The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-17
SALES TAX CONDEMNED

IN spite Of its theoretical weaknesses and its
fundamental contradiction of all principles
OF the New Deal" the sales tax is being
adopted widely by our states. It NAV be that
a page out of its history will be of service
to discredit this nefarious type of taxation
before violent and disastrous opposition de-
velops
The sales tax is no new invention of the
vested interests in the United States. It's his
tory goes back nearly 1000 years. The Ro-
man Emperor. Augustus, decreed a sales tax
in 30 B. C. 1t amounted to per cent on all
articles, movable goods. and fixtures sold either
in the market or by auction
Passing down into the Middle Ages. the
sales tax was employed widely by the medieval
city-states in raising needed revenue.
In early modern times number of national
states experimental with it. Philip the Fair
OF France attempted to introduce the sales
tax in 1898 and 1914. but popular opposition
was SO great that he was forced to abandon
1t. While it lasted. it virtually paralyzed the
famous Champagne Fairs, the foremost mar
ket Of France.
The sales tax was experimental with spo-
radically in France during the next 800 years,
but never for any length of time
Spain introduced the sales tax in 1912 and
was the only state to keep it as permanent
policy 1t lasted until 1919. The effort To
introduce it into the Spanish Netherlands by
the Duke of Alva failed and constituted one
major cause of the revolt which cost Spain
the Netherlands. England f1irted with it dur
ing the Napoleonic wars. and a number of
states in our country tried their hand at it
right after the Civil war.
In most cases the sales tax has been a
somewhat frantic expedient adopted during
crisis when there was desperate need for
additional revenue. Only in Spain and cer
tain of the medieval towns has it ever been
permanent and normal taxation policy.
Augustus needed money TO reorganize the
empire; the French kings required an indie
pendent income TO enable them to fight feud-
alsm; Spain was warning against the Moors:
england was struggling against the heavy ex-
pense Of the Napoleonic wars and in our own
country, after 1865, we had to meet the heavy
drains of the Civil war period
In all cases there has been violent oupos;-
ton to the sales tax. It was felt-and quite
correctly-that the ultimate burden fell upon
the mass of consumers who were least able to
pay taxes. In addition. its administration was
often corrupt, inefficient, and negotiable.
Even in Spain. where it lasted longest. GER
tain cities had 10 be freed from its exactions.
Moreover. economic historians have often held
that the Spanish sales tax, or alcabala was a
leading cause of the economic decline of
SPAIN Its disastrous result to Spain in losing
the Spanish Netherlands already has been
pointed out.
The main light which historic experiences
with the sales tax throw upon its character
ana application may be summarized about as
ioilows; The sales tax is invariably highly
unpopular; it is a temporary expedient, due
mainly to the opposition it provokes: it harms
business. and, hence. soon aligns even power
ful business interests along with the populace
In opposition to it: it is very difficult TO ad-
minister; certain items which would produce
the greatest revenue have to be exempted from
its application; heavy penalties must be i'm
posed II extensive tair-dodging is TO- be