[Editor's Note: This document -- which continues Document No. HST29005 (Part 1) -- contains a large table, associated footnotes, and a staff memo pertaining to the table. The table itself appears in three parts, divided vertically at several points. Perhaps the best means of using the document is to print it out and assemble the various pieces. Sorry for the inconvenience; we're working to eliminate it.]
 

Congressional bills and resolutions pertaining to
general sales and gross income taxes,
1918-1941

This tabulation, while not necessarily complete, is believed to include all principal proposals relating to general sales and gross income taxes.

KEY NUMBER-For purposes of ready cross reference, bills and resolutions are given key numbers indicating the Congress, the session, and the chronological sequence of the measures introduced during each Congressional session. Thus, 67-1-2 refers to the second proposal introduced during the 67th Cong., 1st session.

RELATED PROPOSALS-The list of related proposals, while not necessarily complete, is believed to include all proposals identical with or deriving directly from the proposal cited.


Note: Bills marked(*) provide for the financing of
veterans' compensation by funds derived from a
sales tax.

Bills marked(**) provide for the financing of
old-age pensions by funds derived from a sales
tax.


[Part 1 of 3]

-----------------------------------------------------------------

                                  Principal provisions           

 Key      Citation                                               
number                            Base              Rate         

-----------------------------------------------------------------
65-2-1  S. 4879        All sales                    /2/          
                       transactions                              
                       of 5 cent or                              
                       more /1/                                  

66-3-1  H.R. 14956     (1) Sales                    1%           
                       of (a) tangible                           
                       property, (b)                             
                       intangible                                
                       property,                                 
                       (c) utility                               
                       services                                  
                       (light, heat,                             
                       and power);                               
                       (2) rentals;                              
                       (3) amounts                               
                       received from                             
                       interest                                  
                       (or discounts) /3/                        

67-1-1  H.R. 2226      Same as H.R. 14956 (66-3-1)               

67-1-2  S. 202         Sales and                    1%           
                       leases of all                             
                       goods                                     

67-1-3  H.R. 7867      Combined spending                         
                       and income                                
                       tax (1) Spending              /4/         
                       tax-amounts of                            
                       expenditure in                            
                       excess of                                 
                       exemption (2) Income          10%         
                       tax-income not                            
                       spent                                     

67-1-4  Amendment to   Sales and leases             3%           
        H.R. 8245      by manufacturers                          
        (Revenue Bill  of articles                               
        of 1921)       sold or leased for                        
                       final consumption                         
                       or use                                    

67-1-5  Amendment to   Same as 67-1-4 except that                
        H.R. 8245      rate is 1%, and that sales of             
        (Revenue Bill  farm products are exempt                  
        of 1921)                                                 

67-1-6  Amendment to   Sales and leases             0.5%         
        H.R. 8245      of all goods /5/                          
        (Revenue Bill                                            
        of 1921)                                                 

67-1-7  Amendment to   Same as 67-1-5 except that                
        H.R. 8245      rate is 3%                                
        (Revenue Bill                                            
        of 1921)                                                 

67-2-1  H.R.           Sales by                     1%           
        9410(*)        (1) manufacturer                          
                       and importer                              
                       (a) to wholesaler                         
                       (b) to retailer                           
                       and consumer                              
                       (2) wholesaler                            
                       to retailer                               

                                                    2%           
                                                    1%           

67-2-2  H.R. 9497(*)   Same as H.R. 9410 (67-2-1) except         
                       that rate on sales by manufacturer        
                       and importer to retailer is 3%            

67-2-3  H.R. 9605      Sales and leases at          3%           
                       wholesale of                              
                       goods ready for                           
                       final consumption                         
                       or use, including                         
                       sales of mechanical                       
                       and electrical energy                     

67-2-4  H.R.           Sales by manufacturers       1.5% /6/     
        9658(*)        and wholesalers                           
                        /6/                                      

67-2-5  Amendment      Sales and leases by          0.5% /8/     
        to H.R.        manufacturers of                          
        10874(*)       articles sold or                          
                       leased for final                          
                       consumption or use                        

