The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-10
EYES ON A CANADIAN TAX LAW

Roger w. Babson, whose review
OF economic conditions are pub
lished Monday morning in TIL
Minneapolis Tribune, calls the at
tention OF American business me-
to the sales tax that has been il
effect in Canada since the first o
the year, with the comment that
scientific tax of this kind is wide
ly regarded as a logical solutio,
OF the revenue question in th,
United States.
or the Canadian act, Mr.. Babsor
says:
The new sales tax in Canada
calls for a payment on sales
by importers, large producers,
manufacturers, and, in some
circumstances, large whole
salers. When the manufacture
er pays the tax, however, the
wholesaler is exempt, and
when the wholesaler pays
the tax the manufacturer is
exempt. This will avoid the
pyramiding Of taxes which, UNI
der the laundering system in
the United States. has hurt
business. Moreover, the Ca
madam sales tax does less to
penalize efficiency and threat
en- enterprise than the suicidal
income surtax..... To me this
intelligent procedure in the
raising Of necessary revenues
is one more reason for being
optimistic on the basic out
look for Canada. The United
States takes great pride in it's
progress industrially. but when
it comes to economic policies
we have much to learn from
the Dominion
For some reason not easy to cx-
lain theresis such strong group
rejudice against a sales tax in
lis country that the proposal,
leritorious as it appears in many
avs, has made small Roadway.
as a rule are against it,
nd organized labor does not take
indy to it. There is widespread
.ar that such a tax would pyra-
i'd prices Of commodities as they
re passed along on their several
ages from the manufacturer or
nporter to the consumer, and
ould thereby increase living
'sts out of all proportion to the
necessities. In vain have |
udents of a sales tax argued |
,ainst this idea.
If the pyramiding contention
'sts on a fallacy, possibly a prac-
cal working of the Canadian act
ill establish the fact and give the
lies tax proposal better standing
the United States than it has
I'D hitherto.
In this country there is an un-
rtunate delusiOn that a compare
vely few assume the tax burden
nd that the rest escape share in
No idea could be more erron-
'us. The government may gather
q revenues directly from the few,
1T it does not and cannot prevent
lie few from tapping the pocket
ooks Of the many to help pay the
II. Excessive taxing of the rich
'feats in large measure its own
~ for reasons that ought to need
, restatement here. 1t drives
Ipital from productive investment
to tax-free securities and in
cts the double i'll of curtailing
e governments revenue and of
attracting industrial activities, to
" nothing of increasing the cost
money for expansion purposes
the public utility field.
AS one writer puts it: 1.-The
'ogress of civilization and the
'owth of wealth depend upon the
irit of enterprise and the readi-
'ss of the forceful and the able
take risks. Anything which
checks this spirit of (
'pefulness or hampers the incen-
re to save (for productive REIN
stment purposes) has a very
finite reaction on the whole
'dy economic" !
The sooner we all learn in the
lited States that taxation makes
draft on all incomes, big and
tie. the sooner shall We approx
ate the ideal system Of obtaining
lblic revenues. Minneapolis
'ibune. I