The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1921-11-17
ASK NEW TAX REFORM
BY Francis f.. Warren

lILOilOl . 1NOJC-I dDCIS Ls WdIiC
Is chairman of the committee on al
preparations for the United States sci
ate. AS the nation knows this mean
he must be a man of unusual ability
of a wide knowledge, Of keen appre
citation of financial problems and stu
atoms and an expert OF economics. o.
him rests a responsibility hat woul,
stagger the average man and to hin
there looks 100, 600, 900 citizens for the
wise distribution of the vast sums t.
which they contributed
With congress in a turmoil over pro
posed important changes in our rev
enue laws and being swamped with
oceans of advice from economists
real and theoretical-with unfavorable
business conditions, signs OF depres'
sion, stagnation, passing of dividends,
withdrawal of money from investment
and failures here and there, the only
clear ray of light is one that points
out the why of the condition and that
why seems to be the present methods
Vi tdAIlS luIOllICS olu CANSSO plVhbob
methods So drastic that in some cases
they amount to practical confiscation.
Figures, often tricky things at best,
indicate that with $4,000, 900, 900 on de-
post in this country distributed among
1900, 600 depositors that every depos-
itor should have $50 and every inhab-
liant $62. On the face of 1t this may
seem a small sum for the average
"free-born American to show for a
period of toll that may be many years
yet taken in comparison with the av-
erage of only $158 per depositor in the
worlds figures of savings it is to be
seen that we citizens of u. S, A. did
heed the warning, guiding cry of war
times, economy, thrift and conserva-
tism."
With savings depositors to the num-
Der Of one-tenth of our population;
with Liberty bond holders estimated to
number between fifteen and twenty
millions-less, Of course, than there
were during and Immediately follow
ing actual war times-we may safely
depend upon the stability of our cor
poration and believe that our Tom
Joneses and Bill Smiths and Other
stockholders are not holding a listen
ing ear In the direction of the voices
that preach radicalism, communism,
or some other ism, by whatever name,
that may propose departure from the
safe and sane policies of our govern
ment.
AS Observation-Disclosures, all of us are
keenly alive to the fact that, in the
interest of good business and the
smooth running of corporate ma
chinery, we must raise money for our
expenses with the least possible dis.
turbance to business progress il we
would attain the highest success.
Much has been said and written
about the tax scheme in Canada, which
has without doubt brought into the
Canadian treasury a huge sum, and APP
parentiy nc burden has been felt by
the taxpayers. Indeed, one writer re-
ferred to the levy as "a painless tax"
and. II any truth can be truthfully
called painless, the sales tax Of Canada
seems to justify the description. 1t
became effective in May, 1920, and. in
it's FIRST year Of operation, levying a rate
OF two cents on the dollar, yielded $780,
000, 900 in revenue. A similar levy In
III country would, 1t Is estimated,
yield about 100000. 900 annually. With
out doubt it would be fair to all;
would put a premium upon economy,
and yet could not be said to carry
any extra imposition upon the lux
uries and extravagances of those who
do not want to be economical. The
in other words, would be
universal; the collection would be eco
nomical: chances for dishonesty and
evasion would be minimized.
But regardless of the fact that our
,wn country has already had consid-
srable experience with sales taxes as
imposed by the acts of 1917 and 1918,
he administration of which has been
satisfactory and successful, there
Gems to be a h~esitancy on the part
4 congress to do away with the oner-
us, annoying lines of taxes so diff
ult and expensive to collect, and to
dept instead on trial - some
ort of sales-tax plan.
Chambers of commerce. business
commercial organizations of all
orts throughout the entire country,
nd many individuals generally. have
dvocated the proposition as the most
Intelligent. ~fairest. and least oppres-
i've Of all forms OF taxation. The in.
orsefnent of many others would no
oubt follow IL more thought were
iven by the a of taxpayers to the
act that the men Of modest incomes
re really finally paying the big sur
axes of the rich--for 1t is a fact that
he more the latter's incomes are
axed. the more is added to the price
( the product from which such in
ONES are derived. A sort OF endless
hahn affair, and vertically a chain that
a. us all bound tight!
How much better would be q more
--As a4r&wsH,1<ic - ar A.r~aon