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Newspaper
Mount Sterling Advocate
Location
Mount Sterling, Kentucky, United States of America
Date
Apr 29, 1920
Page
2
A Boston letter urges replacing the war era tax system with a broad consumption tax on sales. It argues current income and excess profits taxes distort prices, curb savings, and burden production, proposing a monthly one percent tax on net sales with real estate transfers and professional fees treated as sales.
The author critiques the present progressive income tax and argues a sales tax would be fairer and simpler. They illustrate with a manufacturer paying 35,000 on profits and show how a 1 percent sales tax would be added at each stage, ultimately borne by the consumer. The piece calls for a threefold plan: 4 percent income tax above thresholds, a 1 percent sales tax, and moderate surtaxes on unearned income, to reduce cost of living and simplify collection.
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