The interior journal. [volume] (Stanford, Ky.) 1912-1984, 1917-06-08
TAXING NEWSPAPER REVENUE

The publishing business is manu-
featuring business of a peculiar
character. The publisher has but
two articles to sell: the paper TO sub
scribers; space in this paper to ad-
vertisers.
Probably no other manufacturing
business is conducted on profit so
small compared to the gross receipts
of newspaper.
Of every dollar the railroads re-
ceive IS cents only is used for the
conduct of traffic and for all of the
incidental expenses of the transpor-
tation business; 35 cents goes to pay
taxes and the capital in some form
that is, the business is conducted up
on a basis of so per cent. gross pro-
| fit.
Yet it is proposed in Congress to
impose upon the publishers 9 per
cent. tax on advertising, the chief
source of its income. The proposition
as applied to gross receipts for cos
metics, chewing gum and automo-
biles was abandoned: No one has
heard or any prUpOsitiOn e>-Ss.-~ -
gross earnings of banks, commercial
houses or the great manufacturing
interests of America. The publishing
business is singled out for an excess
sive and an exclusive tax on gross re-
ceipts.
The publishers are rot asking ex-
emptions of any kind They are per-
fectly willing to stand any tax deem
ed necessary by the government,
provided always that like tay is
imposed upon men in other branches
of business.
This tax on gross receipts precedes
any tax on income; in some cases
it would make any income impossible
and in all cases will reduce the in
come of newspapers seriously. A
large part of all the government gets
from this tax on gross receipts II
will lose by reduction of income.
The injustice of this tax must be
apparent, as there is no possible way
of fixing the ratio of expense to in.
come. In other words, the tax viii
fall with a differeat weight upon
every newspaper establishment.
1t is not conceivable that members
Of Congress will look to this item al
a revenue item. 1t is punitive meas
ure, primarily. 1t originated in the
bureaus of the Postoffice, who fol
twenty years have been arraiCnint
the newspaper business in an effor
to make its use of the mails impos
sible.
The Senate Finance Committee re
iected the suggestion that the ta'
bill be used for the purpose Of re
constructing the business Of tn
Postoffice. 1t must, therefore, be con
sidered solely as a tax measure, ant
30 ~ &c dis
criminative, unequal, unjust ant
most injurious to perfectly legiti
mate business, the greater part O
whose revenue goes to the employ
ment of labor.
If any one would suggest tax o
2 per cent, on the gross earnings o
coal, regardless of where the Goa
was produced or whether it was har'
or soft coal, his suggestion would re
ceive no consideration. In 1918 tn
average" price of coal in the btu
minous field was S1.01. In the an
tracite field it was about SO; but !
varied in different mines, in differen
sections Of the country and in the diff
ferent sections of the State. A 2 pc
cent. tax amounting to about 2 cent
bushel, would be most unjust and
revenue proposition most burden
some. There would be no excuse TO
such a tax. Certainly no one woul
single out the coal business as an oh
iect of w~ath, and it is used as a
illustration of the injustice Of thi
proposition.
II would seem impossible tina
such a measure would seriously b
reported to the Senate. II ought I