The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1897-07-21
The Mercantile Tax.

7ytuSUitic World.
The mercantile tax law passed in
this state by the recent Legislature is
causing large amount Of dissatisfac-
tion to the large dealers in merchan.
disc There has been great amount
of discomfort heard in many quarters
from merchants on account Of the es.
tabishmeut of department stores in
the larger cities to the detriment of
small shopkeepers, and as the propri.
etors of these large establishments
will have to pay according to the bus.
iness transacted by them it seems that
the law is all right in that respect,
II they do a large business they
should be willing to pay tax com.
meusurate with their income. 1t
should be given a trial. The Craw.
ford Journal takes very sensible
view of the matter. 1t says:
"The room of Gov. Hastings at
Harrisburg has beeu the scene of
some very angry protests during the
past week, made 10y the merchants of
Pittsburg, Philadelphia aud other
large cities, against the mercantile
tax There has been a mercantile
tax in this state for many years 1t
has borne, however, much more heav
lily upon snail merchants than upon
those doing large business. This is
not at all unusual in taxation, how.
ever. The same uufair rule obtains
in the taxation of real estate aud all
other kinds of property. The lar.
gest property holders, as rule, pay
the hghicst tax 10 proportion to their
holdings; the larger their property,
the less the assessed valuation, in pro.
portion to true value. That is, this
is the general rule Of taxation the
world over. 1t does not follow that
it is right or equitable. Iu fact, it is
neither. The new mercantile tax,
graduated as it is in proportion to the
amount of business done, IS 10 line
with the best economic thought of the
day. For that matter, So is a grad
usted income tax. In trying to es.
cape from their share of the burdens
of this, the big merchants of the lar
ger cities of the state are setting a
very bad example, They should
bear those burdens and bear them
willingly instead Of trying to shrink
them. In few cases, and in few
lines of business, this new tax may
possibly be inequitable, but generally
speaking, and in broad way it is a
fair and just tax. The property up.
on which il Is levied, unless owned by
a corporation, practically escapes
taxation altogether under our present
laws.
The merchants of the smaller
cities and of the towns and Villages
will not be effected by this law to
any great extent. Their taxes will
not, upon the whole, be increased |,
will affect most heavily the great de.
partmeut stores and the immense es
Establishments which have of late been
manipulating the retail trade Of the
country. 1t may be necessary for the
next legislature. in the line of exper.
fence it will gain in the meantime, tc
modify the law, especially to relieve
, if possible, the wholesale establish
ments aud jobbing houses, whose
margin of profit is smaller than tha
of the retail stores But Governor
Hastings need feel no hesitancy anc
need make no apology in siguing thi;
measure. In time it will be approved
by the great majority of the people
of this state. 1t is founded upor
justice and is an attempt to equalizt
taxation. AS such the legislature il
entitled praise, not blame, for its pas
sage"