The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-15
RETAIL GROUPS
THROW ATTACK
AT SALES TAX
Fourteen Points Opposing
Proposal Are Sent to
Merchants.

Fourteen points OF opposition to
the / per cent general retail sales
tax, proposed by the Indiana tax
survey committee, have been raised
by w. E. Balch, manager of the In
diana Retail Dry Goods Association,
and circulated to merchants
throughout the state.
AS result, mass meetings of
merchants are being held in cities
and towns throughout Indiana and
concerted opposition Of all mer-
chants is expected to thwart any
attempt at passage Of such a tax by
the 1881 legislature, Balch said to-
day.
The fourteen points were sent
broadcast from the association Of
fees, Dol Illinois building.
Boost to Living Costs
The contentious are:
l. A general retail sales tax is
troublesome and expensive to adj
minister.
2. It can not be passed on to the
customer, except in a few cases.
8. It is retrogressive in effect and
will bear more heavily ON that class
of citizens who can least afford to
pay high tax.
4. It will increase the cost Of liv-
ing to the consumer. as the retail
selling price necessarily will include
the tax wherever possible, which in
the final analysis will be paid by
the customer.
5. 1t puts the retailer u The in
convenience and annoyance Of be-
coming tax collector for the state.
6. Because of the involved record
keeping and additional accounting,
the cost of doing business will be
increased, not counting the tax.
Would Deter Industry
7. 1t encourages the consumer to
purchase from mail order houses
located outside the state, the sales
of which are not subject to tax.
8. 1t serves as a deterrent factor
in keeping industries out of the
state.
9. It is a greater hardship on
those of limited income because a
large percentage of such incomes
must necessarily be expended in re-
tail channels than is spent by
those in the large income classes.
TO-. It differentiates between COM
n1odities and service. Professional
men are really in business just the
same as the merchant, only the
wares he sells are not actually
commodities, they are services and,
therefore, exempt. The lawyer, doc
tor, public accountant, architect
and many others go untaxed.
An Unfair Burden
II. It is not a tax based on abil-
ity to pay. 1t is effective in times
Of depression as well as in periods
of prosperity. It is based on sales
regardless of profit or loss.
II. Once a sales tax enacted
there is nothing to prevent succeed
ing state legislatures from increas-
ing the rate of taxation when they
are confronted with the problem of
raising additional state funds.
Is. 1t taxes luxuries on the same
basis as necessities, placing upon
the latter commodities an unfair
proportion of the burden.
II. In thousands of instnace it
will be impractical to pass the tax
on to the consumer, thus making it
necessary for the retailer to pay the
tax out of his own pocket.
Class Legislation
Ba1ch also points out that the tax
is based on volume and not on profit
and that a merchant whose bust
ness is operated at a loss is taxed to
the same extent as one operating
at profit end able to pay.
1t is distinctly class legislation, he
contends, citing the fact that a
merchant doing 100000 annually on
a net profit of S per cent will be
required to pay 20 per cent, or one
fifth Of his profit, in retail sales tax.
Experience in other states, mostly
in the south, are set out and in
each instance it is pointed out that
the result has been bad for the re-
failing business, Balch asserts.