The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-03-26
THE SIMPLICITY TAX,

Declaring that the U. 8. department
of justice reports, after study Of the
present tax system, Its effects have
been to increase the price of the ne
cessities of life over 20 per cent" the
National Council of Travelling Sales
mems associations, representing d.
rectly and indirectly 100000 travelling
statesmen in the United States, has
undertaken a campaign for the pur-
pose of bringing about the adoption
of a tax on sales which it calls 1.-The
Simplicity Tax"
The title is q good one because
nothing could be simpler than this
plan for raising government revenue.
At the same time, nothing could well
be more complicated, unsatisfactory,
expensive, annoying and burdensome
than the existing income, luxury and
excess profits taxes.
The association holds that the sales
tax will remove the guesswork, worry
and uncertainty of the present tax
system. 1t will also produce the
needed revenue-about $4,000, 900, 900
annually.
The plan is to levy a 1 per cent tax
on all sales of services or commodities.
The amount of the tax can be readily
figured from the total sales each
month, and a check for 1 per cent
mailed to the federal government, in
case the total gross amount exceeds
$500 per month. If at the end of the
year the gross amount of sales is
less than $4,000, no tax is collected.
This provision exempts all small
farmers and practically every laboring
man-those least able to pay any sort
of tax. At the same time it will pre-
vent the present handicap to business
caused by the withdrawal of large
fortunes from industry and their in
vestment in tax-exempt securities
whereby such fortunes become en-
tirely exempt from taxation.
Every business man will know each
month exactly what is due the govern
ment and the amount will be so small
that it will either be absorbed lin his
overhead or passed along to the con-
sumner in the very moderate form of
a per cent to 81 per cent increase
in the price the public pays. Admit
teddy, this is a trifling addition as
compared with the increases in COM
modify prices encouraged by the I'M
certainty of the excess profits tax, the
sur-tax and luxury tax, which in some
cases are said to advance prices 40
per cent.
The American government has, in
the past, derived it's tax revenue al
most wholly from consumption taxes,
in the form of duties on imports, and
taxes on liquors and tobacco. OF ST.
100 100000 total tax revenue collected
during the Civil War over rs per cent
came from consumption taxes, while
in 1918 95 per cent of the govern
ment's revenue accrued from levies on
merchandise sold.
Here is unquestionable evidence
that the American people are not fac
ing any new problem in a sales tax
of per cent when year after year
they have been paying 35 per cent to
so per cent and even higher taxes IN
the prices of imported goods without
SO much as questioning the transac-
ton. A minimum tax of / per cent,
will liQuidate our enormous war
debts, and the American people will
forget their present tax worries and
be able to give their entire attention
to business.
The sales tax is bound to be met in
a straightforward, honest manner by
practically one hundred per cent of
the community. 1t cannot be avoided
and it is SO small that no one would
want to avoid it.