Evening star., 1933-07-09
WHEAT TAX SCORED
AS HEAVY BURDEN
FOR LABOR|NG MEN
Doubt Is Expressed, However,
That Farmers Will Take
Loss in Joining.
BY DIR, MAX WINKLER.
Special Dispatch to The Star.


= NEW YORK July 8.-Beginning at
midnight the United States Govern
ment will put into effect what is prob
ably the highest sales tax that has ever
been levied by any government on any
product. This tax is being placed on
the staff of life. the principal foodstuff
of the bulk of the American people.
The same Congress which SHE'D away
from a general sales tax-undoubtedly
one of the most equitable methods of
raising revenue that can be devised
passed the so-called agricultural adjust
ment act, which places heavy sales
taxes on number of the most impor-
tant necessities of life used by America S
laboring classes, in addition to that of
wheat -four.
This tax on wheat -four will amount
to S138 per barrel, and though it is
stated that it will only increase the
price of bread about one-half cent per
pound, the price of bread already has
advanced in many cities of the United
States ranging from / to cents a loaf
Despite the fact that the law specifies
Just how this processing tax is to be
computed, reports from Washington in
dicate that the arbitrary figure of 80
cents per bushel will be assessed any
way. regardless of the advance in the
market which has taken place since
notice of a processing tax was an
nounced
According to a compilation for Ma
tons Business. the basic price of wheat
on the farms in order that the farmers
NAV obtain parity is 1874 cents per
, bushel On June IS, the date the pro-
cessing tax of 30 cents per bushel is
reported to have been established, the
farmer may be assumed to have re-
ceived on the farm 584 cents. On June
IS, the Chicago September option closed
at 1884 cents, which was a trifle over
18 cents a bushel higher than the
farmer was receiving for wheat on his
farm. On June 81, Chicago September
| wheat closed at 98 cents. which would
| indicate a price to the farmer on the
/ farm of 80 cents. which is onlv cents
| from the parity value established by
the Department of Agriculture.
While it is admitted that Secretary
Wallace has been made practically die
tator in the food industry, it is difficult
to understand how he can use his pow
ers to compel a processing tax of 80
cents per bushel during the coming crop
year, when the actual spread between
! the price to the farmer on the farm
anu tne parity Value may De !ar less
! than the tax established.
! AS farmers cooperation is purely
voluntary, it is doubtful whether pres
ent prices will effect the necessary farm
! support At "a cents per bushel on
| the farm. farmer would make more
money by not accepting the domestic
, allotment benefit. For instance, if his
average crop were 1000 bushels on the
farm, the farmer would then receive
S940 If he had cut his total produc-
tion 20 per cent in order to enjoy the
domestic allotment benefit, he would
! then receive S152. On the basis of 80
cents per bushel on five-eighths of his
average crop. the farmer would receive
S1S7.50, or total of market price, plus
benefit, of $939.50
| Copyright. 1893. nv North American News
! paper Alliance, Inc)