The New York herald., 1921-05-29

Special cable to THE New YosK HERALD.
Copyright, 1921. By THE NEW YORK HERALD.
New York Herald Bureau,
Paris, May 2S.
France being one Of the two coun-
tries which has experimental with a
sales tax such as has been under ais
cussion in the United States, ths
American people might be interested
to know the result of the French ex-
perience in this connection. The tax
has worked badly here. according TO
both the Government and the man
who pays the tax, but how much this
Is due to the inefficiency Of the French
tax machinc-s, which is notorious, is
a question.
The French sales tax has shown
itself as exerting a disastrous and
paralyzing effect on business gen
orally. and 1t is only a question OF
time until 1t will have TO be super
seeded by more rational method of
raising money, such as an increased
levy on salaries and other incomes"
This statement was made to a CORE
day by GulIlaume de Tarde. State coun-
sellor and adviser to Lucian Dior Min
lister of Commerce. NJ. de Tarde IL
considered one OF the best tax experts
in France. AS ne indicated the tax is
SO disappointing in results here that its
repeal Is almost certain as soon as the
Government experts determine on an
alternative policy.
u
Meanwhile Parliament is considering
for the fourth time new series OK
amendments to the measures which are
designed to stop the gap until another
tax system IS devised. Regarding the
operation of the tax, NJ. de Tarde said.
Never before has France devised
tax which was received SO badly by
both business firms and the public. the
| former because of the inquisitorial in
spection methods which are necessary
to prevent wholesale discrimination in
accounts and the public because OF the
tendency OF the business men TO throw
the burden, wherever possible. on the
purchasers rather than on their own
business profits. IL is impossible TO col
lect the tax without having Government
agents making the closest scrutiny of
business records. 1t is also impossible
for French finances to support such an
army of functionaries as this would
require, and al the tax therefore is left
to the honesty OF merchants and pro-
ducers, who merely sign monthly state
ments of their sales total and pay to
collectors. there Is consequently much
danger of the records being arranged to
suit the taxpayers purposes 1t is un-
questionable that the tax is passed on
to the consumer in a majority of cases
This was particularly true recently
when the public expected prices 10 fall
and found that their failure TO do so
prices asked In many cases, as was
frankly explained were maintained
by the sales tax. The result was that
tho buyers strike became worse than
ever. reducing greatly the amount OF
business done and producing great
dlminution in the tax returns. as COM
pared with the estimates. IL Is certain
that less intricate and more collect
ible method must be found. The only
solution OF the problem now present
ing itself is the increasing OF tho tax
on incomes. although this would ar
feet the public Just as visibly as does
the present tax, and because OF the
present high rates on incomes an in
creased levy probably would arouss
great opposition. But France must
have money, and as the sales tax sys-
tenn has not satisfied any one tie law
will have TO be changed"