The commercial. (Union City, Tenn.) 190?-193?, 1921-05-27
Chautauqua Week Here June I4-2I
at Redpath Chautauqua

being added at present to anticipate
the excess-income tax in force. On
| a $50 article, such as a suit of
| clothes, the sales tax would be SO
cents. Distributed between wool
grower, mill, wholesaler, and retail
er, the suit could still sell for $50. On
the multitude of small purchases Of
ono dollar or less, the per cent is so
small, it cold not increase the re-
tail prices z would not be burden
on the seller, who would gladly alb
sorb it, as his Nearly tax would be
less than at present. The Illinois
Credit Association voted against a
sales tax, on the ground that many
dealers were now selling at less than
cost the goods bought by them at
war prices. But should a postwar
condition, which is unlikely to occur
again for years, we hope never, stand
in the way of a lasting improvement?
And anyway, the sales tax could not
go into operation this year, and re-
adjustments should be pretty well
accomplished within ~ months. Adj
mittedly, sales tax would not be
welcome to a business being run at
loss, which now pays no taxes. On
the other hand, the business of the
country is run at profit, and los
ing business cannot last very long in
any event. The payment of $4,000
on annual receipts of $1,000,O00
would make very little difference,
even if that million receipts showed
a loss. No tax system can ever be
devised which does not hit here and
there. The present one seems to hit
everywhere and is full Of injustice
and inequalities, for which there has
been and is no relief whatever.
The best test of anything is the
verdict of those who have used it. A
sales tax of l per cent has been in
force in the Philippine Islands for
the past 10 years. For the first few
months it was UNI popular, but ever
since it has met with favor. Any
tax system which is allowed to con-
tinue for Is years in a country
where t h e taXpa yers have
any voice in the matter, must
be pretty good. The Fillipinos even
have under consideration at the pres
ent time an increase in the rate to
2 per cent, in substitution for all
other taxes of every kind 1t may |
dent our pride as financiers to bor-
row a tax system from our distant |
who, in years past, have
had more publicity az head hunters |
than economists, but is it reasonable
to suppose they enjoy tax7pating
any more than we, and there is the
record of Is consecutive years as ev-
dence. Whatever our views, we can't
get away from those Is years of sat
SIZED taxpaying.
OF course it cannot be denied that
skilled accountants arc hardly neces-
3ary to check off the two points, nor
hat an audit of a firms books could
be made in as many hours
Is it now requires days. The depart
nent is steadily falling behind (the
'eports for 1918 have just been
and this means still fur
her increase in help. With the sales
ak, the greater part of this work
would vanish, and most of what re-
mains can be performed by much
ess experienced and less expensive
Jerks. Some would try to evade
heir tax, but it would be incompar
bly, easier to detect theim, and after
IL not so many of us are unpatriotic /
r trying to fiimflam our Uncle Sam
lei. Remember the IS years.
@B