The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-01-14
POLL TAX IS THE PLAN
Persons Over q With In
come In Provision
REVISION FEDERAL LAWS
Commission of National Retail
Dry Goods Association Files
y Program
PAGE THREE
Associated Press Dispatch.l

tASSOcidLeQ FreSS D1SpaUCN.J
Washington, D. c., January ga
comprehensive program for revision
of the federal laws estimated to
yield annual the $4,000, 100000 which
Secretary Houston has said the treas
ury required, was filed today with
the house ways and means commit
tee by the tax commission Of the Ma
tional Retail Dry Goods association.
The plan worked out by the trade
organization contains several propo-
sails not heretofore advanced, includ
ing the assessment of a federal poll
tax Of S. on each person over twenty
one years old, who receives an indie
pendent income.
Income Tax Exemptions.
Income tax exemptions, it is pro-
posed, would be raised from 1000 to
$4,000 for unmarried persons and at
from $4,000 to $1,000 for heads of
families. All business would be al
lowed an exemption Of $4,000.
Other features carried in the pro-
gram, which was approved through
referendum of the organizations g.
900 members, provide that:
Income from salaries, wages, bo-
muses., and commission should not be
taxed at so high a rate as income
from business and investments. In
come derived from business, whether
individual, partnership or corporate,
should be tax on the business itself
and be subject to no additional tax
when distributed to partners or stock
holders.
All other incomes including profit
from the sales of capital assets
should be taxed at higher rate, than
income from business and In still
higher degree than income from man
ual or mental efforts
There should be a tax on gross
sales of all goods sufficient when add
ed to all other taxes proposed in the
program and including custom re-
ceipts to aggregate the required $4,-
Eliminate Excess Profits Tax.
The program would eliminate from
the present revenue act the excess
profits tax, surtaxes on individuals,
taxes on transportation, insurance,
admissions dues, and on non alcohol
ic beverages and special and capital
stock taxes, stamp taxes, and certain
excise taxes.
The normal income rate would be
fixed at four per cent on the first $4,-
600 above the exemption. While the
remainder would be subject to a tax
of eight per cent and no surtaxes
would be levied.
Income from business institutions
would be taxed at ten per cent on
amounts above the exemption. In this
connection in accordance with TIE
statement by the association, officials
explained that distinction has been
made in their program between manu-
al or mental efforts and the results of
business investments, the latter being
required to bear the heavier burden.
All other incomes including "un
earned" or investment income and
profits would bear surtaxes ranging
from one per cent on incomes from
100000 to $4,000 to six per cent in
comes in excess Of 100000.
Estimate Of Revenues.
Estimates. compiled by the associ-
alton committee placed the revenue
from the five dollar poll tax at $50
100000 annually. From income taxes
of all kinds proposed in the plan, i;
was estimated the revenue production
would be approximately s1,S23. 000,-
600. Customs receipts were placed at
$3.50, 100000 and the sales tax whicn
for one per cent would yield $1.816,-
1000.
Customs receipts, however, were
calculated on the basis of the present
revenue act and did not take into
consideration the contemplated
change, now being worked out by the
house ways and means committee.
Likewise the estimate of collec-
tons from the sales tax was said nv
the association representative "to be
very conservative" and they predict
ed that one half of one per cent NAV
be ample to raise the revenue needed
to complete the $4,000, 000, 900 budget.