The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-03-05
SALES TAX IS
PAINLESS, SAYS
Prof.. LEACOCK
Would Start Business in U. S.
Like Cop Strengthening
Traffic Jam.
BY f. j. CLAPP,
An Interview With Stephen Lea
cock. World Famous Humorist
and Political Economist.

ana fOtlttCdt ECONOMIST.
| had talked with different bust
ness interests in Montreal with
reference to the working Of the
Canadian sales tax. They all liked
it: the only criticism was as to
minor faults in administrative de-
tail. These faults were being rem
edied. / had talked with private
citizens Of all classes. The sales
tax bears so lightly that most of
them did not know that the tax
existed. l could get no complaints
from consumers.
Prof. LeacOck's Views.
Then I found an interview Of q
very different nature had been ar
ranged for me. was to meet Ste
phen Butler Leacock. B. A., Phi. D.,
f. r. C. g.. Lift. D., l.. L. d. He
Is head of the department OF politi.
cal economy at McGill University in
Montreal. and Is one of the foremost
economists in the British Empire.
The professor is likewise the lead
Ing Canadian humorist. He gets his
glory as a teacher; he makes his liv-
ing from magazine editors and news
paper publishers, by being the Mark
Twain of Canada. Imagine Mark
Twain in the department OF econo-
mics at Columbia! ~
l found Stephen Leacock awaiting
me at his club. A typical college
professor. he sat in q deep leather
chair.
Professor" I began nervously.
What about this Canadian Sales
Taxi"
He put me at my ease:
Painless Dentistry.
Simplest thing in the world. 1t
is painless dentistry. You get the
tooth out but the victim never
knows II. Perhaps l could describe
the sales tax as the anaesthetic In
Canadian taxation. Same difference
between II and our other taxes as
between old fashioned. painful sur.
gerry and modern painless operations.
Both get the same result. but ask
the patient which Is the more pleas
ant method?
Just what do you mean" asked.
not being able to leap as rapidly as
the professor from clinic to tax
levies.
I'll illustrate. We used to hay.
a luxury tax on all suits over $40.
II you bought a suit your bill was
for $40 plus tax. The tax was
showed under your nose. 1t hurt.
Today there Is a 3 per cent tax on
clothing. paid in the first instanc"
by the manufacturer. When the TAX
reaches the consumer. 1t is includ-
ed in the price OF the suit; he does
not know OF II. The tax Is sewcd In
the lining of the coat. not pinned on
the sleeve. OF course in a great
number OF instances the tax is
absorbed by the manufacturer. mid
dleman or dealer. II is paid out or
his pocket and never reaches tho
consumer as a price increase.
Income TaS Evils.
That's all righ,, Professor Lea
cock" l said. THE sales tax may
take II from the taxpayer when ha
isn't looking, but II .akes II just the
same, and takes it rom the common
man. 1t is aimed at the poor man.
We Americans WON'T stand for II.
Compare the sales tax with the In
come tax, which is the tax Tor
democracy. every one paying &C.
cording to his ability, as evidenced
by his earning power
"All right" he agreed, III COM
pare the sales tax and the income
tax. You say the income tax is
collected from a man according to
his ability to pay. No. 1t COLLECTS
according 10 his ability to conceal.
Certain incomes the Government
can easily ascertain; for example,
the incomes OF all people who have
salaries, like professors. With the
best Of intentions the professors,
teachers. public servants and sat
aired employees OF corporations can
not lie about their income. They
nav on all Of II. Who doesn't pay
The rich man who has the ABILITY
doesn't pay. He makes his money
from business profits like sto:K
deals, and you can't ascertain that
income. The rich man has the best
lawyers in the country to help him
conceal.
THE income tax may be said to
establish a competition in dishon'
esty, and the little man hasn't a
chance in that competition. vi
course, the Government can devise
an elaborate system OF swearing
for the citizen to perform. The
swearing may ruin his temper and
II may damn his soul. but 1t doesn't
diyuIge his income. The income
tax is making a world OF liars
Worse than prohibition?"
queried.
almost as bad. But please fol
low me. II the income tax gath
erers do discover the rich mans
income they find much Of It comes
from tax-exempt bonds.
Sales Tax Equalizes.
Consider the thousands Of new
ly.rich that constantly fill the
hotels in New York and throne
its shops for purchasing the most
EXPENSIVE things they can find
Does the income tax reach these
people? Not much. The way e
get them Is by an expenditure tax
a sales tax.
1T was telling you that the sale.
tax act in practice as the income
tax acts only in theory. 1t taxes
only according to ability to pay, evi
denced by expenditure. 1t take,
that part of the rich mans income
which we want to tax because hi
Is using Il for his own selfish ad
vantage. 1t doesn't tax that par
of a mans income which he does no
spend but invests.
Invested money goes into produc
tive enterprise. That gives employ