Evening star., 1926-10-24

be paid an additional tax fee OF al
most 500, ,000, 900. And this Is for but
one year, 1924: and this kind OF tax
against the manufacturers Of building
materials Is collected each year there
after. 1t is apparent that this is an
unscientific tax system that is a most
serious menace to manufacturers IN
that line alone.
Nor Is this the whole story. Each
of these manufacturers, in his own
home town, where he carries on his
business and actually makes his
wares, is subjected to an additional
tax against his manufactures. The
more he manufactures the more taxes
he pays; his factory is taxed-the
better is it the higher the tax; his
machinery is taxed, he pays a fran
chise tax, an income tax, various ana
sundry license taxes-and all OF these
taxes are added into the price that is
paid by the house builder and buyer.
Thus all building operations are MADE
more expensive-and with the natural
tendency of such higher costs to re-
duce the amount of such products
that are sold. Thus, in his turn, the
manufacturer has a lessened market
and makes less manufactures, there
by employing less labor; and labor,
thus earning less wages. has less
money to spend in the general mar
ket Of all manufactures.
Question One of Business.
"This whole question is one of sim
pie good business. We can help busl-
ness by making taxes least BURDEN
some to business.
II have already quoted Roger BaD-
son. Let me quote him again. He
said in a recent article on taxes:
Taxes are paid from surplus. not
from gross income Then he goes on
to say: Directly or indirectly the cost
of government absorbs q very large
portion of surplus of the individual,
and thereby vitality affects recre-
ational and educational life, invest
ment and building up of capital ac-
count and attainment of financial IN
dependence Where public expendi-
ture constitutes q first lien on surplus
account, it increases by perhaps so
per cent or 100 per cent the period
during which the thrifty man must
work to build up surplus account
which will support him in his old age
THAT is why I say I want to see
taxes not merely reduced but n1teo
off the backs of industry and Thrift.
But" 1 asked, "how are we to
do this?"
Must Interest Public.
MANY remedies have been sug-
gested. It Is a big problem and re-
quires study. 1 think we must have
the public mind directed to the un-
scientific, messy and woolly-witted
methods of taxation under which we
exist. We must get people to think
not merely about high taxes but about
burdensome and Gripping methods
of taxation. Then the States and
cities can provide bodies for studying
the subject and finding intelligent
ways out.
For instance, the taxing of land
values is one method proposed. I
know many persons will cry Single
taxi at this. OF course think we
are now too intelligent a people to be
frightened by names. But I am not
speaking of the single tax. Such an
intelligent and eminent authority on
political economy as Prof. Irving
Fisher Is not a singletaxer, but he
believes in taxing land values rather
than improvements and industry.
THE great aim Is to take the
burden off of effort, off of produc-
ton. off of manufacture and industry;
to distribute the burdens Of taxation
according to some sensible plan so
that they will be at least felt by the
communities. Our tax systems in
every State need thorough overhaul
ing in the interest of the business
man, the farmer and the wage Garner.
We have drifted too long in a mud
die Of unscientific taxation. We must
eXtricate ourselves from the snarl
And I am speaking as a business
man."