The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-03-31
DIFFER OVER
VARIATIONS
IN SALES TAX
Simplest Proposal Is To Have
Merchants and Manufacture
ers Count Up Gross Sales
Pay | Per Cent.
BACkERS ARE TIMID
nv wARK SULLIVAN
ACrryNy~r>Ay nEI %

WASHINGTON, March 81 - Away
from washington you hear much
about the direct sales tax. In Wash
ington If you want to learn the status
Of this proposal, you must search for
II. The business men and others
throughout the country who have been
advocating this new proposal for more
than a year have not made as much
progress with congress as they believe.
There are many among the leaders
who believe thoroughly in the sound
ness of the proposal but in every case
belief in its soundness as a matter
of principle is greatly tempered by
timidity about it's expediency as a mat
ter Of politics. Again and again you
hear the expression, II believe in it
thoroughly. but l doubt if we can get
1t through congress"
The radicals and congress and all
who follow the leadership of LaFoll-
cite are much more completely crystal
lied in opposition to the sales tax than
anybody else. The college economists
among the treasury experts are oppos-
ed to it.
Flat Tax.
Stated in its simplest terms, the
proposal is to put a fiat tax of l per
cent on everything that is sold. Every
merchant, manufacturer and other
business men at the end of each month
would count up his gross sales for
the month, make ont a check for 1 per
cent Of the amount and mail it to the
government. This is the proposal in
its simplest form.
Among the advocates of it and
among the senators and congressman
who are considering it here there are
multitude of variations and exemp-
tions. Some would and some would
not tax. In addition to the sales of
commodities, the sale of services also.
which means salaries and wages. Some
would exempt all farmers, some would
exempt everybody whose gross sales
in year less than $4,000; some would
make the exemption as high as $40.
600. Some would and some would not
exempt occasional isolated sales, like
the sale of house or farm. Some
would and some would not exempt
the sale of securities by brokers.
Estimates Vary.
The estimates as to the amount OF
money this tax would raise vary OF
course. with the exemptions. Even
the estimates on the simplest and larg
est form of the tax vary. Some claim
it would raise as much as Sc, 1000, 900,
900. Some as little as $4,000, 900 900
If this tax would raise the minimum
estimate of $4,000, 900. 900, that would
be substantially half the total tax that
the government collects and would
permit large scaling down of the
present income taxes.
What the present status Of this pro
posal is among the 435 congressmer
WI
ing the summer will vote on 1t is i'm
possible to say. 1t is difficult ever
to say what the present status Of i,
is among the ten or twelve leaders
who presumably will largely dominate
the taxation program.
Leaders Timid.
These leaders have not yet made VI
their minds They have not though
deeply into the subject at all They
are still in the state where they dis
cuss whether to do anything about the
new proposal or whether to ignore i
entirely
Those who have gone furthest to
ward making up their minds in favor
of it do not in any case at the presen
date go further than introduce it ten
tatively or in experimental form
They say they can only get it through
by making it palatable to congress
They say one way to get 1t through
would be to pass bonus bill in favo
of the soldiers, and have the bonu
raised by this new form of tax, thu
making the new tax palatable b,
means of the appetizer of the bonus
The fact is. the new administration
and the Republican party do not hav,
a fiscal program yet, and have no
really put their minds on fiscal pre-
gram. The talk the public has hear,
and read about a fiscal program
The leaders have arrived at a Gel
tain amount of decision as to tn
order in which the various subject
will be considered by congress. The,
have given no organized thought 0
mutual discussion to the form whic
the legislation should take.
Copyright 1920 by the Ne York
Evening Post, lncl