72-1-1  Title IV,      Sales by licensed            2.25% /10/   
        H.R. 10236     manufacturers of                          
        (Revenue Bill  articles sold for                         
        of 1932)       final consumption or                      
                       use (including sales                      
                       of gases and                              
                       electricity, but                          
                       excluding sales                           
                       of real property) /9/                     

72-2-1  H.R. 13486     Sales by manufacturers       1.75%        
                       and importers of                          
                       articles sold for final                   
                       consumption or use                        

73-1-1  H.R. 1669      Same as H.R. 13486 (72-2-1) except that   
                       rate is 2.25;                             

73-1-2  Amendment to   Sales by manufacturers       1.75%        
        H.R. 5755      of articles sold              /12/        
        (N.I.R.A.      for final consumption                     
        Act)           or use /11/                               

73-2-1  S.Res. 245     Authorized the Committee on Finance to    
                       make a complete study with a view         
                       to determining the advisability of a      
                       Federal sales tax on all articles         
                       except foodstuffs                         

74-1-1  H.R. 1424      Same as Amendment to H.R. 5755 (73-1-2)   
                       except that rate is 2.25% /12/, /13/      

74-1-2  H.R.           All sales                    2% /14/      
        3977(**)       transactions                              

74-1-3  H.R. 6327      Same as H.R. 13486 (72-2-1) except that   
                       rate is 3%                                

74-1-4  H.R. 7154(**)  All sales                    2%           
                       transactions /16/                         

74-2-1  H.Res. 443     Authorized the appointment of a select    
                       committee of 8 members of the House to    
                       inquire into old-age pension plans with   
                       respect to which legislation had been     
                       submitted to the House, and particularly  
                       that embodied in H.R. 7154. (This         
                       resolution is important in the history of 
                       sales tax proposals because extensive     
                       consideration was given to the sales tax  
                       provisions of H.R. 7154 (74-1-4) in the   
                       bearings held by this committee.)         

75-1-1  H.R. 10(**)    Same as H.R. 7154 (74-1-4) except         
                       that no provision is made                 
                       for exemption of                          
                       (1) sales of tax-exempt securities and    
                       (2) isolated transaction of less          
                       than $50 /17/                             

75-1-2  H.R. 4199(**)  Same as H.R.                 2%           
                       7154 (74-1-4)                             
                       with certain                              
                       exceptions /18/                           

76-1-1  H.R. 11(**)    Gross income (less           2%           
                       expenditures for                          
                       wages, taxes and                          
                       license fees,                             
                       and interest)                             

76-1-2  H.R. 2(**)     Same as H.R. 4199 (75-1-2)                

76-1-3  S. 3(**)       Same as H.R. 4199 (75-1-2)                

76-1-4  H.R. 4581(**)  All sales                    /19/         
                       transactions                              

76-1-5  H.R. 5620(**)  Same as H.R. 11 (76-1-1) except that      
                       first $60 (instead of first $100) of gross
                       income each month is exempt.              

76-1-6  H.R. 6378(**)  Same as H.R. 6466 (76-1-7)                

76-1-7  H.R. 6466(**)  Gross income of              0.5%         
                       (1) manufacturers and        2%           
                       wholesalers;                              
                       (2) all other                             
                       businesses, trades, or                    
                       occupations (including                    
                       personal services)                        

76-3-1  H.R. 8264(**)  Gross income                 2%           
                       (in excess of                             
                       $250 a month)                             
                       of all persons                            
                       and companies                             

76-3-2  S. 3255(**)    Same as H.R. 8264 (76-3-1)                

76-3-3  H.R. 8290(**)  Same as H.R.                 /21/         
                       7154 (74-1-4)                             
                       with certain                              
                       exceptions /20/                           

76-3-4  H.R. 9048(**)  Same as H.R. 8264 (76-3-1)                

77-1-1  H.R. 601(**)   Same as H.R. 5620 (76-1-5)                

