The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-02-11
TAXING THE PEOPLESPATIENCE
WORRYING HEADS IN CONGRESS
They Don't Know How Long the People Will Stand Having Then
Their Bellies and Backs Taxed
(By Charles NJ. Kelley

A cynic once stated that govern
ment is the art of levying and ex-
pending taxes in such manner as to
promote the least discomfort. Any
kind of government will go along
without serious difficulty so long as
it does not lay too heavily upon the
purses of the people. When that
happens, the people become hyper
critical and are much inclined to
fault finding, and then it is not safe
to promote schemes not in the pub
lie interest, but which serve to ag-
gravate conditions already acute.
The present Congress, and its sue
cessor in even greater degree, are
ious thought to the tax problem.
The national treasury is empty and
ordinary government requirements
have been met by the flotation Of
short term notes bearing high rates
of interest. Tax returns have been
large, but still they are this year
two billion dollars short of the de-
mands made upon them. The situa-
ton, unfortunately, is not improv-
ing. There must be heavy reduc-
tions in appropriations, but the most
rigid economy will not bridge the gap
that separates income and outgo. 1t
is Congress- task to discover new
sources of taxation without laying
upon the people burdens that will be
too heavy to carry.
The large interests are seeking re-
lief from income and excess profits
taxes. They are telling congress-
men that the business depression is
largely due to these levies. Business
has been hampered and INSTRUCTED
until profits have disappeared. Thou
sands who have been taking profits
are now recording deficits, and the
government, even if existing tax
laws are retained, will obtain from
them hundreds of millions less than
were collected last year.
1t is probably not unfair to say
that Congress is more than willing
and ready to accommodate the ex-
tortioners and profiteers, but it
doesn't know exactly how the thing
can be done without a hostile re-
action which they are anxious to
avoid if possible. For awhile it
was thought that increased taxes on
luxuries would solve the problem,
but little is to be gained in taxing
Injuries when vast majority of
the people find it difficult to secure
the necessities, and millions are I'M
able to do even that.
Sales Tax Is Favored
In all the discussion that has been
provoked by the nations unhealthy
financial condition, but one method
of increasing income has been adj
vanced and seriously considered.
Everybody-or nearly everybody who
has any influence at Washington -
urges the adoption of sales taxes
taxes on consumption, on what peo-
pie eat, wear and use. This is the
only sure and certain way of getting
money necessary to maintain the ex-
travagant appropriations of Con-
gress. Everybody eats and wears
something, and when all are re-
quired to pay for the mere privilege
of existing, a steady stream of dol
lars is certain to flow into the ma
tional treasury.
The advantage of a sales tax, from
the viewpoint of those who have,
is that it compels every citizen to
bear an equal share of the cost of
maintaing the government. The rich
mans family eats and wears but lit
tie if any more than the poor mans
family. The worker who earns
three dollars day will, with sales
tax operating, probably pay as much
to the government as will Mr.. Rock
efeller, whose stomach is weak and
whose cerature demands are ex-
tremly modest.
If taxes are piled upon corpora
tions or profiteering business men,
they will be unable to function eff
ficiently, it is claimed. But if taxes
are placed upon food and clothing
they will be paid, for men and wo-
the present state of society in any
event. So a sales tax it is going
to be. We are going to maintain a
four billion dollar budget by taking
food from the stomach and clothes
from the back. We are going to get
more money for the government by
giving less food to the population.
There are, however, some merits to
sales tax. The people, when it is
adopted, will be in no doubt as to who
is paying the bills. They We're not
always so informed under a system
of indirect taxation. But when the
grocer, the butcher, the baker and
the landlord all add little to every
item bought and paid for, to be
turned over to the tax gatherers,
nobody will be in any doubt as to
who is sustaining the government.