The Delta independent. [volume] (Delta, Colo.) 1886-19??, 1924-01-25
BUSINESS MEN DO NOT
REALIZE CONDITIONS
TOO MUCH BOOSTING
BY Willard Fairlamb.

The principal trouble is in the lack
of understanding of the average voter
and taxpayer. So many persons think
that they do not pay any taxes merely
because they never are notified to call
at the office of the County Treasurer.
The laborer and the farmer and tenant
and others on that order think that
this tax question is entirely one for
the property owner. One OF our
County Commissioners said to us
when We were advocating tax reduc-
leaguers are not in the majority.
There are at least two persons who
are interested in having taxing boards
soak 1t to the taxpayers so as to make
employment and to take your money
so it can be expended for public pur-
poses, to one who wishes tax reduci-
ions" Now, many taxpayers really
believe that such is the case There
is an apathy on the part of our bust
ness men concerning tax reduction,
which is caused solely by their failui ;,
TO fully understand the situation. Our
business mems associations, Rotary
clubs. Lions club, Kiwanis organiza-
tons, etc, are committed to the cons
tant boosting for public improvements,
wholly regardless OF the effect Of their
ill-tmed and inapportionate actions.
Most OF this agitation goes for i'm
provements in town and cities As a
whole. men do not realize the Incl
deDre ~ TOWN tayaa Taxoe ,,-, ,o,,-r
property usually are sale taxes on
commodities. Let us illustrate: The
landlord fixes the rent at which he
can lease his property at the usual
rate OF interest on the investment.
plus taxes, plus insurance. repairs, and
an allowance for deterioration or OBJ.
solescence This total sum he divides
by IL and fixes the rent on that basis
He is justified in doing so by princi-
Piles OF business. Unless one can get
reasonable rate OF interest for his
money, surely so one would invest in
business property. Therefore. there is
no danger OF competition by more
capital entering into the construction
OF buildings to make competition and
lower rents unless a reasonable re-
turn on the capital invested can be
secured. But by this very law of
economies the tax on the business
property is passed on to the tenant
We will suppose that the tenant is a
grocer In figuring out what he must
earn during the year in order to make
his business pay, he has TO add to the
clerk hire the amount of rent which
he pays his landlord. his insurance
and an allowance for losses on &C
count OF bad credits or casualties. and
TO this sum he must have his own lf.
ing expenses, including the tax on his
own residence. We will suppose this
sum equals $4,000 total and his an
nual turnover for the year is $4,000
In order TO make his own living net
he would have TO make profit OF %
per cent on the $40, 900 cost OF goods
Thus. the merchant passes on The tax
OF the landlord and for himself and
for his own residence to the consumer
In other words It becomes sales tax.
All property used for business pur.
poses in the same way passes on the
tax 20 the consumer. Some are IA fav.
or OF levying high taxes on railroads
Il requires no demonstration that a
tax on railroads Is purely and simply
a tax on transportation facilities. Re
gardless OF the Esch Cummings law
which permits net amount, after the
exclusion of taxes, to be earned Of 8
per cent on the capital invested. these
taxes have always been and always
VIII be passed on to the shipper anu