Norwich bulletin., 1920-06-19
TAXING WHAT WE SPEND

her revenue on a substantial foundation,
 and to recognize the justice and practical expediency of taxing consumption as well
 as effort and risk. In doing so much
 she has at least shown an ability to meet
 her problem in a practical way, which so
 far We, long regarded as practical peo-
 pie, have lacked. Are we much longer to
 refuse to meet our similar problem clear
 eyes and sanely with a determination.
 first to insist upon an economical ad-
 miristration of our government expendi- |
 lures; next, basing of our revenue
 upon what is sure, stable and productive |
 then, a levying of taxes that will rest | where they are intended to fall; and |
 further, freeing of initiative and enter | prise, together with a restoration Of com petitlve forces which have been in the past |
 the occasion of our rapid growth and de- | 1 VeIopment, not only physically but in the 1
 increased well-being and happiness of all
 clements in our citizenry Signs are not | altogether wanting to show that such an awakening to civic consciousness and practical common sense are at hand.
 I these signs mean anything, they
 mean that we are beginning to apprecf-
 ate the results of our present camoufage taxation, and that American common
 sense, practical habits and intelligence are seeking to be rid of the makesiiift
 war taxation and find a practical sound
 American way of meeting our obligation. recognizing that we do not regret the oc- caslon for these taxes, that we went Willingly into the war in defense of our ? honor and principles have paid the price Tn blood, the most priceless thing we nave, and would not shirk the money u price. and that it is not a question of
 | the obligation but of how 1t shall be met t in a manner just to all and with an ap- n plication which will not add unneces- F sarilly to the burden.
 l. Can such a a way be found2 Certain. 5 ". When we begin to tax what peopl, e spend instead of what they save we ar,
 on the right track. All the physical ac 'f tivities of life are renected in buying ant T selling, and tax on tha turnover O ' commodities is based on something nor, e substantial than a tax on income O ,t profits Such a tax rests where it fl d intended to fail, and does not lend if
 self to concealment or a shifting of tn, is burden as does the taxing of endeayo y and risk through taxing income and prof Id it's. It will take the place tS so f11icl Is of the present taxation as is directed a d those elements and reduce the high cos r. of living because the loading of price e, to meet an undetermined tax reearde l. as contributing 25 per cent of the pres 1t ent imitation of prices, only a portion Q g. which added percentage reaches the gov l. ernment, will be replaced by definit re tax which in it's most cumulative forr 's from producer to consumer will rareI le reach even 3 per cent. on the final re ,h tail price, all of which goes to the gov r- ernment
 h. If we admit that It is desirable t v adopt a method of taxation which wi
 free endeavor, release the operation c ,d natural laws, rest where 1t is intended | as fall and define the taxpayers liabiiit r. so that he. may understand it, and if V a recognize that having adopted an incom ,e tax amendment to our constitution W sd are committed to taxation of income n- then it seems as if the solution lies in n- proper adjustment between income an ,s consumption taxation which may be a, 1T complished by CD a base tax restin to upon consumption in the form of a ta of l per cent upon the turnover of con # nodities from producer to consunier co af lectable monthly or quarterly, from tf st vendor upon his gross sales as records 4 upon his books, compelling the keepir S of a proper record and leaving it to hi
 U to absorb the tax or pass it along as a addition to his invoice (2) A normal ta
 at fixed rate upon corporate and ind ie vidual incomes above d definite e&em H H tion; (3) surtaxes upon unearned ir1con to as measured by the capital which pr p duces the income and allocated by a d oii finite formula; (4) certain excise taxe U such as the existing tobacco taxes su ie plemented by customs duties on irnpor II, III and certain other special taxes. but elir ne mating the present excess nrofts tax 'o' corporations, the surtaXes on earned de come and certain of the most objectio o- able and least productive of the prese Of so-called luxury taxes.