The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-11-13
It's Simple Operations
Being Realized By Men
Who Bear Annual Burden

by the manufacture, the per cont
YAK would bo levied. Thus only ON"
tax "a small would he passed
To the consumcr There would De
no pvramidipg of taxes under the
Smoot modified ysles plan.
Another instance. 4 farmer pro-
duccs wheat He pays no tax when
he Hclls that wheat To tho miller.
hut the miller, when he grindS the
wheat into flour and sells ~ to a
wholcFale grocer. VIII pay tho tax
but II he sells 1t direct to a baker
tho baker. and not the miller will
pay tho per cent tax on the bread
hr produces FOR the consumption Of
his customers. However. small
bakers would pay no tax because
the Smoot bill cNempts sales OF loss
than $4,000 y year
Where tile Farmer Pays.
There are few Instances I'm which
a farmer would pay a sales tax
II would be only the farmer who
farms on an unumslly large scale
who would bc touched in the least.
one ins.ancc would bc with n far
mrr who produces potatoes that W
II he " an unusually large producer.
Tie would pay the tax on tho pota-
toea he sells TO the groccrs. since
potatoes nro used as such by tho
consumer. However. he would
have TO sell $4,000 worth OF the
spuds within a year to be required
to pay the tax
The $4,000 exemption. together
with the fact that few farm products
are sold for consumption without
further process OF manufacture"
would mako the farmer practically
exempt from federal taxes except
/ tho normal income tax which all
citizens pay. Thu average produc-
/ tion OF the farmer IN this country
according to figures complied by tho
department Of agriculture, is valued
at between one thousand and two
thousand dollars, The tax under ths
Smoot modified sales plan. will fall
/ on nanufacturcra--tho manufaCt-
urer who actually completes an
article "for consumption uso"--and
/ the farmer and others will be prac-
/ ticnllyeNcmpt from this tax. Under
the Smoot plan the farmer. in
| practically all instances will not
only escape paying sales Tx but
he, In common with other citizens,
viii be relieved from the freight
tax which has been paid for the
transportation OF his products and
from n transportation tax when no
travels. lie, would escape other
such taxes as are now imposed 4
distinction Is made between ''scr-
vice" and consumption and use"
when understanding OF my
proposition comes. tho only person
who can object OF n manufacturers
and producers tax In the person
who is opposed 10 paying any tax
/ whatever" said senator Smoot In
commenting on increasing favor
with which his plan Is being re-
ceived.
Only "Passsnblc" Once.
once would of course be passed OH
to thu consumer Every tax a..
But The advantage .= that II can ba
passed along only once, since It In
levied only On the last sale TO tho
merchant or dealer who rs to put
il out for use or consumption. Tho
Smoot plan also has It's merits In
it, simplicity The present taxing
system calls for. so many interper-
tations that an Industry without tho
aid of several Philadelphia lawyers.
scarcely knows what It's tax bill Is To
be
Besides the $4,000 n year oxcm-
1 ptiun granted for each producer or
manufacturer. there Is an exemption
OF goods produced for export TO
foreign countries, II being held'that.
under the constitution. II is not pos
siblo 10 make a levy on such pro-
"eerVice" to the public. would also
be exempt from the sales taS--con-
Bumer3 would not have a sales tax
passed TO them when they pay their
electric light or gas bill. a distinc-
tlun is made between service and
Consumption and use"
While American made goods ex-
ported would call for no sales tax,
there would be an imposition OF the
a
to prevent any advantage To the
foreign producers and manufact-
Iurers which they might derive from
the levy OF such tax on American
producers and manufacturers II they
themselves were exempt from tho
tax when their goods come into
competition with the home product.
on the other hand American goods
going into competition with foreign
goods abroad would not be subject
to the tax, and therefore would be
able 10 compete without that hHndi-
cap.
p Under the present lave with is
Inequalities and discrimination,
: few manufacturers, such as the
manufacturer OF automobiles and
monographs. are singled out to pay
a special excise TAX. Under Smoot
. plan the sales tax, the excise ana
excess profits taxes would be re-
pcaled, and the tax would be dis
.tributod among all manufacturers ot
finished products. The SmoOt plan
has the merit OF fairness as well as
.simplicity. The excess protit tax
has been passed on to the consumer
I'M magnified form but with this
eliminated only one taxa small 3
per cent sales tax levied only on
one article and levied only once
instead OF being pyramlded-could
be passed To the consumer. The con-
aumer should benefit.
The sales tax In Canada ana the
/ Philippines has worked with narve-
lous success, according TO all re-
ports but the S.noot plan. say stu
dents OF taxation, IN even moro
simple than either the Canadian or
Philippine law.
"lt should be noted that the taS,
under my bill, Is imposed only when
articles are sold for consumption
| and use without further process OF
manufacture, the tax win he non
cumulative In effect. and will give
the integrated business declared
Senator Smoot
There will>,be but one tax II d
commodity is sold for consumption
or use In further process OF manu-
CONTINUED ON PAGE TWO.