The Connecticut labor news., 1921-06-03
SENATORS HECKLE WORKERS
 OPPOSING PROPOSED SALES TAX
 BEFORE CONGRESSIONAL BOARD
Penrose and O t h CT S Criticize Representa- tives of People Who Dare to Flaunt Wish es of Big Business.


 The opponents of the sales tax and of the repeal of the excess prOhts tax were vigorously heCkled and crltlclSed by members ot the Senate committee on finances at recent hear1ng- sen ator PenrOSe, chairman Ot the com mittee, opened his guns when W. M: Clark, vice-president of the Order or Railway Conductors ,On behai tot the Railway Conductors, on behalf ot the employees read a carefully prepared statement and criticism of the sales tax and showed why the tax on eN- cess profits should not be repeated MT. Clark stated he represented ooo,- 900 members of the tour railway brotherhoods and was asked by Chair- man PenroSe for his credentialS. AS MT. Clark was completing hlS state ment exposing the lnJusuce oI lle sales tax. Senator PenrOse burst out denouncing what he called SuCa 1T "demagoguery" and tried to shut OH the witness
 When Benjamin C. Marsh appear ed on behalf Of the Peoples Recon. struction League, and the Farmers National Council, Chairman PenroSe called for a list of the members ot the organizations, after MT. Marsh had informed him that the two Organ1za- lions were special unions Ot OrganlZa- lions. and not individuals, to carry out their program. Senator SmOOt Jo1ned in the attack upon MT. Marsh and at temDted to belittle the arguments he presented. Later when MT. Marsh asked Senator Penrose whether the republican party intended to refund the war debt for 40 to co years ana make the workers pay most ot It as well as the interest thereon through consumption taxes, Senator HenroSG completely lost his temper and told the witness to go ahead and not ask questions. He did not deny, how ever, that this is just the intention o1 the big business interests. The adVo- cates of a sales tax and of the repeal of the. excess profits tax were treated kindly and tenderly by Senators Pen rose and Shoot.
 MT. Clark asserted that upon ln- ouiring the opinion of the member ship of their organizations there was a unanimous response opposing the repeal of the excess profits tax and that the members are "unalterably opposed to the enactment Ot the sales or turnover tax law" Calling atten- ton to the fact that there are nearly five million men and women out ot employment in the United States, MT. Clark asserted that out of two mll- lion railway employees in the service under normal conditions there are at present about 5oo,ooo employed or about one-fourth of the total number, while nearly two-thirds of some classes of railway employees are un- employed.
 He stated that the present living costs and economic conditions soWed the seeds of discontent and cause the working men and women to believe that "there is a constant and we'll defined ,well-organized effort on the part of the special interests or classes to escape the burdens of taxation and order that they may add to and con tinue to enjoy their amassed wealth and fortunes" MT. Clark stated that the organizations he represents thought a sales tax such as the big interests want would cost most tamll- ies $2oo a year.
 MT. Marsh stated that a sales tax is moral treason to the purpose tor which we entered the war as stated by President Wilson in reply to the Pope's peace note, to afford all peo- ples participation upon fair terms Ill the economic opportunities of the world" He pointed out that the workers of this country are today paying higher taxes in proportion to their ability to pay than the Wealthlest and that the proposed sales tax IS Tn effect an indirect income tax upon families with incomes of $2,ooo or less with much higher rates than the gov
 T tax upon net incomes of $5,OOo.
 MT. Marsh showed that in the fiscal year 1920 the taxes upon transpOrta- beverages, cigars, tobacco, and manu- factures thereof, admission to movies, theaters, etc, and dues, excise and stamp taxes, and customs amounted to $I,458,3I7,I26. This is an average, per capita, of $I37o, or $68.05 for a family of five.
 A sales tax which would yield two billion dollars will mean an addition to the existing taxes upon the work CTS of the country of an indirect in come tax amounting to 4.25 per cent. on a family income of $2,ooo; 5.7 per cent. on a family income of $I,5oo, and 8.5 perSCent. on a family income of $I 900. This is in every case a tax upon the total income without any deductions. Since the sales tax, how ever, is pyramided, the indirect cost of such a sales tax will be about two to three times as heavy and will amount to an indirect tax Of roughly Y per cent. upon total family in come of families receiving only $I, ,OOC a year.
 MT. Marsh showed that the govern ment could raise all the revenue ii needs for the fiscal year 1922 by ex- isting on consumption and by taxes upon corporation profits, and direct and rapidly progressive taxes on in come and estates, and a small tax or the value of land and other natura resources speCulatively held. These sources would yield six and a half tc seven billion dollars. The committee did not like MT. Marsh's presentation of cold facts showing the COnCentra ton of wealth in the country, and who should pay the money cost of the war Here are some of his figures:
 Each of the 245 individuals who re ceived an income during 1918 O $5oo,ooo or more, had on the average an income of $399,350 left after pay ing his income tax last year, while the 3,oI3,8I6 persons and familie! having incomes of $I,OoO to $3,ooC had an average of only $I,926 left.
 The 246 persons who had an income of $5oo,ooo and up to $5O,oOo, 900 therefore had left on the average, 20; times as much income apiece, after