New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1921-09-30
3 PER CENT. SALES
TAX IS PROPOSED
Senator SmOOt Suggests Levy on
Manufacturers
EXEMPTION FOR One YEAR
During This Time the Proposed Tax
Would Not BE i'm Effect on Sales OF
Less Than $4,000 Per Year, Thus
Avoiding Confusion.

Washington, Sept. So.-A manufac-
turers sales tax of three per cent was
formally proposed to the senate to-
day by Senator Smoot, republican
Utah.
The senator explained that this
would be in substitution for AL of
the various war taxes, the excise taxes,
luxury taxes, stamp taxes, capital
stock tax. transportation, telegraph
and insurance taxes. the taxes on
soft drinks, ice cream, cosmetics, adj
missions and dues, and all of the
other "57 varieties OF obnoxious.
discriminatory forms OF taxation
which would be repealed on next jan
uary 1, under a series OF amendments
to the revenue revision bill offered
by the senator. Repeal OF the excess
profits tax as OF last January 1 In
stead OF on next January as planned
by both the house and the senate fl
nance committee also was proposed
nv Senator Smoot. Under his amend
ments the corporation income tax
would remain at ten per cent but
there would be no change in the pres
emit tobacco. liquor and Inheritance
taxes.
The sales tax amendment said:
Three Per Cent Levy.
THAT in addition to all other taxes
there shall be levied. assessed. col
Iected and paid upon every commodity
manufactured or produced when sold.
leased or licensed for consumption or
use without further process of manu-
facture tax equivalent to three per
cent of the price for which such
commodity Is sold. leased or licensed;
such tax to be paid by the manufac-
turer or producer"
1T should be noted" said Sena-
tor Smoot. that as the tax is i'm
posed only when articles are sold for
consumption or use without further
process of manufacture that the tax
will be non-cumulative in effect and
will give the integrated business no
advantage over me disintegrated bus
mess. There viii be but one tax.
eff a commodity Is sold for con-
sumption or use in a further process
Of manufacture no tax will be i'm
nosed. For example crude oil sold
for fuel would be taxable but IL sold
10 a refinery for the making OF gaso-
line or like commodities would not be
taxable.
$4,000 Exemption.
In order TO avoid administrative
difficulties with small sales the bill
provides for an exemption of all sales
OF less than 5000 during one year.
This will exclude about one per cent
of the manufactured goods in the
country according to the census of the
manufacturers. 1t will practically ex-
empt all the agricultural products
since the aggregate value OF products
cf farms for this year has been esti-
mated by the department of agricul-
hut
~ most agricultural products would
find their way into manufactured pro-
ducts. they would be exempt anyway
u.der the definition OF the tax.
Provision is made for a like tax
upon similar imported comodities so
that there can be no discrimination
q gainst Aerican products.
The yield of this tax has been
carefully estimated and approved by
ore of the foremost economists in
the country, Prof. Charles J. Bullock
OF Harvard. to produce during the
calendar year 1922, s759,756, 900.
Conservatism has been exercised
throughout this estimate. The yield
will undoubtedly be close to $1,000 |
600. 900 but the figure given is more |
than ample to provide the revenue
hich will be lost by the repeats |
which I propose.
81 want TO see a real revision OF our |
tax laws and not the perpetuation. in |
times OF peace. of revenue laws which |
were devised under the emergency of |
war.
IL want to see a return OF pros
perity for the American people and |
believe we can bring IL through the |
enactment of a proper tax system"
IL believe that these amendments
will accomplish the desired result and |
know that the people throughout the
country are of similar belief from gen
c nj approval which the plan has re-
cc!ved."
u. y. TREATY RATIFIED
Berlin, Sept 30.-CBy the Asso-
nIntnd PrnmaA-Thn RnIchatar 70