South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-01-17
BEYERIDGE SAYS
BUSINESS NEEDS
TAXATION REFORM
Declares Sales Tax Is Only
Logical Stimulant to Re
vive Industry.


"everldgo. IN an address tonight az
the Kiwanis club and the chamber
~ commerce here. made an appeal
f.r the adoption OF the sales tax
method as the needed change 20
emulate business
The sales tax IS q genuine tax
son the rich. The man who buys ex-
penSivc automobiles pays from five
90 30 times more tax than the man
who buys a "flivver." the man who
wears high priced clothing pays
from two 20 10 times as much tax
rs the man who wears ready made
Garments. the woman who adorns
herself with rich gowns rare furs
and costly Jewels pays from a hum
d~ed 10 a thousand times move tax
Than the woman who dresses more
mpIy.~ Beveridge said
The TOlicy Of taxation Of incomes.
profits and other taxes on capital
reserves was condemned as sure
way 10 exhaust the needed money
to stimulate business.
Therefore excessive taxes on in
comes and profits. etc. solely and
exclusively because IL is wealth.
fain 20 injure the well being or all
the people. Farmers will not have
Che markets they should have work
ing men viii not have the employ
ment or wages they should have.
merchants will not have the trade
they should have no element Of
the business situation viii be as it
should be until such taxes are re-
duced 90 the lowest possible point
In place or them we should have
81 nOn-cUmulative sales tax Canada
has sales tax. and the people like
10 better then any other kind OF
tax they ever had. The same is
true in the Philippines wherever
the sales tax has been tried 10 has
heen found satisfactory. II does not
burden the people: and il does slim
ulate business because it does re-
lease Investing capital
1T removes the motive for invest
ing in taN-eXempt securities. one OF
the greatest perils of the present
day. IN piling up the colosseI mu-
ricipal debt by the issuance OF city
county and state bonds. we are
amusing economic and social OK
plosives that viii rend the eusting
order at some future day.
THE only argument against the
sales tax is that it viii raase prices:
hut that ~ not the case. on the con
trary. it viii actually lower prices.
Az present taxes on business are
added 20 prices. and added secretly.
under cover. The people 10 not
know the process-they only feel the
Effect i'm the high cost OF living.
But 10 take mans money
merely because ne has nuch Of 1T is
not true taxation. but real couds-
alton. The idea is not so much to
raise revenue. as 90 dissipate wealth.
The strange thing is thai any
body should advocate such mscien
t.fc and ruinous fiscal policy i'm view
OF the fact that &c has been tried in
every age throughout the history OF
taxation. and always produced the
same disastrous result. and i'm view
&C the further fact that 10 rs operat-
ing iD the same evil fashion TO-DAY
wherever il is beinE practiced
Government owuershipp and OF
Grafton must mean the maintenance
aud management OF transportation
a., the expense and 20 the injury q
an OF us except railway labor whicr
small percentage Of all OF u.s.
The next step that must oe TAX
cu tc improve business - the extern.
sion Of agricultural credits the en-
engagement OF community borrow.
ing. marketing and purchasing by
farmers. and the prevention oil
urice-hNlne by greedy combinations
Thcs, complex and difficult prob.
.ems have been worked out years age
l other countries. and the task ol
our law makers will be made easier
Icy The examples thus Furnished
them. they have little more 90 dc
tlsn 10 adjust 20 American condi
lions the methods which work sue.
cesSfully elsewhere
Even when all this is done. Tho
farmer cannot prosper until bust
ness becomes active The farmer
market depends absolutely on active
business. factories running labor
employed. mines in operation. stores
and shops and banks and all usefu
human activities fuuctioning stead
ily
And this happy and essential de-
veIopment cannot come without the
energy rhat drives our whole eco.
nomic system That energy IS in-
vestinE capital whatever Gloss rho
tree flow or investing capita, hurts
business and reduces prosperity. IN,
chief interference with the working
90 investing carital is by unwise tax.
alton
The whole science OF government
under the existing order is the ad-
iustment Of taxation so as 10 FER
mit capital 20 function normally
That IS why excessive taxation
% incomes profits or other taxes
that exhaust capital reserves. al
ways reduces prosperity That i:
why taxation or business always
tends 90 bring hard times and. q
too heavy. is certain 20 bring hard
Zines
No, Conditions cannot and must
not be permitted 70 continue as they
are. To IS not rirht that the farmer
should be compelled 20 produce food
- a loss. and after the years toll
be unable 20 paw even taxes ON his
land. 20 say nothing OF his debts.
"It is both wrong and dangerous
for millions OF working men 20 bs
die. instead they should be EN-.
uloyed At reasonable wages
II r. intoIerable that factories
should be closed and business mer
driven frantic 70 devise eNpedients
FOR keeping or ~ the rocks. enter
nrises which they have buuded by
lifetime or thought effort and In
dIstry.
The road back ito prosperity vii
Doc long and hard. but lei us az least