles included under Section
904 should be faxed at appropriate
rates TO the producer or importer,
under the general provisions Of Section
900. The maximum loss in revenue es-
timated to result from these changes
would he less than $25,000,e00 in the
fiscal year 1872.
"tc) The tax on perfumes, cosmetics
and proprietary medicines (Seetion
s0D also results in unnecessary irrita-
ton and is widely evaded ! suggest
Queer or importer, as are most of the
sales or excise taxes now imposed by
the revenue act of 1918. This could be
done without any loss in revenue.
Additional Taxes Necessary
"Shrinkage in the yield OF existing
taxes, the gaps resulting from the sug-
gested reduction and repeal of the
transportation tax and the changes in
other taxes, and the pressure of eX-
penditures upon the Treasury, make
necessary the consideration of add
tional taxes. These taxes are, of
course, not sugge ;ted as desirable in
are less objectionable thsn some other
new or additional taxes which have
Been prepared:
''(a) Increase the documentary stamp
taxes by approximately doubling the
present rates, so as 10 increase the
revenue from this source by approx
mately 100000 for the fiscal year
1922 and $4,000, 900 for the fiscal year
1923. These estimated additional pro-
ceeds ere included in Table H.
"(b) The proposed stamp tax Ct two
cents on each check payable on sight
or On demand) would yield, it is be-
lieved, about S45,O00,000 wear. The
estimated proceeds of this tax have not
been included in the main totals Of
Table II.
"(c) suggest also, as a convenient
method of taXGtiOn, en- increase of one
cent in the rate of postage on first
class mail matter to 8 cents an ounce,
or traction thereof, on all eXcept drop
letters, and to two cents an ounce, or
fraction thereof, on postal cards. Such
a tax would yield, it is estimated,
about S72000,000 year (not included
in Table ID.
"(d) An annual Federal license tax
upon motor vehicles, averaging about
Sl0 a vehicle, and to be graded ac-
cording to power, would yield approx
imatcly 100000 a year, or about
S850DOo0O the first year (1922) of its
imposition. The estimated proceeds OF
this tax are included in Table IL.
Levy en- Tobacco
"(e) An increase in the tax on ciga-
rettes from 50 TO So thousand and
slight increase in the other taxes on
tobacco products would yield add
ticnal revenue of $25,000,000 in the
fiscal year 1922 and approximately
$67 900 in the fiscal year 1923 Gin
Guided in Table IL.
s'The foregoing recommendations take
into account probable reductions in
current expenditure for the fiscal year
1928, when, for example, it is expected
that there viii be relatively small pay
ments TO make to the railroads. as
against estimated payments in the fis-
cal year 1922 of S54500O, geo. Against
these reductions, however, it is ex-
rected that there Will be shrinkages in
receipts. The suggestion that the
transportation tax be repealed, eff
fective in part January l. 1922, and in
its entirety January l, 1928, would
alone involve loss Of revenue of about
S300,o00,o00 fer full year. 1t is also
necessary to bear in mind that the
estimated income and profits tax re
ceipts for the fiscal year 1922 include
two quarterly instalmcnts of income
and pro1ts taxes based on the business
of the calendar year 1920, and that q
substantial shrinkage below the 1922
figures for these receipts is to be ex-
poeted during the fiscal year 1923 as 2
result OF the shrinkage in incomes and
the depression in business in 1921.
Loan Due in 1928
''In the fiscal year 1923, moreover, the
Victory Liberty Loan and the 1918
series Of war savings certificates be-
come due. With these extraordinary
n.aturities of the public debt to meet
IL ia important that the Treasury have
some margin Of current revenue over
current expenditure for the year in or
Ger that the vast refuuding operations
which will have to be carried on during
the year in any event may not be com
plicated or embarrassed by additional
FlEf r.t-rs4