77-1-2  H.R. 1036(**)  Same as S. 3255 (76-3-2)                  

77-1-3  H.R. 1410(**)  Gross income (less           2%           
                       cost price of                             
                       component parts                           
                       and of articles                           
                       purchased for                             
                       resale) /22/                              

77-1-4  H.R. 3995      Sales by licensed            8% /25/      
                       manufacturers of                          
                       articles for final                        
                       consumption or                            
                       use /23/, /24/                            

77-1-5  H.R. 4013(**)  All sales                    2%           
                       transactions                              
                       (including                                
                       personal                                  
                       services)                                 

77-1-6  S. 1178(**)    Same as H.R. 1410 (77-1-3)                

77-1-7  H.R. 4236(**)  Same as H.R. 4199 (75-1-2)                

-----------------------------------------------------------------

[Part 2 of 3]

-----------------------------------------------------------------

              Principal provisions                               

 Key                                       Sponsor       Date    
number             Exemptions                             of     
                                                     introduction

-----------------------------------------------------------------
65-2-1  Federal, State and                Borah      8/22/18     
        local governments:                (Utah)                 
        allied governments;                                      
        enlisted men in                                          
        military and                                             
        naval service of                                         
        the U. S. and                                            
        allied countries;                                        
        American Red Cross                                       
        and other relief                                         
        organizations with                                       
        respect to purchases                                     
        for relief work;                                         
        entertainments                                           
        and other activities                                     
        to raise money                                           
        for war relief work.                                     

66-3-1  Receipts of $200 a                Mott       12/11/20    
        month; sales of                   (N. Y.)                
        personal services;                                       
        transportation of                                        
        persons and property;                                    
        transportation of                                        
        oil by pipe lines;                                       
        communication; seats,                                    
        berths, etc. on                                          
        trains and vessels;                                      
        sales by governments                                     
        and non-profit                                           
        organizations;                                           
        exports.                                                 

67-1-1  Same as H.R. 14956 (66-3-1)       Mott       4/11/21     
                                          (N. Y.)                

67-1-2  First $6,000 of                   Smoot      4/12/21     
        annual sales; sales               (Utah)                 
        by governmental                                          
        units, hospitals, Army                                   
        and Navy commissaries                                    
        and canteens, non-profit                                 
        organizations; exports.                                  
        Certain articles already                                 
        subject to selective                                     
        excises are exempt.                                      
        (Excises on articles not                                 
        specifically exempt are                                  
        repealed.)                                               

67-1-3  Annual exemption of               Mills      7/20/21     
        $2,000 for single                 (N. Y.)                
        individual and                                           
        $4,000 for head of                                       
        family; all ordinary                                     
        expenses of business,                                    
        trade, or profession;                                    
        taxes; gifts for                                         
        charitable or educational                                
        purposes; medical expenses;                              
        investments made during                                  
        year, including real                                     
        estate; insurance                                        
        premiums.                                                

67-1-4  Same as S. 202 (67-1-2)           Smoot      9/30/21     
        except for addition               (Utah)                 
        of sales of refined                                      
        gold and silver, and                                     
        sales by public utilities.                               

67-1-5  Same as 67-1-4 except that        Smoot      11/3/21     
        rate is 1%, and that sales of     (Utah)                 
        farm products are exempt                                 

67-1-6  $6,000 of gross annual            Smoot      11/3/21     
        sales; sales to U. S.; sales      (Utah)                 
        of refined gold and                                      
        silver; sales by farmers;                                
        articles already taxed;                                  
        exports.                                                 

67-1-7  Same as 67-1-5 except that        Smoot      11/7/21     
        rate is 3%                        (Utah)                 

67-2-1  Foodstuffs for human              Rossdale   12/9/21     
        consumption; real property;       (N. Y.)                
        intangible property;                                     
        life insurance; newspapers,                              
        magazines, and                                           
        publications by                                          
        educational, religious                                   
        and charitable                                           
        organizations.                                           

67-2-2  Same as H.R. 9410 (67-2-1)        Ryan       12/12/21    
        except that rate on sales by      (N. Y.)                
        manufacturer and importer to                             
        retailer is 3%                                           

67-2-3  Annual sales of $5,000;           Watson     12/17/21    
        sales by governments,             (Pa.)                  
        hospitals, Army and                                      
        Navy commissaries and                                    
        canteens; non-profit                                     
        organization; exports.                                   

