The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-04-22
NEWSPAPER WAR TAX SHOULD
BE CUT

Analysis demonstrates that there is
nothing to justify the retention Of ex-a
cessive war taxes on newspapers and
periodicals. It is generally admitted
that publications have become an in
.separable part Of our national life.
There is nothing to supply the place of
the home paper or favorite periodical,
and nothing can compensate their in
fluence,. A vast. majority of American
citizens are dependent upon the press
for intellectual companionship, because
reading is the foundation of knowledge.
The repressive policy of the govern
ment as manifested in continuing war
taxes is essentially ufieconomical and
demoralizing to the publishing indus
try and the reading public.
The war revenue bill Of 1917 carried
a provision imposing increases on Sec
ond class mail matter as an emergency
measure. The provision was written
in the law without hearings or investi-
cation, under pressure for war rev.
ehue. although the wisdom and justice
OF 1t were questioned and its operation
offered for a year to permit this revi-
sion. The promise to revise was never
kept. Since the ending of the war all
other taxes, with the exception of the
estates tax, have been removed or
modified by congress. Failure Of legis-
lators to heed the appeals of newspa-
per and periodical publishers has nat
urally reflected itself in the revenues
of the postofffce department
1t is estimated that the publishers
will pay the government for carrying
their papers more than $33,000,000 dur
ing 1922. The publishing industry has
been obliged to Withstand deflation in
common with other branches in bus
mess endeavor. However, other indus,
tries have been relieved of the burdens
Of war taxes and are naturally in a
better position than the publishers. The
government collected from the publish
ers $11.712,06s.1S in 1918. and in the
than doubled, reaching a total of $685.
496, 1884. These oppressive taxes
have cut millions of dollars from the
postoffice earnings, because the
larger publishers have found it posi-
BILE to use private means of distribu-
ton at less than the government rate.
Repeal of the last two postal increases
will have a tendency to restore this
traffic to. government channels.
|, Unlike other Industries, it is impos-
sible for the publishers to split this
tax. It Is absurd to suppose that tax
can be passed on to the advertiser who
uses the daily or weekly newspaper or
periodical The advertising rate of a
publication is determined, not accord
ing to the cost of delivery, but accord
ing to the number of subscribers and
their potential buying power. This adj
vertising rate is always governed by
competition with rates for advertising
In non-mail and, therefore. untaxed
such as billboards and circulars. There
Is no good reason why the publishers
of newspapers and magazines should
be singled out to pay this extra war
tax. -
Moderate postage rates would keep
the newspapers, invaluable means of
intellectual intercourse. within reach
Hof ALL The publishers are asking for
the repeal of the last two increases.
those which went into effect in 1920
eand 1927. This relief. if granted by
congress, would retain the rates Which
were, in effect Just prior to these In
creases. Legislation for this purpose
would give the government, IT'S per
cent more than the prewar rates, and
would not relieve the publishing indus
try of one cent Of the other federal
taxes now paid by other industries. In
other words. publishers of newspapers
and magazines are not asking for pref
erential treatment, but for justice, in
order that they may continue. as an In
tegralspart of our, Socia andseconomic
efT3A y" Frsx