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
/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.