The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-06-03
THE TAX QUESTION.

Next to a reduction in freight rates,
which now seems probable. a revision
of the federal tax laws ranks in i'm
portance. Congressional committees
are supposed to have the matter under
consideration. but with little prospect
that anything will be done this year.
Detailed recommendations for the
REVISION of the internal revenue laws
99ere addressed by the secretary of the
treasury on May / to Representative
Fordney, chairman of the house ways
and means committee, and Senator
Penrose, chairman Of the senate
finance committee. The secretary ap-
pears still to cling to the view that the
rich can be compelled to bear the
bulk of the tax burden. He would
repeal the excess profits tax. His crit
icisIn of the tax is that\it is complex.
and difficult of administration and ~
losing its productivity. 'In fairness
to other taxpayers, and in order to
protect the revenues he would have
this tax replaced by some other levy
on corporate profits.
The Lawmakers, in 1917, started
ing the rich pay for the war.
Income taxpayers took to the woods.
and thru Investment in tax-exempt
securities have deprived the country
of funds for industrial development.
The courage to undertake business en-
terprises was destroyed because prof.
its would be largely absorbed by the
government and losses would have to
be borne individually. Money for
business enterprise has vanished.
We must still raise vast amount 20
run the government. The tax on
sales is the only sound relief in sight
The contention that in adopting the
turnover tax. which is a consumption
tax, the burden is taken off the rich
and put upon those of moderate means
is a fallacy; because the burden is al
ready on consumption.
1t is impossible to believe that bust
ness has not used, and is not now US
ing, every possible means to pass taxes
on. under the present system.
Can any one conceive that a bust
ness man, while he would take into
consideration all his other expenses
rent. clerk hire. advertising. transpor-
tation, etc.-would not include also
an amount for taxes as near as he
could estimate them2 And, further,
as that estimate would be a pure guess
under the present obscure methods.
would he not be apt to overestimate
them and to pyramid his price. if he
could get it?
In fact, in an investigation of prices
under the Lever act, the department
of justice arrived at the conclusion
that the pyramided profits taxes add
ed 23.2 per cent to the price to the
consumer.
But no one will contend that the
merchant or manufacturer will not,
even now, take into account his nro-
spective taxes. He must, if he is a
good business man, just as he must in
buyers market give consideration
to his rent and other overhead. Care
fully worked out statistics show that
1 per cent turnover tax. from raw
material to consumer. would add only
21z to per cent to average retail
| costs.
| Thus, with the present system add
ing 23 per cent to living costs. the
benefit to the consumer would amount
to 20 per cent, if the excess profits and
surtaxes were repealed and the 1 PEI
cent sales tax put into operation.
The agitation by opponents of tho
sales tax against taking the tax of
the rich and putting it upon the poor
is q political hoax.
I
No. Vor1- tx,-1-tf1- o1,oa~, q