67-2-4  /7/                               Volk       12/20/21    
                                          (N.Y.)                 

67-2-5  Same as 67-1-5                    Smoot      8/30/22     
                                          (Utah)                 

72-1-1  Sales for further                 Crisp      3/7/32      
        manufacture or resale; for        (Ga.)                  
        export; to State or local                                
        government; farm products,                               
        seeds, fertilizer, feeds;                                
        specified foods;                                         
        newspapers and magazines;                                
        books for blind; school                                  
        books, Bibles; articles                                  
        and manuals of religious                                 
        devotion; altars, regalia,                               
        etc. for use in churches;                                
        articles already taxed.                                  

72-2-1  Sales for further                 McLeod     12/9/32     
        manufacture or resale;            (Mich.)                
        for export; to State or local                            
        government; clothing                                     
        (wholesale price less                                    
        than $25); tools and                                     
        implements; farm and                                     
        garden products, seeds,                                  
        fertilizer, feeds;                                       
        specified foods;                                         
        newspapers and magazines;                                
        books for blind;                                         
        school and religious                                     
        books; articles and manuals                              
        of religious devotion;                                   
        altars, regalia, etc.                                    
        for use in churches;                                     
        articles already taxed.                                  

73-1-1  Same as H.R. 13486 (72-2-1)       McLeod     3/9/33      
        except that rate is 2.25;          ***                   

73-1-2  Sales for further                 Reed       6/9/33      
        manufacture or resale;            (Pa.)                  
        sales to State or                  ***                   
        political subdivision;            (Mass.)                
        farm products                     Byrd                   
        unprocessed other                 (Va.)                  
        than by original                                         
        producer; feeds;                                         
        food, foodstuffs,                                        
        coffee, tea; wearing                                     
        apparel; medicines (other                                
        than patent and                                          
        proprietary);                                            
        articles already                                         
        taxed; exports.                                          

73-2-1  Authorized the Committee on       Barbour    5/20/34     
        Finance to make a complete study  (N. J.)                
        with a view to determining the                           
        advisability of a Federal sales                          
        tax on all articles except                               
        foodstuffs                                               

74-1-1  Same as Amendment to H.R. 5755    Treadway   1/3/35      
        (73-1-2) except that rate is      (Mass.)                
        2.25% /12/, /13/                                         

74-1-2  Income from personal              McGroarty  1/16/35     
        services. /15/                    (Calif.)               

74-1-3  Same as H.R. 13486 (72-2-1)       McLeod     3/1/35      
        except that rate is 3%            (Mich.)                

74-1-4  Isolated transfers of             McGroarty  4/1/35      
        property of less than             (Calif.)               
        $100 value, or any                                       
        isolated transaction of                                  
        less than $50 which                                      
        does not arise in                                        
        usual course of business;                                 
        loan, deposit, withdrawal                                
        from deposit, pledge                                     
        of property or money;                                    
        sales of tax-exempt                                      
        securities.                                              

74-2-1  Authorized the appointment of a   Bell       3/10/36     
        select committee of 8 members of  (Mo).                  
        the House to inquire into                                
        old-age pension plans with                               
        respect to which legislation had                         
        been submitted to the House, and                         
        particularly that embodied in                            
        H.R. 7154. (This resolution is                           
        important in the history of                              
        sales tax proposals because                              
        extensive consideration was                              
        given to the sales tax                                   
        provisions of H.R. 7154 (74-1-4)                         
        in the bearings held by this                             
        committee.)                                              

75-1-1  Same as H.R. 7154 (74-1-4)        McGroarty  1/5/37      
        except that no provision is made  (Calif.)               
        for exemption of (1) sales of                            
        tax-exempt securities and (2)                            
        isolated transaction of less                             
        than $50 /17/                                            

75-1-2  Personal services;                Crosby     2/2/37      
        transactions by                   (Pa.)                  
        governmental agencies                                    
        or sales of                                              
        government securities.                                   
        No tax payable if amount                                 
        of tax due for any                                       
        month is less than $1.                                   

