Arizona republican., 1921-10-01
UTAH SENATOR PROPOSES
 MANUFACTURERS SALES TAX OF THREE PER CENT
rRepubIIean A. p. Leased wireJ

WASHINGTON, Sept. 3o.-Two separate tax programs as substitutes for most of the levy provisions in the pending revenue revision bill were presented today to the senate. one from the Republican and one from the Democratic side. Senator Smoot of Utah proposed:
 A manufacturers sale tax of per cent on articles as finally finished or produced for consumption or use,
 Repeal of all of the special war taxes of whatever nature, including the excess profits and transportation ievies.
 Retention of the existing 10 per cent income tax on corporations.
 Senator Smoot proposed no change in the committee plan with regard to individual income taxes or the ex- isting tobacco. liquor and inheritance taxes.
 Senator Simmons of North Carolina proposed:
 A graduated income tax on corpo- rations ranging from 121z to % per cent in lieu of the excess profits tax
 Restoration of the income surtax rates to maximum of 52 per cent on incomes in excess of s500.00e.
 Repeal of the transportation taxes nfreight. passenger and Pullman recommendations.
 Retention of the corporation capital stock tax.
 Repeal of the s2ooo exemption all lowed corporations.
 That individual exemptions be con- l fined to incomes below $20.000. Slight reductions in the normal rates on incomes below $20, 1000. Senator Simmons told the senate that if there could be an agreement for an equitable readjustment of the taxes so that the several groups of | taxpayers would be on a parity as proposed in the Democratic program, he personally would be willing to give serious consideration to a manufac- 1 turers' sale or consumption tax, prop erly safeguarded. as substitute for all of the miscellaneous taxes i'm posed under the present law. A manufacturers sale tax of 3 per cent was formally proposed by Sena- tor Shoot, Republican of Utah.
 The senator explained that this would be in substitution for ''al oi the various war taxes, the excise tax 1 luxury taxes, stamp taxes, capital stock tax. transportation, telegraph and insurance taxes, the taxes on soft drinks, ice cream, cosmetics. admis- sions and dues, and all the other '5i 1 varieties of obnoxious. discriminatory forms of taxation,' which would be repealed on next Jan. under a series of amendments to the revenue re- vision gill offered by the senator.
 Repeal of the excess profits tax as of last Jan. 1 instead of on next Jan 1, as planned by both the house and senate finance committee, also was proposed by Senator Shoot. Under his amendments the corporation in come tax would remain at 10 pei cent. but there would be no change in the present tobacco, liquor anf 1 inheritance taxes.
 The sales tax amendment read:
 That in addition to all other taxes there shall be levied, assessed, col sI lected and paid up on every commo- dity manufactured, or produced. when sold, leased or licensed for consump- ton or use without further process of manufacture, a tax equivalent tC three per cent of the price for which such commodity is sold. leased ol licensed: such tax to be paid by the manufacturer or producer"
 Tt should be noted" said Senator Shoot, that as the tax is imposed only when articles are sold for con
 sumption or use without further
 process of manufacture that the ta1 will be non- cumulative in effect ana
 will give the integrated business n' advantage over the disinteSr2ted bus | mess. There will be but one tax. l
 a commodity is sold for consumption
 or use in a further process of manu , fracture no tax will be imposed. Fo example. crude oil sold for fuel woul, be taxable but if sold to a refiner! for the making of gasoline or lik' commodities would not be taxable.
 ''In order to avoid administrative
 difficulties, with small sales. the bil
 provides for an exemption of all sale
 of less than S6.0O0 during one year . This will exclude about one per cen of the manufactured goods in tn . country. according to the census O r manufacturers. It will practical, l exempt all of the agricultural prod (Continued on Page Two)