Evening star., 1920-06-23
PAINLESS" TAX,
HIDDEN IN SELLING
PRICE, ADVOCATED
(Continued from First Page.)


directly and visibly added to the cost.
Low visibility in taxation is there
fore very desirable. provided It does
not interfere with an equltable dis-
tribution of the burden: and since
the rich man benefits. the community
by reinvesting his income IN pro-
duetiye enterprise, it hardly seems
equitable to tax him on more tnan
the spends for his own HVlnS ana
luxury or the support ana ehJoyIiehl
of those who are dependent on nm.
"All the rest he has to leave here
when he dies, and the 1nherltance
tax that his estate has to pay sum-
ciently penalties his success to re-
imburse the state for the cost OF pro-
;tecting his property.
"If this view of the case is accept
ed we must conclude that con-
sumption tax. sugar coated. so ina
il will not revolt the consumer is
the most satisfactory metnod that
can be followed ito raise the revenue
that We must have.
-. But to be sugar coated consump-
and included in the price charged, SO
that the buyer will not realize that
he is paying a tax every time ne
purchases paper OF pins or oo%eit
eggs. The difficulties IN the way OF
;mnosine such a tax are not great,
fnr II is easy to discriminate between
what we spend and what we save
between our consumption and our IN
veStments.
Put Charges on All.
"Everythirg that is produced FOR
corsuuontion use or comfort, wheth-
er il be wheat, jewelry or an efecoric
fan, ought to pay tax that won III
be included in the price charged TOT
If and turned over to the government
nv the person who sells il. This Is
the procedure followed in the case OIL
the tobacco tax, which OF all the
taxes now paid is the Zhaast oppressive
and the esleaAt resente9.
Our domestic trade for the year
|191S is estimated by DR.. b. M Ander :
son of the National Bank OF Com
merce in New York. at $6s.0oo,0o
and our foreign trade in the same
year was $9,1S0,000 10000.
This total of about $4,000, 900, ,000
represents, as I understand II. the
value of the merchandise produced
and sold at home or abroad anu I'M
ported for sale here
"Jn it's progress from the producer
to the consumer through the success
siye stages of it's manufacture or DIS
tribution this mercha ndise changes
hands an average OF ar least TOUT
times and probably more before II
reaches the final buyer. This gives
nS total OIL over SoVu,eVo,VoV'"oo as
basis upon which to calculate ou1
tax rate Two per cent upon thls
sum would yield a revenue OF $4,000.
OoO. 900, which is more than we neec
and far more than we realize now
from the income and excess profts
tax"
.In some few and highly composite
articles, such as an automoolie, ths
increase in cost due to cumulative
taxation might be as much as IL OF
16 ner cent but in the case OF sim
DIer things. like bread and meat, thf
| increase would not be more than
or 6 per cent, and the fact that eacf
successive transfer imposed an al
ditional tax would tend to discourage
-reculation and eliminate the inter
| meSiaries,, who now levy such
/ heavy toll upon the DISTRIBUTION O.
many staples . ,
of the tax rate were reduced TO
! nojnt at which the resulting revenue
| would be no greater than the sum w
] now collect, the cost to the communlt! I!
| could be no greater, but the burdel
would be so widely and So event!
distributed that it would hardly o.
! felt. and the great manufactures
Who now plead the excess profits ant
| inco1ne taxes as an excuse for pront
eering would be deprived of the fun'
/ that they use at present TOT ao"er
Using and forced into more equa
| competition with the smaller pro
| ducers.