76-1-1  Governmental agencies;            Sheppard   1/3/39      
        China Trade Act                   (Calif.)               
        corporations; specified                                  
        non-profit organizations;                                
        $100 gross income each                                   
        month; first $2,000 of                                   
        amounts received                                         
        through accident or                                      
        health insurance, under                                  
        workmen's compensation,                                  
        damages on account of                                    
        personal injuries or                                     
        sickness; income                                         
        from life                                                
        insurance policies;                                      
        income from government                                   
        securities; income                                       
        exempt by treaty;                                        
        income of foreign                                        
        governments or their                                     
        employees; exports.                                      

76-1-2  Same as H.R. 4199 (75-1-2)        Hendricks  1/3/39      
                                          (Fla.)                 

76-1-3  Same as H.R. 4199 (75-1-2)        Pepper     1/4/39      
                                          (Fla.)                 

76-1-4  Isolated transactions             Guyer      2/28/39     
        in amounts not exceeding          (Kansas)               
        $50; contributions to                                    
        churches and charitable                                  
        organizations.                                           

76-1-5  Same as H.R. 11 (76-1-1) except   Magnuson   4/6/39      
        that first $60 (instead of first  (Wash.)                
        $100) of gross income each month                         
        is exempt.                                               

76-1-6  Same as H.R. 6466 (76-1-7)        Hendricks  5/17/39     
                                          (Fla.)                 

76-1-7  National banks;                   Hendricks  5/23/39     
        non-profit organizations;         (Fla.)                 
        amounts received from                                    
        life insurance, endowment                                
        or annuity contracts;                                    
        from accident or health                                  
        insurance, under                                         
        workmen's compensation;                                  
        amounts received as                                      
        compensatory damages                                     
        for tort injury;                                         
        amounts collected                                        
        as Federal, State,                                       
        territorial gasoline                                     
        taxes and as Federal                                     
        amusement taxes;                                         
        benefit payments;                                        
        alimony and similar                                      
        settlements.                                             

76-3-1  Non-profit organizations;         Hendricks  1/1/40      
        amounts received from             (Fla.)                 
        life insurance;                                          
        property, accident                                       
        or health insurance;                                     
        under workmen's                                          
        compensation; compensatory                               
        damages for tort injury;                                 
        benefit payments.                                        

76-3-2  Same as H.R. 8264 (76-3-1)        Downey     2/2/40      
                                          (Calif.)               

76-3-3  Personal services                 Green      2/2/40      
                                          (Fla.)                 

76-3-4  Same as H.R. 8264 (76-3-1)        Green      3/25/40     
                                          (Fla.)                 

77-1-1  Same as H.R. 5620 (76-1-5)        Magnuson   1/3/41      
                                          (Wash.)                

77-1-2  Same as S. 3255 (76-3-2)          O'Connor   1/3/41      
                                          (Mont.)                

77-1-3  Governmental agencies;            Larrabee   1/6/41      
        China Trade                       (Ind.)                 
        Act corporations;                                        
        non-profit organizations;                                
        $80 gross income each                                    
        month; first                                             
        $5,000 of amounts                                        
        received from accident                                   
        or health insurance,                                     
        under workmen's                                          
        compensation, by                                         
        suit or agreement on                                     
        account of personal                                      
        injuries, from life, fire,                               
        or other insurance;                                      
        income from government                                   
        securities; income                                       
        exempt by treaty;                                        
        income of foreign                                        
        governments or their                                     
        employees.                                               

77-1-4  Sales for further                 O'Connor   3/13/41     
        manufacture or                    (Mont.)                
        resale; sales to                                         
        State or political                                       
        subdivision;                                             
        farm products unprocessed                                
        other than by                                            
        original producer;                                       
        articles already taxed;                                  
        exports.                                                 

77-1-5  No tax paid if tax                Casey      3/14/41     
        due for a month is                (Mass.)                
        less than $1.                                            

77-1-6  Same as H.R. 1410 (77-1-3)        Langer     3/20/41     
                                          (N. D.)                

