El Paso herald. (El Paso, Tex.) 1901-1931, 1920-03-02

MOT Until methods OF assessing FEDERAL taxes are
Tss5Ted expect the cost Of living to decrease
n any permanently satisfactory degree.
The bef relief may obtain from the loss Of Europe
as customer for our food products prove to be
permanent benefit to the working people Of the country,
for the that Europe can't buy food it is certain
she can't buy anything else. And while It IS highly desr-
able to restrict the expectation Of the prime necessities to
Europe beyond such amount as they absolutely must
have I've IN order that people be supplied
prices they can afford to pay nevertheless 1t IS fact
that American products generally especially machinery,
railroad equipment clothing shoes and other things
factories ont IN large quantities not marketable
Europs must either find other markets in the Oent
and thousands Of workers VII be out Of jobs So
best bet for prosperity is to keep factories running
credit
The most sensible way to reduce living costs imms-
daey is to reduce federal incomes and
profits and distribute the federal tax out over the entirety
Of business At first blush may absurd suggest
tax sales, it sounds nightly ike consumption
tax But the situation this the government needs reve-
nue. and the public needs relief The best way therefore,
Is to spread the burden al sales IN such way that
pinch win not be felt anywhere
tax Of one percent say sales would not hurt any
body The Manufacturer could add the percent to his
sales jobber to his and the retailer finally, could add
blanket surchaTge OF percent to his normal profits
This be would not have to do each individual article
he now has to do with uxures at great deal Of expense
trouble and also danger Of the law He could add the
one percent On the basis of the volume Of business
month and include It in his retail prices. This would it is
tine be passing the tax to the final Consumer, but It
Is TIE consumer Who pays the tax anyway and under
system Of taxation ne pays vastly ore tnan ne
would have to pay for the reason that the enormous income
and luxury taxes passed down to the consumer whether
they should be OF not
sample Of how the sales tax would contrast IN its
operation with the present luxury follows An
age Of percent is added directly, VIII assume, TO e5
percent Of the goods sold any ordinary place Of business
nat means that SO purchase additional ST IS paid
If the merchant fails to collect this tax and
pert Il and pay II 10 the government he IS liable TO fine
imprisonment both IF any careless clerk negects to
collect and report the tax, the merchant IS liable Inc Work
q collecting reporting, segregatng and paying this tax
entails endless bookkeeping and is In every way expensive
to the merchant The merchant naturally adds this
the Price not only Of those goods which there is lux
my tax but also TO all other goods he has for sale This
effect If not IN theory adds three four percent to
the price Of an articles the public has to BUY, thereby
psnang The buyer Of necessaes along with the buyer Of
luxuries.
In the case Of income taxes the consumer again pays
the BIZ IL the long run The who has income of
$4,000 taxed about ss500 that income Of
when his income derived in the form Of interest he has
No RECOURSE But If it IS derived from dividends returns
from investment IN merchandise from rentals he IS 60
ing make the consumer pay What most men with $780,
COO incomes would do and do do is add to the prices Of
whatever he derives his income from enough TO make his
after the tax Is paid much it would be
no tax were placed upon it.
If the exemptions were raised another thousand dollars
both single and married and then certain reason
able and uniform tax levied al incomes IN excess OF
these exemptions, the consumer would get relief from this
quarter
from Inheritance without seriously burdenng the
public Estates Of mors than $4,000 could stand grad
uated when acquired BY heirs Provision should be
made however, for membranes.
Finally It is absurd to attempt to make this generation
psy the governments debts period Of years covering
ordinary lifetime at least should be set for the retire
ment Of Obligations excepting bonds which cal for redsmp
ton at the end Of periods already agreed and stipulated
n the bonds.
If Great British and other allied nations could be
PEELED to give Us some negotiable security for the billions
We have let them and which they haven't paid
cent Of interest five years, and If something could be
collected new and then share Of the indemnity
which Germany IS supposed to pay, these with the Teduc-