With reference to the proposal ce repeal the Excess Profits Duty in America and substitute therefor a general tax on all sales at the rate of 1 per cent., our readers may have noticed an article which we} published this week from the pen} of Dr. Henry Chandler, economist of the National Bank of Commerce in New York. Dr. Chandler advocated the same tax but on a scale not to exceed three-tenths of 1 per cent. This amount he estimated would yield 516,000,000, whereas the U. S. Treasury authorities calculate that their 1 per cent. will bring in only $600.- 000,000. Now it may be asked when ther a sales tax at such a high rate as 1 per cent. is not going to be a tolerably stiff burden on industry. Presumably it will operate first of all on raw material, will be exacted every time this material in the course of its various processes changes hands until it finally reaches the consumer. An article, it will be readily perceived, may change owners a dozen different times before going into actual use, and unless special provision is made (a very difficult thing to do) it may ultimately be found to have paid not 1 but 12 per cent. It was with a view to simplification of collection and the avoidance of such a heavy burden that Dr. Chandler suggested three-tenths of 1 per cent., and it is easy to imagine that a very considerable protest against the proposed rate may be made in view of the considerations mentioned above.
Text read from the printed page and cleaned; old type leaves the occasional error.