Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1921-05-23
THE TURNOVER TAX.

No system Of levying taxes can be de-
vised that will be absolutely fair to ev-
erybody or that will satisfy all tax
payers. The best that can be done is
to provide ways and means for the
raising of the necessary funds with as
little dissatisfaction as possible and in
a manner as nearly equitable as can be
worked out.
It may as we'll be understood all the
time that taxes generally must come
from the people. Attempts to put the
burdens upon the few Of great wealth
usually fail. The right principle is to
place the burden according to the
wealth of the taxpayers and that prin.
ciple is the rule in the levying OF local
and state taxes. The rule is not always
scrupulously observed by tax levyins
bodies and there are instances, many OF
them, where the wealthy escape their
just share of the burden.
Congress sought in the enactment of
the present income tax law to make
the rich pay heavily and provided for
almost confiscatory taxes upon corpora
tions and individuals Of excessive
wealth. However, it has not worked as
expected. On the contrary, the tax
has been, as a rule, carried on to tho
consumers, with many additions, while
seriously Gripping business enterprises
and resulting in the pyramiding of the
cost of living. SO unsatisfactory has
the excess profits tax worked in actual
practice that both the old parties com
mitted themselves to it's repeal in tteir
national platforms of 1920.
But some method of raising the
money to take the place of that raised
by the excess profits taxes musS be
devised and congress and the admin
istration will not find the problem easy
of solution. No matter what plan is
suggested there is much opposition and
men gifted in the art Of propaganda
at once become busy trying to show the
country that the proposed plan is
wrong in principle and would in prac-
tice work injury to large portion of
the people. Those authorized with the
duty of revising the mode of taxation
must use their best judgment, create
the best measure they can, enact 1t
into law and abide by the consequences.
If they build wisely time will vindicate
them, if unwisely the school of exper-
fence will prove it. Build they must
and the sooner the work of construc-
ton is completed the better will it be
for all concerned.
Some Of the best authorities in the
country who have undertaken to figure
out just how much the present methods
of taxation add to the cost Of living
place the amount at from 20 to % per
cent. Roger w. BabsOn, the we'll known
and reliable Massachusetts statistician,
places it ut % per cent. He puts the
addition to the cost of living through a
one per cent tax on sales at only 31a
per cent. If a sales tax is carried on
to the consumer, as it very likely
would be, the rich would pay much
more than the poor. 1t costs many fam
lilies of the wealthy from $4,000 to
$4,000 per year to live. These fam
lilies would pay much more taxes than
the families that expend from $1,000 to
$1,000 per annum. The excess profits
taxes cost the consumer something like
% per cent while men who have given
the question serious and painstaking
consideration believe that the sales
tax would cost the consumer only
about 81 per cent of his annual living
expense. If he expended 81 600 in living
the tax would cost him $50. The pres.
ent system costs him approximately
$3.50, according to Mr.. Babson.
THE SLACkER'S MOTHER.