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Show SOLUTION OF EXCESS PROFITS TAX PROBLEM PRO-BLEM Conogress raado no revision of tho excess profits tax. Legislation inthls respect cannot long bo evaded, for asido from tho lnequltablo features oc tho tax thero Is tho reason that at tho conditions which icrcato tho s.1 called excess profits ccaso to exist ex-ist tho revenue will disappear and tho government requires a tBeady Income In-come fro ma dependable source Of the substitutes suggested the simplest and most easily understood Is tho sales tax on the gross lncomo from tho overturn of icoramoditles. Such n tax of one per cent It Is estimated es-timated would produco two billion dollars of revenue. This estimate Is based on annual retail sales of about seventy flvo billion dollars of commodities com-modities which by tho tlmo they have reached the ulllmato consumer will In the various steps of reselling and remanufacturlng have passed through transactions representing n! aggregate taxable base of two hundred hun-dred million dollars. A simple Illustration Is that of a progress of a bushel of wheat from farmer to consumer. Tho several steps and tho resultant tax are: Overturn Tax o'f 1 Pet. Farmer U . $J.00 $ .02 Product dealer gets 2,20 .022 Miller sets 100 .01 Wholesale flour lealer gets 3.50 ,03E Dakcr gets ... ... 5.00 .05 Grocer gets 7.20 .072 $22.90 $ .229 At 60 loaves to tho bushel the tax-pcr tax-pcr loaf Is t .0038, or 3.2 per cont on a retail price of 12 cents. To tho objection of Increased cost to the consumer tho answer Is that the excess profits tax has been, and any form of taxation on production will be passed on to the consumer, with a largo extra margin added to prices to aseuro enough additional profit to pay the tax. It will be U advantage to know definitely to what extent prices are to be loaded by reason rea-son of a tax Mcr:antllo Tiuet Ct Review. Ban Francisco. ' i |