The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-02-28

which Il q OPEN aud tho diniculty of
~ operation. lnditr-d. u may be found
upon due Investigation that the com-
plicntigns involved woatd he such ~
to h. decisive against the adoption OF
tina suEuteafiun.
Thc simplest and most
tive vas. naturally. wonid be- Co ma
poSc a very small a on the turnover.
clutputrd quarterly 0r Hcmi-nnnunlly,
uf sales of commodities aud products
all along thu line. frum first "a last.
a. any rate. whatever ma b. tho
differences Of opinion ~ 10 the Nnri-
nus ways OF applfing a sales tau. I
feel c%onfidcnt that a. far as the prin-
ripic OF such n tax h concerned. n
RfCat majority Of the mcn cnEnncd In
business, large or small. would well
coinc Il.
n tho Ways and Means Committee
Of were 10 consult on the
subject with duly qualified represen-
tatiyer OF business associations and
agricultural and other organizations.
no great difficulty should be found to
devise the best. most productive and
least troublesome way ana method by
which a tax Of that general nature
should be made operative.
II may he Objected that such n tnx
8 finally passed on Ia tile consumer.
No doubt u y. No - the hulk Of the
rNccss profit taN. No.. lea tile end, n
practically every business taN and. to
a great extent. cN~n individual axes.
And the burden on the "
I always Cumulative. innsmuch as almost
every article before 10 comes to him
passes IN ough several different
landings In the process OF being
converted from the raw material 20
the finished article on sale. and each
u OF those concerned In that pro-
cess seeks 10 add 10 the price a pro-
portionatc percentage TO over his
taxes. AZ least In part.
The sales tax would aggregate q far
smaller burden by the time 10 reaches
the consumer than q prevailing ar
ray OF taxes. u wolid weigh far
more lightly on the rank and nie
than do the results OF our existing
taxation. AZ present, apart from
various minor taxes, corporate busl-
ness pays 10 per cent income tax and,
In addition. excess profit taNas UP 10
IS per cent In federal income taxes
alone.
A trifllng sales tax on the huge vol
ume OF commodities changing hands
annually would yield so vast a revo-
nue. that n would enable h excess
profit tax and practically all other
D HNNNNN NNNN ANN|AAN'|| ~ 1872" -
hap The corporate income taxi to be
eliminated. surfaces IN individual in
comes TO be- greatly reduced and fed
eral taxation of income up to. say
$4,000. TO be abolished altogether.
The result would be "a great reduc-
ton In the cumulative percentage.
with which prices are now loaded
la meet taxation. that b. To say. there
would be bound to en7uc a lowering
Of prices all round. Competition
would SEE fo that. n. contrary to all
expectation aud precedent, IL should
not do 80. other agencies Will
Another advantage OF the sales taN
is the great simplicity OF ita working
and the dcnniteuoss OF its application
especially as compared TO tho NcNa'
uoua. uneven und unfair WORKING ol
the excess profit taN.
Furthermore. TO collect such a tna
requires ittle expense, no complicat'
cd bookkeeping. no intricate SEIZED
ulos. no lawyers and accountants
services. and no army 81 government
employ cs. 10 can be Increased or de-
creased in short order and withoul
any resulting economic disturbance
according TO the financial needs oil
the government.
II "a I per cent tax produces toe
much. Il b. "a very simple process u
decrease % hy an appropriate percent
age. II u produces too little a SINAI
additional percentage Will yield IN
sum needed.
We have had a two-years' test nov
Of a scheme Tor raising rcvenu'
which Is ~unscicntfic, Inconsistent an'
m-designod and has as It's principa
characteristic the taxation OF business
and co%nstructively employed capital
where. The result is writ lCrEc IN IN
where The result is writ large In IN
high cost OF living, Industrial an'
economic d~islocatiOn and social DIS
content-fOr all OF which our tax
alton policy is "a strongly contributory
though, OF course, not the sole. cause
In common with all right-thlntinl
men. / desire very earnestly "a SIN
cerely to see the burdens of the poo.
and those Of moderate means tighten
ed 10 the utmost extent possible,
1 realize but too well that the LOAF
weighing upon those whose incom'
has not kept pace with increased cos
OF things has become Utmost intoleI
able. 1 welcome every means com
patible with sober reason % IN
Test Of experience and with nationn
welfare. 10 remedy that situation %
at least Co mitigate IL to the limit "
our ability.
But I am entirely convinced Una
/, crushing and bungling taxation o
ctpitnI and industry - not the wa.
, 20 accomplish hat result. ! am con
WINGED. on ,ho contrary, that sue
taxation rs bound to rebound 10 IN
dctrimont ct $40 the people.
Il extreme surfaces on Income
and our excess profit taN had the ct
foot OF breaking the vicious circle o
prics-boostiug and waEo-hooHtlns' J
+ these taxes had power To eliminate @
curb 'pruutoeuns' much might v
/, forgiven Them.
But experience has proved that no
only have thcy mo such cnect ana n
such power. but indeed they nay
. tended o. greatly intensity those eNll'
70 deal with these uoNiouN INNS
measures Of quite "A different natur
are required.