Evening star., 1932-06-26
TAX COLLECTIONS
FORU. s. TREASURY
MADE BY SELLERS
Manufacturers to Decide in
Most Cases Whether Con-
Sumer Must Pay.
BY JOHN Y. MILLER,

All kinds Of questions are being raised
by the general public about the new
Federal taxes Manufacturers, importers,
/ bankers and business men chiefly and
directly affected know what is required
of them, but many an average citizen
apparently still is wondering who pays
these levies and how.
Follows Canadian System.
The new excise taxes are what is
left of the so-called sales tax which
was debated so long and bitterly before
being rejected by both the House and
Senate The sales tax program was
modelled upon the Canadian system
which calls for the payment of only
one tax upon particular article. With
certain exceptions. that idea remains
in the law as enacted, and as a general
producer or importer That does not
mean that the seller can not pass the
tax along. providing it is eXpedient for
him to do so as matter OF sales policy.
The manufacturer of mechanical re-
tax of 5 per cent on each sale. If he
increases his price by the amount OF
the tax, he has passed it to the con-
sumer Due to competition and various
other causes 1t may be impractical to
do this, in which case the manufac-
turer must absorb the tax himself.
With this phase of the situation, the
Government has nothing to do.
Let us see who it is that is pri-
marily responsible for payment of the
various new taxes:
The import taxes on oil. coal, lumber
and copper are collected from the i'm
porter in just the same manner as the
tariff Here again. as in the case OF
the manufacturer. the question oil
whether prices shall be raised to cover
the tax is a matter Of sales policy.
For some reason which no one seems
able to explain. the excise taxes on
lubricating oil brewers wort and grape
/ concentrate were put in the same sec
ton as the tariff items. The Revenue
Bureau has decided that in cases where
such items are imported, the tax will
be collected Immediately as part OF
the tariff, whereas in the case Of other
imported items, such as automobiles.
refrigerators, etc the importer will not
be required to pay the tax until ne
makes a sale.
In the case Of the following items
the tax will be imposed upon the
manufacturer or importer when the
article is sold; Tires and inner tubes
toilet preparations. furs. jewelry. au-
tomobiles, radio receiving sets, nechanl-
cal refrigerators. sporting goods, fire
arms, shells and cartridges, cameras
matches, candy, chewing gum and soft
drinks.
The tax on electrical energy is pay
able by the consumer. but must be
collected for the Government by the
electric company, which is authorized
to put it on the consumers bin.
Gasoline Taxes.
The tax on gasoline is payable by the
producer Due to the fact that most
producers sold great quantities Of gas
oline, In some cases to their subsidiary
selling companies. before the law went
into effect an attempt is now being
made in Congress TO impose this tax on
dealers having more than a certain
amount on hand when the law became
effective
The tax on telegraph and telephone
messages is payable by the person who
pays for the message. but collection Is
made by the communications company,
which RENTS to the Government. The
same scheme is used for collection Of
the tax on leased wire and talking
circuit service.
The tax on checks is collected by the
1 bank on which drawn. which is au-
thorized to charge the drawers ac-
count No change is made in the stock
transfer tax, which, as heretofore, is
paid by the seller
The admissions tax is payable by the
| person purchasing the admission, but
| is. of course. collected by the theater
! or other place of amusement.
(CopyriRht, 1922