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                 Excise taxes recommended for repeal

Item                    Tax                       Fiscal year 1936
                      Group I             Collections      Number of
                                                          taxpayers
     (1) Regulatory Taxes no longer              
         required
 1       (a) Brewer's wort             $ 1,008,273.85        40 
 2       (b) Gasoline produced or 
         refined from natural gas           38,751.80        406 
 3   (c) Sale of crude petroleum           563,766.88        694
 4   (d) Refining of crude petroleum       561,235.89        400

     (2) Taxes on Commodities in 
         common use
 5       (a) Toilet preparation 
             the 5 percent tax)          4,823,967.94      6,100
 6       (b) Cameras                       577,925.70         50
 7       (c) Chewing gum                   807,279.40         40
 8       (d) Furs                        3,321,057.14      2,100
 9       (e) Radio parts                 5,075,270.82        300  
10       (f) Automobile accessories      7,110,188.33      2,600 

     (3) Import taxes (more properly
          to be treated under the
          tariff laws)
11       (a) Imports of certain
             oils, etc.                  1,500,000.00 /*/    /1/
12       (b) Imports of copper,
             coal, and lumber            5,684,000.00 /*/    /1/
13       (c) Imports of crude 
             petroleum, etc.             7,281,000.00 /*/    /1/
              
                  Total                 38,352,717.75      12,730
                                        =========================

                      Group II

         (Recommended for repeal     
          subsequent to Group I)

14       (a) Processing of certain 
             oils                       27,691.080.79         340
15       (b) Mechanical refrigerators     7,939,063.75         100
16       (c) Matches)                    7,106,359.21          50
17       (d) Sporting goods              5,531,122.72       1,200     
18       (e) Auto trucks, etc.           7,000,000.00 /*/     950 /2/
19       (f) Firearms, shells and
             cartridges                  2,494,574.54         100
20       (g) Safe deposit boxes          1,997,409.57      10,600 
               
                  Total                 59,759,610.58      13,340   
                                        =========================
                  Group III        
         (Recommended for repeal
          subsequent to groups I 
          and II)

21       (a) Electrical energy          33,575,179.25       2,400
22       (b) Telephone, telegraph,
             cable and radio
             messages, etc.             21,098,347.65         460
23       (c) Lubricating oils           27,102,831.57         455

                  Total                 81,776,358.47       3,315
                                        =========================
                  Grand total         $179,888,686.80      29,385

FOOTNOTES TO TABLE

/*/ Approximated.

/1/ Not available.

/2/ Includes manufacturers of other automobile chassis, etc.

END OF FOOTNOTES TO TABLE

(10) The existing tax structure could be further improved both in productivity and equity by amending statutory provisions covering certain of the excise taxes, as follows:

(a) Tax on stock sales or transfers -- to replace the present tax by changing the base and imposing a 1/4 of 1 percent tax determined on the value of the transaction.

(b) The 10 percent tax on toilet preparations -- to include those who prepare or package toilet preparations in the form in which they are to be sold to the consumer for consumption or use.

(c) Tax on ticket brokers -- to limit present 10 percent rate to excess charges not exceeding 75 cents, and to increase such rate to 25 percent on excess charges over 75 cents.

(d) Tax on admissions and dues -- to extend the liability for the tax to anyone responsible for the collection of the tax but fails to do so, whether wilfully or otherwise.

(e) Tax on admissions to night clubs -- to increase rate to a flat 2 percent of total admission charges.

(g) Tax on sporting goods -- pending Its repeal, to define more clearly articles liable to the tax.

(11) The regulatory taxes (other than those listed in Group 1 on the preceding page -- "Regulatory taxes no longer required"), the documentary stamp taxes, the admissions taxes and the taxes on dues and initiation fees should be retained in the permanent tax structure.

(12) In the event of pressing revenue needs, the scope of excise taxation could conceivably be extended to numerous commodities and services not now taxed. However, the taxable items which have greatest revenue's producing potentialities consist of commodities and services which are everyday necessities to the masses of the population. Taxes imposed upon then would fall most heavily on segments of the population possessing tile least economic ability. Notwithstanding the herein contained recommendation for decreasing reliance upon excise taxation, sight should not be lost of the possibilities of continuing to derive the same amount of excise revenue in a more desirable manner than is accomplished by utilization of some of the excise taxes now in effect. For this reason, if the loss of revenue inherent in the repeal of those excises enumerated in Group I should have to be recouped through other indirect taxes, the list of excise taxes could be extended to include tractors and trailers, radio stations, and wagers on horse and dog races.

(13) No detailed consideration is given in this memorandum to the revision of the liquor, tobacco, and oleomargarine excises. The, retention of the taxes on liquor and tobacco are Indicated because of their well established and significant position in the Federal tax structure. The tax on oleomargarine is of a rectory nature and is predicated on non-fiscal considerations of a character which for the present were not evaluated.