The Washington times., 1922-02-18
Sales Tax Wins Bonus
Fight
n RESIDENT HARDING has won the Bonus fight
The President has won it by his letter to Co

We congratulate President Harding He has done the
courageous thing, because all the money interests
against the Soldiers Bonus
He has done the right thing because seven Of ten of
the plain people of the United States are in favor the
Soldiers Bonus shown by all the popular referendums
taken many States from the Atlantic to the Pacific
The only chance the opponents of Soldiers Bonus have
had to win has lain in side tracking the sales tax
They didn't want the country to learn of an easy way
to finance the Bonus.
They tried to persuade that couldn't have Sol
ders Bonus without nuisance taxes gasoline tobacco
amusement tickets, stock and real estate sales and the
like.
When the people in protest those taxes these
gentlemen said that then should have issue bonds
to pay the bonus.
Result Liberty bonds slumped
THAT WAS THE IDEA of the opponents of the Bonus
Scare the citizens
When the President said bond issues the gen
temen said that then could only pay the Bonus by
stripping ourselves of weapons of defense, sashing
the army and navy dscharging the graduating classes
at Annapolis and West Point.
They trying to get Uncle Sam to go out of his
mind looking for his shoes.
And all the time they on his feet.
Now the President points out that important fact
The situation requires no wzardry of finance.
Just simple general sales tax Of one and onehaf per
$4OOOOOOOO which Soldiers Bonus requires the first
year.
Under misapprehension certain farmer and labo
organzatio have stood against the sales tax.
Every farmer, every laborng man, every citizen wi
understands the sales tax becomes its friend
The one and one-half per cent tax is levied ON ON
TURNOVER of certain commodities.
1t is collected from the manufacturer, not fro
successive middlemen So it means exactly and
half per cent
The tax is small that in cases the manufacul
will absorb it. In other he will pass it
consumer.
When he does you will pay a tax of ~ cents on
pair of So shoes. Your wife will be taxed OIL
Sc hat
Many articles will be exempt from the tax incudin
farm products. That 49, most foodstuffs exempt.
1t is to be assumed that Senator Shoots sales tax BIZ
of last November will be the one passed.
1t specifically exempts amy farmer to the product
of his farm"
We call this to the attention of farmers who have
been told that the tax is aimed at them
Is this sales tax burdensomeY
Don't take any ones word about it.
Look the border to Canada where the sales
tax is in operation.
They have precisely the tax as is proposed here
But they have per cent tax need only " per cent
So, if the sales tax is burdensome, Canada ought to
feel it twice as hard we shall.
Canada ought to feel it than twice as hard she
is poorer than we.
Listen to the way the Canadians feel the BURDEN
This is Stephen Leacock professor of economics at
McGill University, Montreal:
The wonderful the tax
the practically
Ask Canadian abou the
will But question him he
puzzled Is he
exactly what it is, or who it.
That's how they suffer in Canada a sales tax
twice as high is proposed here
Prof Leacock's testimony echoes that of hundreds of
Canadians of all classes interviewed by the Congressman
who toured Canada Mr. Hearsts guests last November
investigating the working of the sales tax there.
Sales Tax and Bonus. They stand and fall together
The President has said it,
Any compensation legislation enacted at this time ought
provision del
FIND MYSELF UNABLE TO SUGGEST ANY COMMEND.