Evening star., 1932-06-18
TAX BILL EFFECTS
0NPROF|TS SHOWN
Some Imposts Will Be Passed
on to Consumers-SaIe
Prospects.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June l8.-How the new
tax bill will affect corporation profits is
analyzed as follows by the Standard
Statistics Co. of New York:
Automobiles per cent impost
on passenger cars and per cent on
trucks, will doubtless be passed along
to consumers, as was the case formerly
when this tax was levied.
Chewing Gum-The 2 per cent tax
will probably be borne by retailers.
Ccpper.-The impost of cents per
pound on imports will serve to shut out
foreign low-cost metal from domestic
markets Steps are being taken where
by metal ordinarily refined in this
country can be imported under bond
and re-exported free of duty, avoiding
the need Of new refining facilities out
side of the United States.
Matches-Tax of 2 cents per 1000
(12 cert per 1000 paper matches) will
probably be distributed between manu-
facturers and distributors, with the re-
suit that profits would be affected only
slightly.
Mechanical Refrigerators-The S per
cent tax will amount to much less than
recent price reductions by leading
manufacturers. and can probably be
passed on without materially restricting
sales.
Motion Pictures and Theaters.-TaX
Of 10 per cent on admissions over 40
cents will undoubtedly serve to curtail
box office receipts in some measure,
although the average price Of admis-
sion to movie houses is only IS cents.
Petroleum Products-Tax of l cent
per gallon on domestic sales of gasoline
and cents per gallon on lubricating
oil probably will be passed on to the
consumer, with little adverse influence
on consumption. Import levies OF 2l2
cents per gallon on gasoline. cents
per gallon on lubricating oil and Il
cent per gallon on crude and derive lives
other than those first mentioned are
likely to restrict imports and result in
shifts in the international markets.
Pipelines-The tax of 4 per cent OF
the amounts charged to shippers would
curtail net earnings Of pipeline COM
panies.
Radio.-Tax of per cent on pro-
ducers' sales of receiving sets Will re-
strict profits.
Soft Drinks.-The tax of cents per
gallon would amount to y cent per
quart, or "a cent per pint. Soft drink
sirups will be taxed cents per gallon.
Added prices could be passed along 10
jobbers and dealers in most cases.
Tires.-The 2L4-cents-a-pound tax on
castings and 4 cents pound on tubes
will be passed on to the purchaser, ac-
cording to present opinion In the
trade, in the form of slightly higher
prices, so that present low profit mar
gins will not be further curtailed.
Toilet Preparations and Domestics:-A
tax of 10 per cent is levied on produc-
ers' sales of all articles, excepting mouth
washes. dentifrices and toilet soaps,
upon which the impost is per cent.
Manufacturers must absorb good por-
ton of the tax.
Utilities Of per cent OF the
amount billed for consumption OF cleo
trical energy will be paid by domestic
and commercial users: industrial power
sales are exempt. The charge Is not
expected materially to AFFECT demand
for current. Telephone. telegraph ana
radio communications concerns, how
ever, are more seriously affected. Tele-
phone calls costing between so cents
and 81 will be taxed 10 cents; calls
costing 81 to 50 will be taxed Is cents,
and calls costing 81 or more will be
taxed 20 cents. Telegraph dispatches
will be taxed per cent Of the amount
charged. and cable and radio messages,
10 cents. While 1t can logically be
argued that the more urgent messages
will be sent regardless Of increased
price, it is likely that some business will
be lost.