The Republican. [volume] (Oakland, Md.) 1877-current, 1929-03-14

SO on a stock of $500 with sales of
$4,000. The home merchant, there
fore, is compelled to pay about three
times as much tax as the chain cor
poration which is, therefore, a liza
i.bility rather than an asset to that
city, Franklin county and Missouri.
We have no doubt that the same
comparison of taxes paid by chains
and individual merchants applies in
practically all other states. The
average chain store does larger
business than the average retailer in
taxes. Is it not apparent on its face
that that is dead wrong and should
be corrected?7 1t can, if the mer-
chants of all classes will demand re-
lief from this unfair taxation system
of levying taxes on merchandise car
ried rather than on sales. The only
true yardstick whereby to measure
taxes is the amount of money taken
in. 1t is the only equitable way to do
it as then the chain and Independent
merchant would pay in proportion to
income That is the way the income
tax is figured as the man or corpora
ton with the least net income pays
the smallest tax.
Just the reverse is true in this
chain store business. In the instance
cited in Washington the two Kroger
stores take out of that community
about $4,000. All they leave in Mis-
souri, is about $4,000 for salaries,
rent and taxes. All the remainder
passes out of the State of Missouri
as not even the general buying is
done by the division warehouse locat-
ed in St. Louis. AS The Interstate
Grocer points out in the news col
umns in the case of home-owned groc-
ers not less than $4,000 of the $751;
900 would be retained in Washington
by the store owners based on 20 per
cent of total sales for salaries, ex-
penses, profits, etc. Then, too, there
would be a good proportion of the
other 100000 which would go to
wholesalers, to the payment of their
rent, salaries, ETC., as well as to manu-
facturers in Missouri.
In the case of Kroger, however,
just a little of the $4,000 taken out
of Washington goes to pay clerical
hire in the St. Louis division office and
what little that system may buy of
Missouri products. The fact that it
has more than 100 private brand pro-
ducts prove conclusively that Kroger
is after every penny it can take out
of Washington and Missouri. What
applies in this instance is very likely
true of all other cities of practically
all states. Here is concrete evidence
that the chain store is nothing but
leech upon the community, county,
and state, yet it is paying less taxes
than the local merchants who helped
build up the cities and states. What
a travesty on equal taxation that is!
The latter are paying the larger part
of the tax burden, while the interlop
ing chain stores are paying minor
part and destroying these cities at
the same time.
The Inter State Grocer appeals to
all of it's readers to see that it is
given the facts with reference to
what the chains of all kinds, in all
lines of business, are paying in their
communities compared to what these
local merchants are paying. We want
these facts in order to be in posi-
ton to show the injustice that is be-
ing perpetrated upon the citizens OF
the cities in favor Of the chain stores
the enemies of the cities. The chains
boiler from the housetops when
measure is introduced in legislatures
to place a special tax on them. Why,
then, should not the merchants of this
country complain against the tax
favoritism of the chain stores. This
is a fruitful field for attack upon the
chain stores and, with the right effort,
the rank injustice can be quickly cor
rected.
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