The Mena weekly star., 1921-04-14
SALES TAX PLANNED. TO RAISE REVENUE.
Hill Leyying One Per Cent on Turn overs to Be Presented--Senator Shoot Says It Will Yield
 Billions Per Year.

Washington, April 10.--Tcxt of the sales tax bill to be introduced by Senator Shoot of Utah in the Sen ate tomorrow was made public to- night.
 The bill imposes a tax of one per cent on all turnovers with an annual exemption of $6,000, the effect of this heing to exempt smaller farmers and fradesmen. It has been estimated that the one per cent would yield more than $2.000. 100000 annually.
 In statement in behalf of the general sales tax plan Senator Shoot declares that it's advantages are ex- treme simplicity of assessment and collection allow tax rate applying uniformly on all commodities, and ab- sence of complicated features which makes it difficult for the taxpayer to know at any time what his tax liahil- ity is.
 Offers Alternatives.
 While the bill as it will be intro duced provides for a tax of one per cent Senator Shoot indicates that the rate might be limited to one-half the one per cent or other alternatives might be adopted. In his statement he proposes three alternative proposi- tions, as follows:
 A rate of one-half of one per cent but not to exceed one per cent. on all sales without distinction of inte- grated or unintegrated concerns.
 4 rate of three-fourths of one per cent, but not to exceed one-haf per ent, with a credit for taxes previously paid on goods bought for resale.
 A rate of one per cent, but not tc exceed two per cent, without distinc. fion of integrated or unintegratee concerns, but exempting each dealer on the first $50,000 of annual sales.
 Selects First Plan.
 For simplicity of administration and collection of the tax, have con cluded to support the first named plan, and for the purposes of this bil said Senator Shoot. If at any tim, the amount to be raised from such ta, is to be reduced or increased the onl, amendment required to the law wouls be to change the rate of tax
 s'The bill follows closely the pro visions of the Philippines sales tax which today is the most satisfactor, tax to all classes and the most pro ductive that is imposed in the islands.
 Merchants and others making sale subject to the tax would make quar ferly payments to the governmen under the terms of the bill which ex empts sales and leases made by tn United States government, states an, municipalities, foreign governments mutual ditch or irrigation companie and hospitals and other corporation organized and operated exclusively fo religious, charitable, scientific or edu cational purposes, and also goods sol or leased for export
 Ne Double Taxation.
 The sales tax does not apply to bev erages, cigars and tobacco on whicl taxes already are imposed by title VI and VII of the present revenu act. It does not apply to few com modities on which there is now al excise tax and which is not repeale' by the bill, such as automobiles. auto mobile trucks and wagons, motorcycle and tires, parts and accessories. yacht and motorboats
 Senator Shoot says that the turn over tax will be shifted to the ulti ante consumer but he contends tha the final increased price of a com modity which has passed thru half dozen hands will not be more thai 31 per cent. He refers to Depart ment of Justice investigation in tn,