Evening star., 1937-06-20
Il Purchasing Bill
Continued From First PAse)

q
Continued From First PAse)
have had opportunity study It, to raise the
prices and clothing
specific forecast simple reason
that until
not be available for the general public.
One amendment Of the bill.
retained in the Senate version Of the
effect the continued chain Washington
tax Iousianaupheld the United
brought the statement from that
stores would be withdrawn from the State.
Tax Admittedly DESIGNED to
Chain Stores Under Handicap.
No predictions
yesterday place
under competitive handicap
them operate there little doubt
fight the amendment to the limit.
Is this Business the District
Opinion to differ But
is discussed form of sales tax publications dealing
taxes in the States there little doubt that
is certainly classed sales tax.
There difference receipts
and the sales tax that padn pennies tokens
vcesby the consumer for each taxable transaction The latter ia
plainly retail sales But the paid
source passed the
ing and in the sale Of other commodities where
And as such it becomes
Experts Have Called District IA
"Vhous Its Effects"
The District tax been by
studied it as crudy drawn and vicious effects
Why
The furnished attempt
the District
be taxed dealers generally speaking
exceptionally high volume of though the profit
be small
The District tax bill does
the wholesaler per cent along
other forms
What do
West Virginia
hundredhs Washington Indiana
Of per cent Delaware. one-tenth per
The District wholesalers
the States and the only which applies the
salers that is applied to all other lines
WOu the be in e6ect
Advantage Is Seen for Wholesaler
In Moving to Nearby State.
That another problem be answered after
thorough study But the prediction
wholesaler doing large volume try
escape payment of the tax by moving Maryland
such States either
in Maryland Virginia would enjoy
in selling to retailers
Through the existence types
taxed under the BILL pointed
that the bills provisions would lead the
abuses-that i the pyramdng" Of the
The wholesaler charge price his tax
while the retailer will add his tax the article and
the
While the difficulty of suggested by tn.
fact that the higher the higher
higher the pass on
Example Is Showing Ease
OF Passing Tax
Suppose tax on that transaction
would be so Suppose the dealer
adds 81 to the price Of the 500 article
leaves the dealer extra profit that
of the idea, easily is passed on
Returning to the prime defect all types
businesses.
The States apparently have grading
according to the nature of the
Virginia from is cent for wholesalers
natural Other include: limestone
stone timber Is
processing excluding electric poUer 3 cent Of
manufactured shown by
retailers.
complete o enough to indicate
the variation.
Exemptions in Proposed District
in
exemptions than the States
which have receipts
For instance Arizona gasoline that already
additional deductions allowed
freight charges
Indiana exempts certain
exemptions for labor agricultural fratern
other nonproht making mutual organizations
examples could be cited at length Of
Nearby Virginia has "occupaonal license
and retailers: For wholesalers
additional 500 thereafter For the Virginia selling
worth Of goods the
in the District the be $500