Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-11-19
Cruz
OUR GREATEST
SAYS THOMPSON

New York, Nov. 1S-At confer-
ence on taxation held here today I'M
der the auspices of the National
Founders Association w. J. Thomp-
son of South China, Me-, chairman
of the executive committee of the
National Grange. spoke on the sub
ject: Taxation: The Great American
Crop
That the average family spends
$500 annually in taxes; that the per
capita cost of government exceeds
country; that every addition or eX-
tension of the governments activi-
ties increases that cost, were among
the facts, which he stressed.
Few people realize" he said, that
there is collected and spent in this
country yearly approximately $4,000
per inhabitant, man, woman and
child, for the purpose Of running the
various units Of government, federal,
state and local. This means that the
average family in this country pays
$4,000 annually in Taxes.
The total cost of government for
the year 1924, including money bor-
rowed for state and municipal pur-
poses was approximately ten billion
dollars, while the farm value of the
chief crops of the United States for
the year 1924 was placed by the De-
partment of Agriculture at nine and
one half billion dollars, and these es-
Inmates included grain. cotton, to-
bacco and fruit exported. This shows
that the greatest crop raised in this
country is taxes. In fact, more is
paid in taxes i'll this country each
year than the value OF all the farm
crops combined.
Surprising as it may seem, the
per- pita cost of government. in
this country today exceeds the per
CAPITA cost of all the country's food.
Taking fifteen of the leading cities Of
the country, the United States Cen
sus Bureau shows an average per
capita of government in 1922 to be
iS11S.00. while the United States De-
partment of Agriculture sshows that
in the same cities the average cost of
food per capita in 1928 to be only
$500.
1t is difficult to make the average
person understand that practically all
taxes become consumption taxes and
enter indirectly into the cost of living,
: lust as a tax collected of a railroad
, must enter into the cost of freight
and travel and again into the final
cost of the article transported; or as
. the taxes levied upon building must
De pdIu ny Inc leHaill III iiSi ee'SS0
rental.
As laws increase, the machinery
increases for carrying out the pravis-
. . ions of the laws and the costs\cor-
: respondingly increase. II these ever
increasing costs were met by direct
. taxes, so that the average person
could know and feel what it Is cost
ing him, he would seriously object to
! increased laws and governmental
functions, but these new costs are
usually met by indirect taxes such as
: duties, fees. and licenses or by great
! ly increased taxes on income or cor
porate businesses. thus making the
average citizen think that some one
!. else pays the tax.
II the average family should pay
, for one year, in the form of direct
: tax, all the taxes it is now paying, 1T
; would take from the pay envelope
, every Saturday night, $500 for Fed
eral, State and Local taxes before
purchasing the necessary comforts
for the family. They would then at
, least take some interest in how this
, money is spent, or would try to cut
down the expense.
While It is true that most taxes are
} passed to the consumer who finally
: pays them in increased costs of liv-
| ing, the farmer being large consum-
/ err, must pay his part of this in
} creased cost, but differing from many
Others, he is unable to pass 1t along.
HE Is also a large purchaser of ma
,chinery, fertilizer and other goods
entering into the operation Of his
farm, as well as a large payer of
freight. the costs of which have
largely increased owing among other
things to increased taxes,
Taxes are additional costs to any
business and if they cannot be passed
to the consumer. then sooner or later
the business must cease. II new
tax is levied on a railroad it must
be collected in higher rates, or if in
making such higher rates. the COM
peting truck takes the freight, then
1.-The railroad must cease to operates
This is the case with many railroads
today.
/ 1t Is. however. much more difficult
for some industries than for others to
pass the tax on to the consumer, and
it is also a much slower process. This
is especially true of the farmer whe
cannot readily change his business
and who has little to say about fixing
the price of his product.
Since at least 800 of the state and
local taxes are collected from a gem
eral property tax, this cost of gov
eminent rests especially heavy upon
the farmer. whose property is largely
in real estate or in goods that can
readily be seen. In some purely
farming localities In this country the
direct tax rate upon the true value Of
the property, runs above 10.
The President Congress and all
the farmers organizations of the
country for the past few years have
been trying to find some way to pass
this increase of farm operation on to
the general consumer, but it is not an
easy task. To illustrate what mean
by passing on this increased burden
of taxes and other costs that the far
mer is bearing. (and the tax increase
is no small itern). I will say that the
price of wheat before the war was
laround one dollar per bushel, and
while 1t advanced during the war
with all"other prices. it soon dropped
back to approximately the pre-war
price. where it has remained. In the
meantime, taxes, wages paid, and
many other operating costs have
practically doubled. Many laws have
been proposed, many conferences
held. commissions have been ap-
pointed and all are trying to find
some way to relieve the so-called
farm handicap of increased costs