Belt Valley times. [volume] (Armington, Mont.) 1894-1977, 1924-04-10
TAXES MUST
COME DOWN


tana is a recent article in The Ma
TONS Business, written by Lewis E
Pierson5 chairman of the board
Irving Bank-Columbia Trust Com
pany Of New York, of which the fol-
lowing is an abstract:
1t is estimated that the national in
come-the combined earnings of the
entire country-amount to about
SOS, S,000, 100000 year. Out Of that
5s billion dollar income, the Ameri-
can public is being asked to contribute
more than seven billion dollars to
maintain its national, state and local
governments. Out of every hundred
dollars that an American earns. he
must, therefore, pay IL dollars to
some government official before he
can buy anything for himself or for
his family.
According to the official figures,
there are 100000 people in the
limited States who are above the age
of 16, and who are employed in some
gainful occupation and who therefore
represent the nations earning power.
Since the year 1918 the federal, state
and local governments have added
$27, 1000, 100000 to their debt, thus
making a total government debt in
the United States Of $4,000, ,000. 900.
This Notwithstanding that the bur-
den Of debt and taxation can be even
" distributed-that every workman,
every stenographer, every clerk and
every mechanic in the country is in
debt for his government to the ex-
tent of s787. This obligation must
be paid through taxes.
In the business communities of the
United States there is a profound
sentiment for immediate tax reduc-
ton. The business men who under
stand the full import of $32,OOO,-
100000 debt ad a yearly tax bill of
$7,00000O,O00 recognize the menace
to prosperity which these huge fig
ures represent. II IS not the business
man alone who demands tax reduc-
tion The farmer, the workman, the
clerk and the mechanic are beginning |
to understand that taxes play a con-
siderable part in the high cost of liv-
ing. Somewhere and somehow every
dollar of the $7,0OOOOO,0OO we pay
each year in taxes tends to increase
the price of the commodities Of COM
merce and is consequently reflected
In living costs.
Let us suppose that, from causes
we cannot now define, the United
States should begin to fall from its
present prosperous state into con-
tinued period Of depression and hard
times. Let us further suppose that
the National Government failed to
and continued or increased
the present high rate of taxation. We
know that during the brief period of
depression in 1921 unemployment
rapidly increased and federal income
taxes were in a vast number of cases /
paid out Of borrowing or past savings /
instead of out Of current earnings.
We know that there were thousands {
u instances where the amount of the /
federal income tax meant the differ {
enee between profit and loss. Our
experience shows, therefore, that re- ,
iuction in taxes represents, according
% the amount Of the reduction, insur-
ice against unemployment, and that i,
he more taxation increases the great !
T possibility there is Of slowing down !,
and Of throwing men out Of
york.
The American people win mark and /,
those representatives who
Indicate by their action on tax re-
luction plans that they think more Of
ancied political advantage than they !,
ID of national posperity.
MONTANA TAXPAYERS ASSN. :