St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-04
WHO PAYS THE TAX2

An income tax on corporations simply
signifies so much increase in their
charges for the services that they rem
der to the public. In other words. their
patrons will have the tax to pay.-St.
Louis Globe-Democrat.
And does not the same rule apply as to
ali taxes? A tax on imports simply adds
to the cost Of the articles taxed, and the
consumer, not the importer, ultimately
pays the tax. The tax on iron does not
come out of the pocket of the iron i'm
porter or manufacturer, but out of the
pockets of those who use the products
of iron.
No matter how demagogues and those
interested may seek to disguise the real
effect of all tariff taxation, the fact re.
mains, stubborn and ineradicable. that
the consumer, and not the importer and
manufacturer. pays all taxes. The
principle holds good in all divergent,
yet related, aspects of the subject. A
merchant, for instance, may be called
upon by his landlord to pay an increased
rental for his store. He proceeds at
once to mark up the prices of his goods
in order that he may recoup himself.
He will charge a trifle more for each
article he sells; each, perhaps, trivial in
themselves. but in the aggregate
amounting TO all or more than the in
CT ease demanded of him. He makes
his patrons pay the demands of his
landlord. 1t is eXtorted from them In
driblets, it is true, and they may not
feel the eXtortion acutely, but they feel
it, nevertheless. A tax placed upon iron
is widely distributed among all con-
SumerS of iron goods; tax imposed
upon wool comes out of the pockets of
every man who wears q wooden coat or
a pair of WOODEN socks; a tax on lumber
is paid by the men who own houses, buy
furniture or lay wooden sidewalks.
Throughout the entire schedule of tax
able articles the same rule holds good.
1t IS the consumer. and not the maker
| or importer, who pays the tax and feels
its burdens.
1t seems incredible that so manifest
| law of commerce and trade should be
so persistently misinterpreted. The
wayfaring man, though fool, cannot
| be mlsled by such bald misstatements
| as the apologists for tariff taxation are
! so constantly dining into our ears.
| There is no law of trade more unalter-
able than this: The man who can con-
duct his business at the least expense
can sell goods the cheapest. If his rent
is high, if he is heavily taxed upon
| whatever be carries in stock, he must
charge more for his goods than his
ueighbor who can receive his goods free
| of duty and pays less rent.
| 1t is no doubt true that if the railroads
are taxed upon their income they will
charge more for their services. But that
charge will not bear heavily upon the
poor. who seldom W,yel. They will, OF
course, have to pay something more for
their goods than they would otherwise
pay, but proportlonately less than they
now pay, when every article they con-
| sumo is subject to taxation in one form
or another. Those who travel much
and who consume the greatest amount
of goods transported by the railroad.
would pay the bulk of the tax.
| But under the proposed tariff It is
doubtful if there would be any increase
In railroad rates, Notwithstanding the
income tax upon the profits of corpora,
| lions. The duty on iron, coal and lum-
Der being abolished, the cost of main