77-1-7  Same as H.R. 4199 (75-1-2)        Flaherty   3/31/41     
                                          (Mass.)                

-----------------------------------------------------------------

[Part 3 of 3]

----------------------------------------------------
          Congressional action                      
             subsequent to                          
              reference to                          
 Key          appropriate              Related      
number      comm. (Ways and           proposals     
            Means or Senate                         
                Finance)                            

----------------------------------------------------
65-2-1  Senate Finance                              
        Committee Hearings                          
        on Revenue Act of                           
        1918 (9/16/18),                             
        pages 499-510                               

66-3-1                            H.R. 2226         
                                  (67-1-1)          

67-1-1                                              

67-1-2  Smoot bill was not                          
        specifically considered,                    
        but at special                              
        invitation of                               
        Committee, proponents                       
        and opponents of                            
        sales tax appeared                          
        before the Senate                           
        Finance Comm. Hearings                      
        on the Revenue                              
        Act of 1921. (5/9-                          
        27/21), pages 21-496.                       

67-1-3  Ways and Means Comm.                        
        Hearings on Internal                        
        Revenue Revision,                           
        1921, (7/26-29/21)                          
        pages 144-154                               

67-1-4  Offered on floor          Amendment         
        as amendment.             to H.R. 8245      
        Later withdrawn           (67-1-5)          
        by sponsor and            (67-1-7)          
        replaced by 67-1-5        H.R. 10874        
                                  (67-2-5)          

67-1-5  Offered on floor          See Amendment     
        as amendment and          to H.R. 8245      
        defeated, 11/3/21         (67-1-4)          

67-1-6  Offered on floor                            
        as amendment                                
        and defeated,                               
        11/4/21                                     

67-1-7  Offered on floor          See Amendment     
        as amendment and          to H.R. 8245      
        defeated, 11/7/21         (67-1-4)          

67-2-1                            H.R. 9497         
                                  (67-2-2)          

67-2-2                                              

67-2-3                                              

67-2-4                                              

67-2-5  Offered on floor          See Amendment     
        as amendment              to H.R. 8245      
        and                       (67-1-4)          
        defeated, 8/30/22                           

72-1-1  Reported favorably by     H.R.13400         
        Ways and Means            (72-2-1)          
        Comm. (House              H.R. 1009         
        Report 708,               (73-1-1)H.R. 6327 
        72nd Congr., 1st          (74-1-3)          
        sess.) Considered                           
        on 3/24/32. Amendment                       
        offered                                     
        by Mr. Doughton                             
        to strike the sales                         
        tax from the                                
        Revenue Bill was                            
        adopted. Effort on                          
        4/1/32 to restore                           
        the sales tax                               
        to the Revenue                              
        Bill was defeated.                          

72-2-1                            See Title IV,     
                                  H.R. 10236        
                                  (72-1-1)          

73-1-1                            See Title IV,     
                                  H.R. 10236        
                                  (72-1-1)          

73-1-2  Offered on floor          H.R. 1424         
        as amendment              (74-1-1)          
        and defeated,                               
        6/3/33                                      

73-2-1                                              

74-1-1                                              

74-1-2  Considered in Ways        H.R. 7154         
        and Means Comm.           (7-1-4)           
        Hearings on H.R.                            
        4120 (Social                                
        Security Bill)                              
        2/1/35. pages 677-760;                      
        Senate Finance                              
        Comm. Hearings                              
        on S. 1130                                  
        (Soc. Sec. Bill)                            
        2/16/35. pages                              
        1015-1070                                   

