MERCHANTS INDORSE
GENERAL SALESTAX
Senate Committee Hears Argu
ments for New Revenue
Proposal.
ONE PER CENT. FAVORED
Emphasis Laid on Equity, Pro
ductivity and Ease of
Administration.
Fpf ial Despatch to Tun N*w Toax Hxbai.d.
New York Herald Bareao. I
Washington. D. C? May ?. 5
A general sales tax 1b the most de
sirable, equitable, productive and easily
administered form of new revenue that
can be devised to meet Government
needs it was contended to-day by
witnesses appearing: In Its favor before
the Senate Committee on Finance In
the first formal revenue hearing in the
present Congress. Charles E. Lord of
New York, drygoods merchant; Hugh
Sntterlee of Philadelphia representing
the trades council of the Manufacturers
Club and A. J. Kelly of Pittsburgh
speaking for ordganlzed real estate in
terests. were witnesses The hearings
will be continued to-morrow, when both
advocates and opponents are to be
heard.
The witnesses agreed In advocating a
general turnover tax of 1 per cent, on
goods, wares and merchandise, which
they estimated will raise annually
$1.^(10,000,000 at least- The said
Government actuaries arrived at the
said estimates.
Unqualified support for It was manl
i-sted by Senators Smoot (Utah) and
Watson (Ind.). Other Senators did not
jndicate their positions. (Incidentally
the discussion Involved arguments re
gardlng possible reduction of surtaxes
on incomes, . the witnesses favoring
abolition of taxes running higher than
20 per oent
Summarised, the arguments presented
were:
That a general sales tax Is equitable,
whereas present taxes, both specific
consumption taxes, income taxes and ex
cess profits taxes, are Inequable.
That In the long run the Government
will he the gainer by a sales tax and j
that the taxpayers will be relieved of
discriminatory taxes.
