The Washington times., 1932-06-04
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creased income taxation will not mean increased
revenue to the Government.
Why? Because confiscatory income taxes will
merely drive capital into tax-exempt securities,
when it should 60 into productive industry.
How is this possible?
Because the Federal Government and the
various State and municipal governments have
issued thousands of millions of dollars of bonds
which are free from taxation; and if man puts
his money into these bonds the income cannot be
taxed while if he puts it into productive industry
of the kind that creates wealth and gives us all
employment, it can be taxed.
OBVIOUSLY then the higher the income taxes
~ are, the more money will 60 out of productive
industry, and the more will 60 into tax-exempt
securities.
The disadvantages of excessive income taxation
are, therefore, threefold:
First, it reduces buying and consequently in
jures business and industry;
Second it drives money out of investment in
constructive and productive industry into idle tax
exempt investment, and so decreases employment
and dminishes the creation of wealth;
Third it does not proportionately increase the
Governments income from taxation, because the
people find ways of evading unjust taxation, and
the Government has thoughtfuly provided way
by issuing tax-exempt securities.
The whole system of income taxation has de-
generated lnIO d racket, Ill WHICH CIe PeOP4c CAy
to cheat the Government and the Government
tries to rob the people.
T IS, moreover an un-American tax system,
l. which aggravates class distinctions, develops
class hatreds and will eventually divide our
homogeneous people into the two conflicting ex-
tremes of communism and fascism.
The sooner this impudent, intrusive, deSpotlc,
discriminatory and perhaps revolutionary tax is
repealed the better it will be for the honesty the
industry, the wealth and the welfare of our
country
Then say you finally: ..-.
''Well what about the manufacturers sales
tax which was recently submitted to the House
of Representatives by Speaker Garner and Act
ing Chairman Crisp of the Ways and Means
Committee, and was rejected by the insurgents
of the House, led by Mr.. LaGuardia, of New
York, and Mr.. Swing, of California?
Did not President Hoover appear personally
in the Senate to speak in Endorsement of this
kind of taxation?
"What kind of tax is that?"
MY FRIENDS it is small tax of two or three
Viper cent levied at the factory upon all manu-
factured articles except food and clothing 1t is
form of taxation which has been in successful
operation in Canada for a number of years.
This manufacturers sales tax is called in Can
ada, where they have had ample experience with
it, the "painless tax" because nobody ever knows
when he is paying it.
This tax is in Canada a tax Of four per cent
levied upon all manufactured articles at the SELL
ing source of their manufacture
You pay the tax in the sales price when you buy
the article, just as you pay the tariff tax when
you buy an imported article and you do not have
tax collector coming around at the end of the
year when your money is gone, compelling you to
pay by hook or by crook lot of taxes you did not
even know were due.
The tax collectors of the manufacturers sales
tax do not bother the purchaser at ALL They col
lect the tax from the manufacturer.
"But," say you, "can our manufacturers afford
to pay this small tax?'
given impression that night after
santa Claus IN Washngon they they would
representatives made It u ~ VIZ proodou+ rr+;. "a
Commissioners that "N oN VIZ w
Congress has no intention of day Monday make
legislation presen