The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-03-19
BEWARE OF NEW TAX PLAN.


The new congress, just as soon as
it assemblies, will address itself to the
subject Of taxation. Big Business i.
rlamoring for the repeal of the income
and excess profits excuses and what
Big Business wants will, it is reason
able to assume, carry weight with the
existing government. If congress can
lind any justification for adopting other
forms of taxation the excess profits
tax will go and the people will b,
permitted TO pay out of their slim
savings the money that in all con-
science the protiteers should yield from
their dishonesty acquired boards.
The situation has been canvassed AMI
The only alternative to the profits tax
so far suggested is a tax on sales. l.
is said that President Harding will
offer no serious opposition to it, while
leaders in the congress, Democrats as
we'll as Republicans, look upon it as Il
feasible and practicable means of Sc.
curing money that the government must
have if it is to carry on at the present
rate Of expenditure.
There is something to be said in this
connection on the subject Of economy,
but little may be expected in that d.
rection. The recent congress INDUCED
IN considerable economy talk and that
is all that it amounted to-. The appro.
priations made exceed by $l00,000,000
the expenditures authorized by the
previous congress. And it is not likely
that any material reductions will be
made from departmental estimates.
Taxing what the people eat, wea:
and use will bring an cutlery that will
disturb the serenity of legislators, and
they have little stomach for the job
unless it can be cloverly sugar coated
and made more palatable. The sugar
coating, it is expected, will take the
form Of bonus for former service
men. Congress will let the world know
that it wants to treat the soldiers d.
Gently, but to do 80 it will be necessary
to lay on new taxes. Then the sales
tax will be trotted out and duly en-
acted and the people will be forced
to assume a new and crushing burden,
not for the benefit of those who COM
mand their sympathy and solicitude,
but to case the tax burdens of the
protitccrs who exploited them during
and since the war.
1t is expected that sales tax, such
rs has been considered, will yield the
government about billion dollars a
year. 1t will take from the consuming
public much larger sum. When as a
war measure taxes were placed upon
certain commodities loosely described
rs luSnrics, the consumer was COM
PEELED to pay rs much as fifty times
the amount of the tax. This was not
ably true as respects tobacco, theater
tickets and soft drinks. Cigarets car
Tled tax of 10 cents per hundred,
hut dealers placed tax of from | to
cents on packages Of ten The one
mill tax was multiplied from ten to
fifty times. The same is true as re-
spects theater tickets. A onecent tax
frequently became 6vc-ten burden
upon theatergoers.
If sales tax of per cent is place |
upon sales, the consumer can expect
to pay it and an additional four o.
dve cents to dealers for collecting it.
That is the worst iniquity of the propo
sition. The people are compelled t.
pay a great deal more than the gov.
eminent can possibly get out of til
proposal.
But that is what Big Business wants
and, as stated before, it is likely what
it will get, unless the public can be
aroused to make vigorous kick while
il will count for something.
Making the poor carry the burdens
Of government is not new trick with
privilege. It has always succeeded
fairly we'll in escaping its just share o:
government maintenance. Until the ex
cess profits taxes were imposed, practi
cally all taxes in this country were
indirectly levied and collected, which
means they were passed on until they
reached the ultimate rons,,mer Exoos.
profit taxes are taken from those VIII:
make large incomes, and they cannot
get away from them as easily as they
would have the people believe. When
they say that these taxes increase ths
cost Of living, they are saying What
they know not to be true or they ar
dishonest.