Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-05-06
A TAX ON CONSUMERS.

A great deal of criticism has been visited upon
: those members of congress who have advocated
tax directed toward articles consumed by the public
instead of being levied upon the excess profits or the
large corporations
Let us say at once that we not in favor of
increasing the burdens of the consumer. If some
one will show us way to tighten these burdens we
will support it,
However it will be apparent with only. small
consideration, that the consumer is paying the pres
ent tax and that bringing the tax into view will
not harm the consumer but rather will, in some re-
spects he wholesome and beneficial
The corporaton, for instance, which has been
accustomed TO making a profit OF 100000 an
nualIy in ante-war days but would now have to pay
tax of 100000 out of its profits merely adj
vances prices to meet the tax and is in most IN
stances still earning its SO 900 600 net with an
, added amount for the bother of collecting the tax
The consumer pays it in the increased cost OF his
goods purchased, plus the costs of the merchant In
carrying the extra investment
There can be no doubt that present system
of taxation is very large factor in the increased
cost of living.
The peculiar psychology of the human mind is
shown by the fact that the manufacturer actually
feels that he is paying the tax, for he himself
* earning perhaps $4250,00O and giving $3.50 600
in taxes He therefore feels that but for the tax
he would have the extra sum and that consequently,
i he pays it,
The reflex OF all lnlS upon MS HllIu is ~ iihc
him feel that his efforts at expanding his business
20 are retarded by the governments taxing system
Therefore his activities are diminished
Were these taxes levied upon each article we
buy and merely added to the cost, as when man
now buys a nine dollar hat and discovers that he
pays forty cents tax upon the cost in excess of five
dollars, we would know exactly what amount of
tax we pay. We could then, by the use of our
minds, plan to hold expenditures to such items
necessary and least subject TO tax The
tendency would be distinctly toward inspiring that
much needed virtue economy.
1t would also direct attention daily to the
scandalous extravaganza of our government since
the war. The public outcry would rid the
government departments of some $4,000 useless en-
ployes in Washington and of other extravagances.
We say, the effect would be wholesome.
As it is, a considerable portion of the public arc
gullible enough to think the corporations gen.
orally paying the tax and the people are therefore
perfectly complacent about the public expenditure
of the money. The ostrich with his head in the
sand has nothing Because cannot see
ourselves pay the tax we feel we are not paying it,
The man who fails to list his assets and liab-
ties for fear he will confirm his suspicion that he
is a bankrupt is poor business The people
OF a nation who do not wish to know how much tax
they really paying individuals only lap
ahead of the sheriff.
We especially advocating a consumers
tax. We only pointing out the real absurdity in
the position of people who excited over its
possibility.
The learn that taxes and national
banking and running government are subject TO
the same simple rules of close supervision intelligent
management and thrift that apply successfully to
our private affairs, the sooner will solve Amer
icas economic problems. There is royal
road economic soundness than there to learning.
Alexander Hamilton or who ever it was, who
suggested that the federal government reserve to
49, itself the right of indirect taxation and leave the
states to support themselves by direct taxation was
not only real financer but also some student
of fool psychology.