74-1-3                            See Title IV.     
                                  H.R. *** (72-1-1) 

74-1-4  See H. Res.               H.R. 3977         
        443(74-2-1)               (74-1-2)          
                                  H.R. 10 (75-1-1)  
                                  H.R. 4199 (75-1-2)
                                  H.R. 8290 (76-3-3)
                                  H.R. 4236 (77-1-7)

74-2-1  The Select Committee                        
        Investigating Old-Age Pension               
        Organizations was appointed                 
        3/11/36 and held hearings on                
        selected days between                       
        3/26/36-7/7/36                              

75-1-1                            See               
                                  H.R. 7154         
                                  (74-1-4)          

75-1-2                            See               
                                  H. R. 7154        
                                  (74-1-4)          

76-1-1                            H.R. 5620         
                                  (76-1-5)          
                                  H.R. 601          
                                  (77-1-1)          

76-1-2                            See               
                                  H.R. 7154         
                                  (74-1-4)          

76-1-3                            See               
                                  H.R. 7154         
                                  (74-1-4)          

76-1-4                                              

76-1-5                                              

76-1-6  Withdrawn by                                
        sponsor as                                  
        defective                                   
        and replaced                                
        by H.R. 6466                                
        (76-1-7)                                    

76-1-7  Reported by                                 
        Ways and                                    
        Means Comm.                                 
        without recommendation                      
        (H. Rept.                                   
        690, 76th                                   
        Congr., 1st sess.,                          
        5/25/39).                                   
        Defeated 6/1/39.                            

76-3-1                            S. 3255           
                                  (76-3-2)          
                                  H.R. 9048         
                                  (76-3-4)          
                                  H.R. 1036         
                                  (77-1-2)          

76-3-2                                              

76-3-3                                              

76-3-4                                              

77-1-1                            See               
                                  H.R. 11           
                                  (76-1-1)          

77-1-2  Considered in             See               
        Hearings before           H.R.              
        the Special               8264              
        Senate Committee          (76-3-1)          
        to Investigate                              
        the Old-Age,                                
        Pension System,                             
        pursuant to                                 
        S. Res. 129,                                
        (7/24/41),                                  
        pages 151-191                               

77-1-3                            S. 1178           
                                  (77-1-6)          

77-1-4                                              

77-1-5                                              

77-1-6                                              

77-1-7                            See               
                                  H.R.7154          
                                  (74-1-4)          
----------------------------------------------------
  
FOOTNOTES TO TABLE
/1/ Collected by stamps. Purchaser liable for tax.

/2/ Ranges from 1 cent on purchases of 5 cent to $99.99 up to $1
on the first $1,000 and 3 cent on each additional $1,000 in a
transaction aggregating $50,000 or more.

/3/ No credit allowed for amount of sales tax included in prices
of commodities purchased. Penalty for statement (written or oral)
that any part of amount charged consists of tax.

/4/ Increases 1% for every $2,000 spent up to $18,000, and
thereafter 1% for every $1,000 up to $50,000; 40% on amounts over
$50,000.

/5/ The tax applies to sales at all levels of production and
distribution less credit allowance for sales tax included in prices
of commodities purchased.

/6/ Public utility services (transportation, gas, electricity,
telephone and telegraph) are taxable at 0.5%; sales of lumber by
manufacturer at 2% (importation of lumber at 3%, but no further tax
on resale); duty-paid value of imports (1) by manufacturers and
wholesalers, 2-1/2%; (2) by retailers or consumers, 3%. Tax must be
shown separately and must not be included in cost on which profit is
calculated.

/7/ Specified foods and feed; seeds; farm products; nursery
stock; bees; ice; fuel; ores; newspapers and magazines; materials for
construction and repair of ships; calcium carbide; artificial limbs
and eyes; donations of clothing and books for charitable purposes;
settlers' effects; war veterans' badges and monuments to World War
soldiers, articles imported for embassies; Bibles and prayer books.
Secretary of Treasury may add to list.

