The Elk Mountain pilot., 1921-03-24
PEOPLE SHOULD BEWARE
OF NEW TAXATION PLAN

The new Congress, just as soon as
the subject of taxation. Big business
is clamoring for the repeal of the in
come and excess profits excuses and
what Big Business wants will, it is
reasonable to assume. carry weight
with the existing government. If
Congress can find any justification for
adopting other forms of taxation the
excess profits tax will go and the peo-
pie will be permitted to pay out of
their slim savings the money that in
conscience the profiteers should yield
from their dishonesty acquired
boards.
The situation has been canvassed
and the only alternative to the profits
tax so far suggested is tax on sales.
1t is said that President Harding will
offer no serious opposition to it,
while leaders in the Congress, Demo-
Gratis as we'll as Republicans, look
upon it as feasible and practicable
means of securing 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 direction. The recent Con-
gres indulged in considerable economy
talk and that is all that it amounted
to. The appropriations made exceed
by S100,00O,00O the expenditures au-
thorized by the previous Congress.
And it is not likely that any material
reductions will be made from depart
mental estimates.
Taxing what the people eat, wear
and use will bring an outcry that will
disturb the serenity of legislators,
and they have little stomach for the
job unless it can be cleverly 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 decently, but to do so it
will be necessary to lay on new taxes.
Then the sales tax will be trotted out
and duly enacted and the people be
forced to assume new and crushing
burden, not for the benefit of those
who command their sympathy and So
licitude, but to ease the tax burdens
of the profiteers who exploited them
during and since the war.
1t is expected that sales tax. such
as has been considered. will yield the
government about billion dollars a
year. 1t will take from the consum-
ing public much larger sum. When
as a war measure taxes were placed
upon certain commodities loosely de-
scribed as luxuries the consumer was
compelled to pay as much as fifty
times the amount of the tax. This
was was notably true as respects to-
bacco, theatre tickets, and soft drinks.
Cigarettes carried tax of ten cents
per hundred, but dealers placed tax
of from l to cents on packages of
ten. The one mill tax was multiplied
from ten to fifty times. The same is
true as respects theatre tickets. A
one cent tax frequently became five
to ten cent burden upon the theatre
goers.
If sales tax of l per cent is
placed upon sales, the consumer can
expect to pay it and an additional
four or five cents to dealers for col
lecting it. That is the. wors. iniqui-
ty of the proposition. The people are
compelled to pay a great deal more
than the government can possibly
get out of the 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 vig-
orous kick while it will count for
something.
Making the poor carry the burdens
of government is not new trick
with privilege. 1t has always sue
ceeded fairly well in escaping its just
share of government maintenance.
Until the excess profits taxes were
imposed. practically all taxes in this
country were Indirectly levied and
collected. which means they were
passed on until they reached the ul-
innate consumer. Excess profit taxes
are taken from those who 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 the cost
of living, they are saying what they
know not to be true or they are dis
honest. assN