The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-08
MONDAY. NOVEMBER 8. 1920.
The Government Must Tighten
Taxes Which the Pablo Pays
Over and Over Again.


Taxes that are vicious in principle,
taxes that are cumulative in practice,
taxes that are excessive in exactions,
pile threefold burden on the public.
They subtract from the fund out Of
which the public has TO pay its bills
and make both ends meet. They di-
minlsh the supply of commodities
which the comfort. convenience and
health of the public require. They
increase the cost to the public of that
diminished supply of commodities.
The unsound and oppressive taxes
diminish supply of both necessaries
and luxuries by diverting large CAPT.
tai from the productive fields of in
dustry and business TO the wasteful
uses of Government squander. Pro-
duction cannot increase, production
cannot hold It's own, production must
industry and business are both plen-
tiful and cheap. Production cannot
stand still, when there is an increas-
ing population, without lacking up
prices. Production cannot lag, even
though population does not increase,
without grinding the face of the pub
lie on the stones of want.
Furthermore the unsound and OPP
pressive taxes, diverting large capital
to wasteful uses and thus diminish
ing the available money supply neces-
sary to the conduct of legitimate in
dustry and business, intensity the
borrowers scramble for the dimin-
ished supply of loanable funds. The
Immediate. the costly and the danger
GUS effect of this is to run I'D the in
terest rate which manufacturers, mer-
chants and public service agents are
compelled to pay for the bank credits
which they must have to do business.
These high interest rates, like the
direct taxes themselves, must 60 into
production costs and come out to the
consumer as increased prices.
As for the taxes themselves, in their
direct application they will always be
magnified and multiplied wherever
they are levied on industry and bust
ness. The original producer, say the
manufacturer, that is taxed promptly
puts the amount OF the tax with some
thing to spare into his selling price
and passes 1t along to the jobber.
The jobber, getting his goods from
the manufacturer, pays the manufac-
turer's tax, which has been passed
along to him, but he puts 1t into
his selling price He also puts into
his selling price his own tax which
he himself pays directly into the
Treasury
The wholesaler. getting his goods
from the jobber, pays both the manu-
facturer's and the jobber's taxes.
which have been passed along to him,
but he puts them into his selling price.
he also puts into his selling price his
own tax which he himself directly
pays into the Treasury.
The retailer, getting his goods from
the wholesaler, pays the manufac-
turer's tax, the jobber's tax and the
wholesalers tax, which have been
passed along to him, but he puts them
all into his selling price. He also
puts into his selling price the tax
which he himself pays directly into
the Treasury.
Then all these taxes which have
been rolling up like SNOWFALL come
down upon the ultimate consumer get
ting from the retailer his goods tied
UP with the magnifed and multiplied
taxes all In one bundle. He can't
pass them along to anybody else. The
passing Is at the end Of It's run. He
can't dodge them ms long as he eats
food, wears clothes and pays rent.
The ultimate consumer has got to
shoulder this load Of magnlfied and
multiplied taxes though 1t gall his
very back.
If a spendthrift Government col
1ects in unsound taxes an unnecessary
billion of dollars to put to wastefuI
uses 1t may easily cost the public FIVE
billions OF dollars. IF IL collects an un-
necessary two billions OF dollars ID
nay very easily cost the public ten
billions Of dollars. And this national
Government of ours has not been put
ting to wasteful uses merely n billion
Of dollars year. The waste Mt times
has been at the rate Of two, three,
ave billions year. The Government
has squandered and misused. all told
tens OF billions OF dollars First and
last, the cost TO tho American people
must be scores Of billions Of dollars.
But the Republican administrative