Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1888-02-03
THE CoNsUMER PAYS THE TAX.

Friday Morning. 500. February 8. 1888.
THE CONSUMER PAYS THE TAX.
If protectionists were honest they would
admit that a high tariff benefits certain in
terests at the cost of the whole body of con-
sumers. But they are crafty and sophisti-
cal Sc plain statement Of their case would
defeat their purpose. That which is essen
TALLY selfish system, compelling the many
to enrich the few, rests upon basis of
atrGcious falsehood. A. favorite statement
with protection apolegists is denial of the
truism that consumer pays all taxes upon
products. Senator Frye made such de.
nial in his recent speech. He RETAINED from
going as far as Senator Logan went when
he assured Western audience that Bri-
fish manufacturers paid the custom house
tax at New York upon all the goods they
sent into this country, and were compelled
thereby most unwillingly to contribute to
the betrayal of the expense of the govern
ment. 3il
The Commissioner of Internal Revenue
has just reported 10 the Senate that from
the adoption Of the internal tax policy OF
1859 until June last the government col
lected as tax upon spirits and fermented
liquors 81 ,S4S $4,000. Whopaid this enor-
NOUS amount during all these years? The
distiller and brewer. The government col
lected it from the manufacturers, but who
paid itg Taken from the distiler and the
brewer it was added to the price of the
liquors, and the tax came out of the pockets
nj :, -. ,aae wls0 stun
into Eheir stomachs. During all these TWEEN
ty-fve years many heavy taxpayer went
to his grave because, tax or no tax, he would
indulge an awful craving for liquor.
When during the war the government
exacted from street car companies y special
tax of cent for every passenger carried
who paid the tax? The companies collected
it from their passengers. What does land
lord do regarding the tax levied locally upon
real estate? He passes it on to the tenant
who is the real taxpayer. So with every
tax, the ultimate payer is the consumer.
An American merchant purchases al
Manchester or Sheffield an invoice of Eng
lish-made goods. He pays the market price
When the consignment reaches the New
York custom house the American importer
pays the tariff because the government, hav-
ing the whip-handle, will not await the
SLOW, uncertain and unsatisfactory process
of collection from the ultimate purchaser
for use, but lays its hands upon the goods
at the port Of entry demanding its tribute
What does the merchant dor Hedetermine.
the selling price by adding to the cost o
the goods 10 Manchester or Sheffield, the
cost of transportation, the custom house tax
all expenses, including the brokerage and
insurance, and upon the whole sum figures
his own percentage of profit, adding this t.
the selling price. The goods are passed on
Is it not plain that the man who finally buys
Tor use some portion Of this consignment
foots the tax bill
But suppose the consumer buys goods ei
home manufacturer, how can the tariff
affect him disadvantageouslyp The answer
is found in the very reason why high
tariff is levied. In the shelter of the custom
houses the home producer of salt, or woolens
or lumber, or any other highly protected ar
ticIe makes an artificial price which is not
broken down because foreign competition
is restricted by the tariff. The price thus
raised Is passed on TO the ultimate pur.
chaser Of these products, who in such case
lacks the poor satisfaction OF contributing To
the overgrown surplus in the national treas
ury, for the extra price exacted from him
swells the profits Of manufacturers grown
immensely rich through such unwarranted
iavoritism of law. But may not the keen.
ness Of some competition break down this
priceg Ii it does why have protective
tariff But lest IL might, associations, trusts
compacts among producers are organized in
order that the wolves travelling in packs
may make greater certainly OF their mutton.