Evening star., 1932-03-16

Completion of the draft of the Fed
eral revenue bill has been followed by
wide discussion of the new provision
Of a manufacturers excise tax Of az
per cent to be applied at the point OF
final fabrication. This is recognized as
| burden on the taxpayers, but in the
| debate on the subject its acceptance as
| a necessity is shown in the bulk Of the
| comment. Further broadening Of the
tax base Is effected by lowering Of in
come tax exemptions, and an advance
in normal and surtax rates. There Is a
public minority suggestion that greater
income taxes might have peen provided
but this is considered an uncertain
source of revenue.
The Birmingham Age Herald believes
that Everything in its power appears
to have been done by the committee to
devise a scheme which would work, and
work with the least possible hardship
! on the taxpayers. II it brings the re-
turns expected, and If, with economies
which can be put into operation, 1t
serves to get rid Of the deficit, it Is q
good job"
THE sales tax is forced by an eco
nomic necessity that could not be re-
sisted" says the Boston Transcript,
land as it is expected to raise more
than half of the revenue Of more than
billion dollars the country must con-
tribute, this levy must be accepted as
having a place in the bill from which
it cannot be dislodged.'
'If there must be tax increase for
the purpose of rebudgetizing govern
mental units, the sales tax presents the
faireSt method" thinks the Fort Worth
Star Telegram, while recognizing that
much of the objection to taxation
abides in the obvious fact that taxation
is not now and never has been Just" "
The Walla Walla Bulletin remarks: "A
trial of the manuf- .turerS' sales tax
may result, if the exL er1ence Is satisfac-
tory, in its substitution for the income
tax as Federal levy"
In explaining the basis involved, the
Wall Street Journal offers the analysis:
The Ways and Means Committee, in
its report, assumes that the manufac-
turers' price on many Of the common
commodities is 70 per cent Of the retail
price. A family with an income of $2,-
600 probably spends 81 900 for food
stuffs, untaxed, and 81 1000 for taxed
articles. This does not mean, If the
tax Is all passed on, that the family
pays tax of 2A per cent on its 81 900
expenditure, but tax of az per cent
on 10 per cent of $1,000, or on $700,
which is $l5.75 for the year. With
chances at least fifty-fifty that one-half
of the tax will have been absorbed be-
fore the retail price IS set, the tax
burden becomes $7.SS on the family IN
come of $4,000"
The bill recognizes" according to
the Hartford Times, "the emergency
character of this part of the tax plan
by providing that it shall be operative
only until July, 1894. 1t may be well
for the consumer to keep his eye on
that proviSo lest Federal administrators
and legislators try to make the tempo
rary measure q permanent one"
"It promises to have at least one
beneficial effect" In the opinion Of the
Harrisburg Telegraph. "It will cause
general, though slight, advance in
prices, and price increases are widely
regarded as one Of the essentials for an
upward turn of the market. Besides, 1t
should lead to large purchases in ad-
vance Of the imposition of the tax, and
this should provide a considerable
stimulus to manufacturers and whole
salers, with a wider range Of buying
power for patrons of retail stores"
mo one can deny" remarks the
Morgantown Dominion News, that the
step taken Is one that can be justified
only on the score Of necessity. In this
connection 1t seems that justification
can be found, both because Of the recog-
nized emergency and becauSe no one
has been able to suggest q substitute
for the manufacturers tax that win