Great Falls tribune., 1921-05-16

nal Gases n which they do nat p
these taxes because The origina
taspeyer has 40 means Of shtttin
the tax 70 those who buy bis good
or services ON account Of the fas
that they have no goods OF service
to lend. Such = case would be tha
Of . retired person living entireI
on m annuity % small that he hs
no savings Or money to lend =
interest and who consumed his ca
tire income. Such 4 one conld nc
shift an Income tax or any othe
tax levied on him because he ha
nothing to sell to the public H
ID Z consumer pure and simple m
not 4 producer. But it il safe :
say, that 95 per cent OF all tn
taxes levied for federal, state, eoun
". or city purposes are shifted t
xhe ultimate consumer OF good
and services. 81
Mr.. Babson in discussing tn
sales tax and the opposition to !
In congress. says:
Business and the investor
alike have much at stake IN
the present situation. World
wide liquidation, enforcing the
trend to lower money rates,
doubtless will domiuate ma
tional influences. But ill-
advised legislation now can de-
lay and handicap America
against her competitors. There
is no uncertainty a. to the
present major influence on the
minds. at Washington. The
Farmers union and other in-
terests. have joined in pro-
nopncement against a CON
sumption tax" They ignore
the economic fact that the
present income tax is, in
effect a consumption tax 1t
is estimated that allowance for
federal taxes carried into busi-
ness costs is the basis for about
23 per cent Of average retail
prices, whereas a turnover tax
could reduce this to not over
3H per cent, of retail value.
Nor should the point be missed
that the latter figure is all
that the government now really
RECEIVERS. The rest Is dissipat-
ed in business extravagances.
waste, and expense attendant
upon computation and collec-
ton.
We do not know how Mr.. Bah
son arrives at the conclusion tha'
federal taxes carried on to retail
prices amounts to z3 per cent o1
those prices. Off hand, it woule
seem to us that this 10 a very ex
travagant figure, but there IL NJ
doubt in our mind that our presen'
federal tax accounts for a consid
cradle factor in retail prices, ane
raises the cost Of living to all oi
us to an amount many times ths
sum total of the tax the govern
ment collects. That sum At pres
ent, il about three billion dollars
We are merely guessing when NJ
say that to get that three billion
into the treasury cost the people
of the United States twelve billiot
in higher prices paid by thu
consumer. These prices contain
not. only the tax reckoned in u
m element of cost Of production
but the producers profit on the
extra cost. And not only, his profi,
on the tax as he hands it on in the
price, but the profits of half
dozen others who handle the pro
duct and make 4 profit before thu
product reaches its final consumer
And not only the tax and all th<
various percentages Of profit OF
the tax, but the cost OF eomputa
ton, no slight addition goes into
the retail prices.
It may be that Mr.. Babson Il
correct when he says 1t comes te
23 per cent Of retail prices. though
he does not explain how he arrives
at that figure. But 1t is higl
enough anyway. whatever the rea
per cent may be.
Mr.. Babson is Of the opinion
that the sales tax would only
amount to about 3H per cent OF
-