The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-06-29
TAXING NEWSPAPERS.

Under the above caption the New
York Times in an editorial article ably
points out the injustice of proposed
legislation by congress as follows:
The newspaper business, like any
other, should pay its just proportion
of the costs of government. 1t always
has. Newspapers pay taxes upon their
taxes, they are subject to the Fed
eral corporation income tax. The
money they pay out for print paper,
ink, and other materials goes to pay
the taxes of the producers thereof.
Newspapers have never been favored
by exemption from taxes. They have
no desire to be so favored.
What has put into the heads of
some senators and representatives
the notion that newspapers should be
singled out as a subject of special tax
alton, put in a class apart from all
other corporations and property own
ers, and made to pay taxes not levied
upon other similar industries? The
house committee proposed an in
crease in second-class postage rates
that would have been not merely bur-
densome but practically prohibitory
upon newspaper circulation in parts
of the country remote from the seat
of publication. There was an attempt
to justify this proposed increase by
the assertion that the present second
transportation, that the newspapers
are for this reason actually in debt
to the government or undue obliga-
tions to it. Apart from questions
of fact involved, as to which there is
room for much dispute, the obligation
is quite the other way. The news
papers of the country perform sery-
ices for the government that cannot
be measured in money terms. They
disseminate information, they make
the government policies known to the
people, they make daily contributions
to the stock of public knowledge, they
raise the level of public intelligence
They directly and powerfully assist the
government in its appeals to the spirit
and patriotism of the people-as in
the great part they played in the re-
cent campaign for the liberty loan.
Nevertheless, no newspaper wants to
be In debt to the government If the
second-class postal rates of newspa-
pers are not remunerative, let the
government determine the actual
costs OF newspaper transportation,
apart from the cost of transporting
magazines and other periodicals
which is an entirely different matter.
and fix the charge accordingly The
newspapers will not complain of that
within a radius of 500 miles ex-
press companies charge only u cent
a pound for newspapers, one-half the
present postage rate
me proposed per cent tax upon
advertising receipts was another ven
lure IN special taxation upon news
papers. 1t was without any basis in
Justice or sound theory, it singled
out the newspapers as if for
punishment. It was not pro-
posed that any like tax should
be laid upon any other business. Now
| the senate committee has under con-
sideration an excess profits tax upon
| newspapers, progressive in a degree
which would make it burdensome in
the extreme. This tax seems to have
been based upon the theory that news
papers are a war industry. That the
| DRY has no foundation whatever The
| business receipts of many newspapers
may have been increased during the
war, but so have their expenses. The
| increase was due more to industry and
courage and enterprise than to war.
1t is probably true that the war itself
has not directly increased the prop
erty value of newspapers. Unlike mu-
milton plants, they make nothing that
is directly used for war purposes If
an industry is to be taxed on war pro-
fits, 1t must be shown that the profits
| have accrued from war sales There is
no shadow of justification for putting
| newspapers in class with factories
turning out rifles, powders, shells and
| cannon.
The newspapers of the country are
loyal, they have always been willing
to support the government. They are
entirely willing to support it now, they
will give freely of their profits and
| their substance to enable the govern
| ment to pay the costs of war but thew
see no justice in the attempt to single
them out for special burdens, heavi IT
by far than those imposed upon the
majority of other industries. The
corporation income tax has been will
| ingly paid. it is easily collected. That
is an indication of the direction in
| which the government should proceed
in it's efforts TO obtain new revenue.
The newspapers will make no objection
to taxes upon corporate or individual
incomes justly and equitably assessed
upon all business interests in the coun-
try. In any system of taxation that
may be adopted, the precept that it
bis not wise to destroy the sources from
which revenue is derived should be
| kept steadily in view