/8/ Rate was to be 0.5% for the period 11/1/22-11/1/25 and 0.25%
thereafter.

/9/ Sale rice includes charges for coverings and containers, but
excludes transportation, delivery, insurance, installation, taxes, or
other charges.

/10/ Annual license fee of $2 required of manufacturers whose
annual sales are $20,000 or more.

/11/ See footnote 9, page 2.

/12/ See footnote 10, page 2.

/13/ 50% of net collections (after refunds) allocated to States
on basis of population. If State (or political subdivision) imposes a
general sales tax, it will not receive a share.

/14/ The President in his discretion may increase or decrease
rate by not more than 50%.

/15/ Tax is levied in addition to other Federal excises.

/16/ Includes sale or transfer of real or personal property;
interest, rent, commissions; services (including personal services);
transportation; communication; amusements; education; art;
advertising; public utilities; water rights.

/17/ Tax on personal services (other than professional)
collected at source.

/18/ The base is the same as that shown in footnote 16, page 3,
except that it excludes personal services, and includes: use of any
raw material or product on which transaction tax has not been paid;
receipts from lotteries, betting, payments of wagers, etc.; and
membership dues.

/19/ Labor-saving machinery, 10%; admissions, alcoholic
beverages, cosmetics, 56; grain transactions, security transactions
on organized exchanges, brokerage, etc.,.125% per $1,000; security
transactions between individuals not in established business, 1%;
personal services (including professional) and all other
transactions, 1%.

/20/ The base is the same as that shown in footnote 16, page 3,
except that it excludes personal services (when value is less than
$50 a month), and includes lotteries, betting, payments of wagers,
etc., and membership dues.

/21/ Real estate and personal property; factory products when
sold to jobbers or retailers for resale; insurance premiums and
benefits; investments or building and loan contracts; interest; sale
of writings, advertising, art; mined coal or ores; crude oil or
natural gas; electric power, or public utility profits (privately
operated, rural electrification exempted); sundries and notions;
returns from stocks and futures; admissions to races, 2%; interest or
gross profits from banking; rentals and leases; membership dues
(except religious, fraternal, welfare); subscriptions or sales of
newspapers, magazines, books; automobiles, aircraft and accessories,
service station products; metal products, railroad equipment or
shipyard products (privately produced); travel fares; commissions and
brokerage receipts; tobacco (except cigarettes, 3%), 1%; syndicated
news articles or features; public amusements; winnings from betting;
alcoholic beverages; war munitions (privately produced), 5%.

/22/ Tax on wages is collected at source. Credit is allowed to
both employer and employee for payroll taxes paid.

/23/ See footnote 9, page 2.

/24/ 90% of net collections (after refunds) allocated to States;
30% on basis of total tax revenues raised within State by State and
political subdivisions during preceding year; 30% on basis of total
tax revenues derived from taxes other than property taxes during the
preceding year; and 30% on basis of population. Purpose of
allocation: for reduction of State and local property taxes.

/25/ See footnote 10, page 2.
 
MEMORANDUM TO THE FILES

March 20, 1942.

Subject: The log of Congressional bills and resolutions pertaining
to general sales taxes 1916-1941, prepared by Miss Wells.

The log of Congressional bills and resolutions pertaining to general sales taxes 1918-1941, prepared by Miss Wells, was reviewed and a number of suggestions were offered orally. The main suggestions made were as follows:

1. The classification of the various taxes into "retail", "manufacturers", "turn-over", "transactions", etc. taxes was criticised since there was no accurate basis for the classification for the various bills and resolutions. Mr. Farioletti concurred in this and these columns will be dropped from the table.

2. The citation column should indicate whether the particular bill was an original one or an amendment to another bill.

3. The columns referring to Congressional action should be reduced to one column, the heading to read "Congressional action subsequent to reference to the appropriate committee (Ways and Means or Senate Finance)."

4. In addition, technical points and points of accuracy were indicated.


Treasury Department
Division of Tax Research