The Washington times., 1921-06-14
SALES TAX DEAD
SAVE TO SM00T,
HAPGOOD FINDS
Writer Calls Plan an Attempt to
Spare the Rich and Make
Consumers Pay.
by NORMAN HAPGOOD.

Our dear old friend, the tax on
sales, who looked 80 ruddy few
snort weeks ago, Is dead. Drop
tear. This advice was heralded as an
easy way OF making us forget that
we had fought war and had to pay
for 1t. Great is the disillusion.
Senator Reed Smoot is a hopeful
man and he does not know his friend
is dead, but he Is almost the only
one who can hear any signs OF life.
why did II die? The answer is much
easier than 1t was in the leading case
OF Cock Robin. The sales tax died
because the longer IT was discussed
the more embarrassed became those
who had the Job OF defending 1t.
To Clarence Darrow. famous defend
er OF unpopular clients. a sympathetic
friend once said:
Amt it awful to be misunder-
stood?"
Yes" said Barrow. but not SO bad
AS to be understood"
i am not discussing the absolute or
relative truth about the sales tax.
am merely reporting the facts. The
important fact In this case is that the
longer this particular baby sat for Its
photograph the less decorative the re-
rsult became. Now hardly anybody
except Senator Smoot wants to have
anything to do with the friendless or
phan.
DISASTROUS DATA.
1t takes a little while to get bill
through Congress. The people who
wanted sales tax had their hrst
inning. They seemed to be scoring.
This will raise a whole lot Of
money" they said. You won't notice
you are paying IT."
why not?" said the other side.
Because you will only pay It when
ever you buy anything. 1t won't
come as a tax, only as an addition TO
the price. Everybody who buys any
thing will pay it. Then We can DO
away with the excess proffts tax and
the special taxes on higher incomes.
That will remove discomfort.
"Oh, will it?" asked a lot OF people
all at once.
The statement was freely made that
sales taxes were working magnih-
Gently in France. Canada. Australia
and the northwest part OF Tlmbuctoo.
Investigation. however, produced dis
asst rous results. 1t seemed that what
were cal led sales taxes were different
aItocether from Mr.. Smoot's tax, and
also doubt was cast on the magnln-
cence OF the results.
Mr. Smoot's tax operates on every
sale. sonnet lines an article Is SOLO
thirteen times or more, In the process
Of manufacturing and distribuuon-
before IL reaches the consumer. The
larcest trusts are what we echolare
call integrated. That 10, those or us
who run the steel trust and such 90
not have to buy and sell all along the
line.
.TuE RIFT IN THE Lutte"
w. control our SOURCES of raw ma
terial. our minea our railroads, our
factories of all kinds, 80 that from
the mine to the consumer Ia all one
r.ries of operations. under our con-
t.ol, without a sale. Where com
rctitor would have to pay a sales tax
eleven times we have to pay II once
is not that pretty hard on the or
d.nary producer. competing WIN ehe
trust" the objectors broke In
Maybe was tho answer, but IN
tepration is a good thing"
The obiectors did not know what
l,rtegration meant but they tried an
other questions:
"Do you mean that taxes especially
fsvoring monopoly are good thing
The conversation began to be en-
bsrra.sing. The argument seemed to
develop into the statement that as
;!ch people would avoid taxes. and
call them deterrcnts to production
the attempt should be abandoned to
TAX the rich and the principle accept
ed that the ordinary consumer should
ray the whole bill. since he has to
consume. and tho rich man does not
tave to produce so long as there are
t.x-cxempt bonds around loose.
Somebody suggested tnat II con-
sumption tax was near to the hearts
Il our rulers they might get up some
croice ones that felA heavily on large
and expensive luxurIeA- The soions
turned pala
That IL tho story. The ultimate
truth IL not in my office. But the
fact Is clear. The general tax on
sales Is dead