Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-09-30

cont was formally proposed to the
Senate today by Senator Smoot.
Tnc Senator explained that this would
be in substitution for "nll Of the vari-
Gus war taxes. the excise taxes, luxury
taxes. stamp taxes. capital stock tax,
transportation, telegraph and insurance
taxes. the taxes on soft drinks, ic"
cream, cosmetics. admissions and dues.
rnd all Of the other 'fifty-scv varic-
tics of obnoxious. discriminatory
forms Of taxation which would be re-
pealcd on next January | under the
series of amendments to the Revenue
Revision Bill offered by the Senator.
Repeal of the excess profits tax as OF
last January l, instead Of on next
January l, as planned by both tn"
House and the Senate Finance Commit
tees, also was proposed by Senator
Smoot. Under his amendments the cor
pOration income tax would remain at
10 per cent. but there would he no
change in the present tobacco, liquor
and inheritance taxes.
Text Of Amendment
The sales tax amendment reads:
That in addition to all other taxes
there shall be levied. assessed. collected
md paid upon every commodity manu-
factured or produced, when sold, leased
or licensed for consumption or use with =
out further process of manufacture. Il
tax equivalent to 3 per cent of the price
for which such commodity is sold, leased
or licensed; such tax to be paid by the
manufacturer or producer.
1T should be noted said Senator
Smoot. that as the tax is imposed only
when articles are sold FOR consumption
or usH without further process Of man
ufaCture' that the tax will be non-cu
mulativc in effect and will give the inte-
grated business no advantage over tho
disintegratcG business.
] There will be but one tax. IL i
commodity Is sold for consumption 81
use in further process of manufac'
/ ture no tax will be imposed. For exam
pie. crude Gil sold for fuel would b,
| taxable. but If sold to n refinery for
the making Of gasoline or like commodi
ties would not be taxable.
'In order 20 avoid administrativ,
difficulties with small sales the bill pro
vidcs for an exemption of all Snles o'
less than $4,000 during one year. Thi'
will exclude about | per cent of tho
manufactured goods in the country. ac.
! cording to the census of manufacturers
Z i
cultural products, since the average
value of products of farms for this ycal
has been estimated by the Department
Of Agriculture at between $1,000 ant
$2OOO, but as most agricultural prod
ucts would find their way into manu-
featured products. they would be cx
empt anyway under the definition Of th'
tax.
Levy on Imported Commodities
"provisinn is made for n Ike ia,
upon similar imported commodities 80
that there can be no discriminatiCI
ngain't American products.
''Thc yield OF this tax has been care
fully estimated and approved by one o
the foremost economists in the country
Prof. Charles !. Bullock, nf Harvard
10 produce during the calendar yea
1872 $50 756. 900. Conservatism I'M
been exercised throughout this esti
mate. 'rhe yield will undoubtedly b.
close to 81 .O0G. 600. 900. but the hgur
given is more than ample TO provide tn
revenue which will be lost by the re
rcals which ] propose.
Il want to see q real revision of on
tax laws and not the perpctuntion il
times oi pcacc Of revenue laws whiCI
were devised under the emergency o
war.
II want TO see return of pros
p"rty for tie American people and be-
jirvc we ran bring it through the enact
mcnt Of proper tax system.
Il believe that these amendments vii
accomplish the desired result and
know that the people throughout thi
country ire of simiar belief, from gen
cral approved which the plan has re-
rrircl ~