Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1860-03-17

The Tax on Merchants Sales.
We s.h.sisuse. for any remarks Of our own aPon
a. subject the following orcible article from the
/ Richmosd Wing. in condemnation Of the policy
which osstain nsmbers Of the Virginia Legisla-
,ure seem disposed 70 adopt relative to the tax on
Merchants sales. We are not unaware Of the
difkculies that ls'in the way Of taxing the nett
profits in any given business conducted upon the
credit system owing % uncertainty respecting the
real value Of accounts that may be outstanding at
the end Of the year which uncertainty battles.
70 some extent the possibility of arriving ut cor
rect estimate Of prs6ts. Upon the other hand how
ever, IL 10 we'll known that any merchant doing an
extensive credit business must necessarily cncoun-
ter heavy losses resulting from bad debts. But.
upon the principle now sought TO be engvafted in
to our legislative system, ne must pay tax upon
his losses the same as npon his profits Moreover,
rs our Contemporary very justly Observes the tax
will be unequal, a. importers and jobbers must
nav more than retailers, because their sales are
larger and their profits smaller; which unjust
discrimination is calculated 10 crush all efforts
looking to direct trade an the building up of our
own seaport cities. There is another aspect Of
injustice Of the principle to which We have adver-
ted
In many sections oil the State, owing TO active
competition or other causes the profits on goods
are less than are realized in other sections hence,
those merchants who sell Mt small profits would be
taxed just as heavily as those whose good fortune
il might be to secure large profits.
We conclude therefore, that the proposed tax is
not only too high, but that the principle upon
which it is levied 10 wrong, and that the basis Of
taxation should not be upon tho amount Of bust.
ness done. but on the profits thereof. nearly as
these can be computed Having written much
more however than we intended, We submit the
article from the Wing, and bcspeak for it care
full perusal.
No matter what may be their professions to tho
contrary, majority of the members OF the pres
emit House Of Delegates indicated, by their action
night before last determination to drive the
chants of tho State to the wall. In the tax hill
now before the House. provision has been ad"p.
tel imposing n tax Of one per cent on all the sales
annually made by our merchants. II will be OBJ
served that this tax is imposed. not upon the
pyofts. but upon The actual sales. whether there
be any returns Of profits not. Thus. mcr.
year, ten ttousana dollars worth OF goods, has to
pay one hundred dollars tax, whether his profits
be large, small. nr nothing. And the man who
sells hundred thousand dollars worth has to pny
n tax of one Thousand dollars, and SO on. Under
this provision of the bill, there is one large mpor
ting firm in Richmond, who will hive to pay tax
of orer ten thousand dollars! Aud thus, too. I'M
ner this onerous and odous bill our importing
merchants are Disseminated against, as their
profits upon sales ARE necessarily smaller than
those ef the retail merchants. Aud this diserm-
nation Is made against them, also in face Of the
fact, that the patrons Of this very bill Ms well as
the entire people Of Virginia, are exceedingly loud
and clamorous in behalf OF direct trade with Eu
rope, as ii direct trade can ever DO accomplished
when our importing merchants are thus legislated
against. crippled. discouraged and destroyed.
Contemplating this unjust and odious provision
OF tho tax bill. forced to the conclusion that
those members Of the Legislature who voted for it
are far more enemies Of the Advancement and pros.
perty Of Virginia and the South so far, at least,
as their commercial interests ARC concerned that
the people Of the North the Abolitonists included
Just at the very moment when our merchants sup
posed they wouhl meet with liberal encouragement
from the Legislature, in order to enable them to
compete successfully with their Northern rivals.
they Unexpectedly encounter tax in the shape
OF one pcr cent all their sales, which will drive
many OF thom from the trade, paralyze others and
Heaven Of saving them selye. consists Of cours" in
charging their country customers n higher profit
for the go,d- they sell them. And what would DO
the effect Of thsi Would it not necessarily tend
to divert these customers from Richmond, Peters.
burg, Norfolk, Lynchburg, Alexandria and our
other Virginia cities and towns, and drive them to
the Northern markets--to the markets Of Dnlti.
more. Philadelphia and New York! Such. assured
~, will be the ine~itabe efIsc. Of this ,axor il is
unreasonable to suppose that tho merchants of
North Carolina, Tennessee, AMI other neicboring
States will make their purchases in Virginia cities