Show New Scheme of 0 Taxation rp HERE is much truth in the statement of Elihu Root T J- J in a recent speech that the present federal tat tax laws were passed d by men who had suspicion and dislike for successful business A revision of income tn taxation is isone isone one of the problems of the hour iud and Congress from Various various various va va- rious e expressions of its members realizes it but has not yet systematically attacked the subject A tax on sales of all commodities and real estate I to make possible the tho elimination of tho the excess profits ta tax and abnormal business taxes and the reduction of the tax on incomes by Otto II H. Kahn in in a pamphlet entitled Two Years of Faulty Taxation and the Results which has recently been published TIe lie ts a revision of income taxation on the tho theory that the emphasis of taxation be placed l on expenditures rather than on incomes income lie He believes belie that under the present system much of the burden is shifted and that is by the consumer inthe inthe in inthe in iner er very many cases the tax paid the increased cost of oC living He argues that the tax on sales will ill mal make e the burden burden bur bur- bur burden den upon the consumer lighter and proposes propose a n tax varying varying varying vary vary- ing in its scale from 1 per Jer cent to 10 per pel cent or even en 20 per cent on all single purchases above 2 the tho percentage percentage per per- progressing according to the value of the article purchased He believes belie that so far as The iho principle of such a tax is concerned a great majority of the men business or small would welcome it engaged n t ed in large To the possible objection that such a tax is passed on onto to the consumer Mr rr Kahn replies that so o is the bulk of the excess profits ta tax and so in the end is practically every business tax lax l. l And the tho burden on the consumer consumer con eon sumer umer ho hu says says is 4 is is always cumulative inasmuch as almost every ery article before it comes to him passes through several se different in tho process of conversion from the raw material to the finished article on sale and each cach one of those concerned in that process process process pro pro- cess seeks to add to the price a proportionate percentage percent percent- age to cover cover fo his taxes tases at least in part confidence that the Mr Kahn expresses ses tho the utmost sales tax would aggregate a much smaller burden by the time it reaches the consumer than our prevailing pre array of taxes It would weigh far more lightly on the rank I and aDd file fHe than do the results ts of our existing taxation As to revenues re he gives it as his l s opinion that a trifling tax tas on sales on the huge volume oC of commodities ties changing hands annually would yield so vast a sum i that it would enable the excess profits tax and aid practically cally all other abnormal business taxes except perhaps per per- Imps haps the corporate income ta tax to be eliminated surtaxes surtaxes sur sur- taxes on individual incomes to be greatly reduced and md federal taxation of incomes up to to be abolished altogether It would also have the advantage of re reaching reaching reach reach- ching ch- ch ing those who now escape income taxation by investing in tn tax exempt securities Mr MiS r. r Kahn has evidently given a great deal of thought hought to his new plan pIau of taxation and already it itis itis itis is is under consideration by committees of Congress |