The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-03-28
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Defeat for Sales Tax

j Defeat for Sales Tax
Public opposition 10 the sales tai
was too strong and this form Of tai
has been decisively defeated. Accept
.ancc Of the sales tax by the Uni
ted States as means of raising take:
to meet the present emergency woulo
be a departure. True forms of sales
taxes are familiar to the American
people, but the nature Of the bill de-
featcd was 50 revolutionary as to bt
a distinct innovation.
Now will come agitation to reduce
public expenditures, eliminate useless
bureaus and governmental frills
That is going to be an arduous task
In the department of agriculture
there are departments spending mil
lions upon useless scientific surveys
In times of plenty, millions were CIV
en- certain bureaus and great po-
litical machine of henchmen has
been created. It will take almost
superhuman power to knock the pins
from under such an organization
But right there is the answer to low
er taxes. The powers at Washington
got off on the wrong foot when they
sought to initiate taxes and continue
government appropriations pretty
much at the old levels.
The fact remains, however, that the
budget must be balanced and the pill
Of taxation, sugar-coated or other
wise, must be taken. 1t remains to be
seen down whose throat it will be
pushed by the lawmakers at Wash
ington.
Leaders are so far apart on the is
sue of governmental economies, it is
doubtful that useless appropriations
can be eliminated or expenses cur
tailed enough to be of benefit in bal
ancing this budget. Many depart
ments Of government have made
their commitments and incurred
liabilities which they must meet.
In some quarters the demand was
to legalize 4 per cent beer and raise
revenue from sales tax on the bev-
eragc. A senate subcommittee has
reported favorably the Bingham bill
which legalizeS such action. This bill
has been approved by the senate
leaders on that committee on the
general theory that beer is being
manufactured now and generally
consumed and the federal govern
snent is getting no revenue.
It Is hardly likely that the present
congress will take this way OF bring
ing revenue into the exchequer. The
drys reply mo Beer To date they
have been strong enough to prevent
any letting down Of the Volsteadian
bars. as witness their defeat of beer
tax Friday.
No one can tell what revenue a
beer tax would create, but as a first
aid to depleted treasury and par
tial relief to the terrible unemploy-
ment problem no one can logically
deny it would be at least partially
effective.
But even such considerations are
not sufficient to break down the dry
resistance.
One economist has figured out that
one earned dollar out of every five
goes to the support of government
and that persons on the public pay
roll. with their dependents. number
twenty million. Until people can be
schooled to the fact that tax reduc-
ton means the elimination Of many
governmental activities, there will be
no tax reduction. In the past peo-
pie have voted for every bond issue,
they have heralded every "frill' or
crank idea for spending more tax
money as necessities and now the
piper must be paid or the govern
mental luxuries discarded.
At this writing congress has start.
ed to work upon the battered meas
ure and viii impose heavy excise
taxes on many Of the so-called lux.
uries. Stamp taxes and other nuts
ance lmpositions Of war times will bel
reimposed upon the public. The
whole thing. In essence, will come
back to the original proposition and
tho same pockethook win pay, but
the politicians will be served by hav-
Ing the "touch" camouflaged. I'M
The end the dear people pay as
usual. The tax-eating departments
viii continue their orgy Of spending
As one writer has put it: The federal
government tells "the farmer how
q farm, the merchant how to run
! grocery store. the exporter how to|
pack his goods for shipment. We are
Inatructed Is to the mating habits