The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-10-01
MARKED IMPROVEMENT BUSINESS CONDITIONS REPORTE
SENATOR SMOOT PROPOSES
MANUFACTURERS SALES TAX
Three Per Cent on Articles as
Finally Finished or Produced
for Consumption.

WASHINGTON. Sept. 20.--Two sep
arate tax programs as Substitutes for
most Of the levy provisions IN the
pending revenue revision bill were
presented today to the senate. ona
from the republican side and one from
the democratio side. Senator smoof
Of Utah proposed:
manufacturers sales tax Of three
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
levies.
Retention OF the existing ten per
cent income tax on corporations.
Senator Smoot proposed no change
in the committee plan with regard to
individual income taxes or the exist
Ing tobacco. liquor and inheritance
taxes
Senator Simmons Of North Carolina
proposed:
Graduated income tax on corpora
tions ranging from ia 10 to 25 per
cent tn lieu Of the excess profits tax.
Restoration OF the income surtax
to the maximum Of 50 per cent on In
comes in excess OF $500, 600.
Repeal of the transportation taxes
on freight. passenger and Pullman ac-
communications.
Retention of the corporation capi-
tai stock tax.
Repeal Of the $1,000 exemption al
lowed corporations.
That individual exemptions ba con
fined to incomes below $4,000.
slight reductions in the normal
rates On incomes below $4,000"
Senator Simmons told the senate
that e there could be an agreement
for an equitable read1ustment OF the
taxes SO that the several groups Of
taxpayers would be on parity as pro-
posed in the democratic program, he
personally would be willing to give
serious consideration to a manufac-
turers sale of consumption tax, prop
erty safeguarded as substitute for
all of the miscellaneous taxes imposed
under the present law,
The North Carolina senator ap-
pealed to parties to get together in an
effort to work out bill meeting the
requirements OF the present situation
and conditions.
Senator Smoot in presenting his
amendments, read a prepared state
ment IN which the sales tax proposal
was set forth as follows
That in addition to all other taxes
there shall be levied, assessed, collect
ed and paid upon every commodity
or produced, when sold,
leased or licensed for consumption Or
use without further process of manu-
facture, a tax equipalent to per cent
OF the price for which such commodity
il sold, leased or ncensedI such tax to
be paid BY the manufacturer or pro-
ducer"
1T should be noted" said Senator
Smoot, that as the tax Is imposed on
articles when sold for consumption or
use without further process of manu-
facture, that the tax will be non- Gu
mulative in effect and win give the
integrated basis no advantage oeer
disintegrated business. There win be
but one tax. II commodity Is sold
FOR consumption or use In q further
process OF manufacture no tax Will be
imposed. For example, crude oil sold
COR fuel would be taxable, but IL sold
FOR a refinery for the making Of gaso-
line or like commodities would not be
taxable.
sqn order TO avoid administrative
(contInusd on Page Twe.l