Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-01-22
THE MERCHANTS TAX.

The merchants tax is lighter than 1t
was last year, and is endurable; but still
il is not equitable. In the first place
l;oeuse Of five dollarsis fixed by the State
on the retail dealer, even il the stock is
valued at no more than one dollar. The
smallest apple stand has to pay this tax
which is certainly not in proportion to
the capital employed, and here we lind
a olaripg exception against the poorest
class Of people, who can neither patron
ize newspapers and thereby enlist edito'
rial sympathies through the counting
room. nor make appeals to their law
makers through well-dressed committees
sent up to explain their wants to the
Legislature. This license tax was form
erly ten dollars, and under its provisions
the small retail dealer paid five, ten and
fifteen times as much on his capital IN
vested as the larger merchant who PAID
the Uniform ad valorem and license tax
eoual thereto on his largest stock, which
is still defined to be his capital. " Very
few merchants, however, believe that
this is fair rule for ascertaining the
capital employed in business. This is
question worthy of consideration. But
the most Objectionable feature of the law
perhaps is the priDilege feature. The
merchants demanded to be put on
an equality with other property
holders, and this resulted in the collec-
ton Of special county taxes this year.
never before required Of merchants.
They were as liable for years past as
now. but the matter was overlooked.
They do not object to paying these
special taxes, but to the State and
county license tax. The State ad valo-
rem tax on property, and therefore on
merchants, is forty cents on the hundred
dollars, and the license tax on goods
sold in the State is forty cents additional
But no license tax can be collected on
goods sold and sent to parties living be-
yond the State. This, although spe-
cies of class legislation, comes from The
Constitution, and is highly favorable to
our Wholesale merchants who sell from
one.half to three-fourths of their goods
out of the State, and will only have to
pay the forty cents license tax to the
State on the remainder. The county
license tax has been reduced to one
fourth the rate of the State, and
is, therefore, virtually abolished. The
Legislature would do an act of Jus
tice to discontinue the license tax alto
gether, particularly the five dollar fea-
ture, which may seem small matter;
but coming from wellthumbed shinplas-
tiers of the old woman at the peanut
stand or the cripple at his shelf on the
corner, is not only unfair and dispropor-
tionate, but is felt severely by the humble
classes, who often exc out existence and
even support families on a capital of less
than one hundred dollars. There are
hundreds such in Memphis. We believe
that on fair statement Of this question
to the General Assembly the merchants
license tax would be abolished entirely.
Merchants can turn over their capital
oftener than the farmer, who makes but
one crop and one return year, it is
very true; but merchants have to do a
credit business, and in the long run take
as great risks in relation to probable net
profits as any class, and for these reasons,
if for no other, we would be in favor of
placing the ascertained value of their
merchandise as representing capital on
the same footing as any other property |
The laws need revision, but we will allude
to the subject again and make some
practical suggestions.
-a-o-H