Show i P PROPOSED P E EI I TAX X Will CUTI U I I INTO I PR PROFITS Chamber of Commerce of United States Has Plan for Higher Levy on Many Luxuries to Finance r War WarBy ar arI I n By ll S I ASH ING JON FON July Tuly 14 The 14 The i Chamber I of Commerce o of or the I I United Sl States Slates the most representative I i thc tive institution of American I capital I I II has ask asked ell its members to indorse a I of taxation of program war embracing I i an nn excess profits tax lax of SO 30 Per pel per cent cent I taxes' taxes on lea coffee tobacco and beer i I I jewelry m musical instruments in and gas gas- oline iline The program r gr m represents the tile I l report port of or the thc special committee on financing the tho war ai nl The lh members ot oL ai ai Jol John n V V. V Farrell Chicago l dwardA dward A AIllene A. A Illene Boston P P. W W. Goetzel Kansas City John 11 II 11 Gray Minneapolis Stoddard dard dal loss os Los Los' Angeles laugh HUSh McK lcK Landon Indianapolis Robert J K 1 Maddox Maddox Mad Mad- Ia dox Atlanta John L. L Scott Houston Oliver M. M W W. Spra Sprague lIe C Cambridge Mass I ss Jesse Isador hador Straus Strau New York J. J K Orr Atlanta an and Edmund D D. Hurlburt and J. J Lawrence Laughlin Chicago The eleven cn specific recommendations of or the committee arc are That exemption allowed before the war taxes are Imposed should be he adequate adequate adequate ade ade- quate for Cor the tune safe SaCe condu conduct t of oC business enterprises and that p power tt er 0 o make a ad adjustments adjustments ad- ad that will prevent ent inequities should be he given Jhen to the tile administrative I authority under the tax law I That liberal al provisions pro for lor amon amortization tl- tl l I allon of pl plants u used ell on war work should be male made with opportunity for lor subsequent readjustment to correct errors cr- cr lors n OArd ikc l. l That there should he be a limited number number num num- ber her of or regional boards board ot of review e ap appointed appointed ap- ap pointed b by the administrative c authority author author- It ity and making recommendations upon app appeals als from Crom preliminary lY assessments That there should be equalization of oC federal taxes That in computing computing- taxable Income corporations should sho be he allowed cd to make two deductions Interest t and charitable charitable charit charit- charitable able gifts which they arc denied now no On condition that proper exemptions and opportunities for Cor adjustment are I allowed that a war profits tax should hould Ibe i be Imposed at a hl high h rate and und should be bc levied led when It would exceed e the e ex excess excess ex- ex I cess ces profits tax That upon the pres present nt general ba basis basis ba- ba sis it but with inequalities removed NI the excess profits tax tRl should hou be Increased That rates of or Income taxes should be he Continued on Page Pase 2 PROPOSED TAX TO CUT INTO PROFITS Continued ed From p Page Pago c 1 1 Increased and unearned d incomes should be taxed t at least HR as much as 11 Heavy taxes on a n few articles of or PI fali con consumption lreA Heavy a selected list of oC lux lux- uries urlee Heavy r taxes on a selected list lIt of oC war war a extravagances Eight h The report urges that at nt least he raised bj by taxation In tho the coming corn com in lug ing year eRr It Il I Is ha Important says the thc committees committee's committees committee's commit commit- tees tee's report In considering present taxation tl to remember that the tho heavier tho the taxes which nr are now Imposed the time themore more rapidly can taxation bo d decreased after the war and time the more nh advantageous advantage e- e Otis ous tho the of or our country will be beIn bein beIn in that period of or keen International commercial competition h 11 countries coun- coun tries s th then n bearing heavy r burdens of or IY I Ill It-Ill I. I It r. V. j I I u u u en At t 5 present t. t hO however cr la laola favorably ola bl tho the ratio of or our ts ta s to our expenditures expenditures expendi expendi- tures compares s with the tho ratio r o of oth other r countries In such countrIes as s England Eng n.- n. land the rates rateR of or tax are arc arcery very ery considerably considerably consid consid- higher than our rates After declaring that Clint the present ex excess ex- ex cess profits tax I Is apparently efficient nt in ill han handling tour fifths of or the nations nation's business concern thus thins permitting profiteering prof prof- In one fifth of or the business world orl time tho report says For lor this thil r reason aRon It is proposed to en enact enact en- en act a war t profits tax with tax with cx exemption mlton of or a n. fair air return ns as earned on capital or 01 turnover er of ot sufficient spread ct ag ns a fair tail fairand fairand and equitable lc basis but hut with a n very high percentage of ot the excess turned turnell over o to the go government In taxes This would not b be additional to the existing excess profits tax hut but In each case one or time the other would apply accordingly accord Ing as the result In lii taxes would be greater V Ve eo suggest l the thic desirability of oC maintaining the thc general basis bals of or the present excess ss profits tax but hut with ItI In Increased increased in- in creased rates perhaps as high hiSh as SO Sm SOper SOper per cent of or the lIr present sent GO CO per Iler ce cent n t. t Mufti Iu aPor a For Por th this purpose of or enforcing reduction reduction tion lion In lIne unessential Consumption and economy which I Is II hy lay all alJ students o of war finance denned deemed of or vital Importance tance on certain articles of or F gen gm- general n- n eln eral consumption and taxes xee on oli a va variety variety va- va arlet of or articles of ot luxury UI nr are pro- pro lO posed os d d. d There J I-J a J. J threefold purpose In n these taxes the time first t o obvious olous lous Purpose purpose pur Pur- pose poe is to secure nr revenue re the second 19 is that taxes will vill 1 Sull In less waste want b by Inducing a more economical use of or commodities thus ll taxed anti and result In lit a greater margin m of ot earnings over o expenditures which savings pa can be Invested In In Liberty bonds th th third thin purpose I Ito Is Isto Isto to reduce demand domand for or articles thus thu taxed so 10 that materials equipment and l labor abor which otherwise would be employed cm- cm plo e to produce these thee commodities naturally will vill turn toward more es essential essential es- es employment The suge suggested ted consumption taxes In Include In- In dude chide tea 20 o cents a pound coffee R cents a pound so 50 cents a pound beer 10 IO a barrel a moderate tax on gasoline is s l suggested As s a subject for or discussion and comment comment com corn ment from the m members of or the organization ors nl the committee put forward economy bonds bondE An extra Income tax I of or about 10 per cent is II suggested ested A I taxpayer could avoid payment of or the super income ome tax h by bu buying three or four our times Its amount in economy bonds These bonds would be rable and Inell Ineligible for rediscount at arcero a a. reserve o bank or other institution I |