Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-16
FRIDAY EVENING. DECEMBER Is. 1921.
Farm BUREAU RESOLUTIONS.

FRIDAY EVENING, DECEMBER 16, 1871. So
FARM BUREAU RESOLUTIONS.
At the third annual convention of the Ameri-
can Farm Bureau held at Atlanta, Georgia, the
following principles relating to a national tax poll
cy were incorporated in the resolutions adopted:
I'VE heartily endorse the following principles
as the foundation of our national tax policy.
L. "The measure Of ability to pay taxes for
the support of the national government is net in
come, and the bulk of the taxes should be levied
and collected on that basis.
2. "The tax should be progressive that is, the
greater the income the higher the rate.
3. A this is a country OF all the people, all
the people should have some part in supporting
the government; hence, a certain part Of the reve-
nue. may justly be raised by means of consumption
taxes.
T. While recognizing that the first coosidera-
tion in any tax measure is the raising of revenue,
its collateral effects must not be lost sight of and in
so far as, it is practicable the taxes should be so laid
as to tend to the distribution of wealth in the hands
iof the many and not to its concentration in the
hands Of the few.
s., w are opposed to the issuing of all tax
free securities, and request that congress submit a
constitutional amendment to the several states to
cure this defect in our tax system. We disapprove
The repeal of the excess profits tax. We are OPP
posed to>the principle of a general sales tax, or any
similar plan such as the general manufacturers tax
~ With the exception of the last two sentences in
the fifth paragraph quoted above, the policies
enunciated are such as must commend themselves
TO the people of this country as being sound and
feasible. That the principles can be carried out
with exact equity, is not likely, because perfection
to be reached at any time in the near future. But
insofar as the declarations themselves go, they set
forth a policy which is sound and thoroughly de-
zsirable. The sentences to which exception may be
taken relate to the repeal of the excess profits tax
and the principle of a sales or manufacturers tax.
The .eycecs Or06fs fav h,s heep de$euded ~ tho
fgrour1d that it is a means whereby the people of the
through their government NAV exact from
particularly fortunate individuals or corporations a
part OF the extravagant earnings which may be
made by such individuals or corporations under ex-
##tremely favorable conditions. During the war
period, when manufacturing and production gen
...erally were on an unprecedented scale of both cost
and return, profits were cratic. The government
was in need of immediate funds, and at least a pos
Esible defense of the excess profits tax may be made
.on the ground that it compelled a sharing of profits
which could not be forced in any other way, and
that it provided Oh the instant considerable reve-
Hnues OF which the country was greatly in need.
whatever may be said on this point, the period to
which these considerations apply has passed. The
country is, we hope, at least approaching a normal
business basis, and the normal procedure will be
Tor all taxes levied upon production whether under
sglise of excess profits taxes or otherwise to be fig
hured in as part of the overhead expense and to be
in the price which is charged for the goods.
u NASAS 40 ~ " O. NAAOWA ~ AAO1l i LAX DldC-
ing OF this tax burden upon the consumer of the
goods can be avoided. Legislation can not pre-
vent it, nor can any economic arrangements which
be devised stand in its way. The excess prof
Its tax, therefore, is paid and will be paid by the
consumers OF goods involved in the transaction.
The revenue derived from this tax has con-
sstantiy been diminishing. It has now almost reached
the vanishing point. The amount which will be
collected under the excess profits tax for the cur
rent year will be almost negligible, and if the tax
should be continued, the returns would be so SLIGHT
that they would scarcely be worth taking into &C
count The tax does, however, operate as a hin
.drance to proper business development. The
country therefore under an excess profits tax plan
IS leyying an additional tax on all the people be-
cause the tax must be passed to them. It is levying
a tax from which the returns are 50 slight as to be
considered OF little value, and in doing these things,
It is obstructing the normal and natural progress of
business which is so essential at this time.
OF the sales tax in any of the several forms in
which it has been recommended, it may be said
doubt. In a general way, we believe that there is
recognition Of the soundness Of the principle in
tyofved, but the application Of that principle is so
shedged about with complications that many ex-
HP4ienced men doubt the feasibility of any plan
which may be devised to put such q tax into opera
ton.
NAVAL PACT "A CERTAINTY.
Unless tie ainforeseen happens, the agreement
limiting the size of the worlds three great nayies
and estabDshing the ratio among them Of 5-5-3, will
.sbe signed BY the ENJOYS representing the United
States. Great Britain and Japan before today closes.
he plan proposed 81 ecretaryggHughe on
dthe daysaot thc opening 81 the present conference,