The midland journal. (Rising Sun, Md.) 1885-1947, 1933-02-03

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SO located.
Another ! variation of the
sales tax is that of a general
sales tax. Several proposals
have been of a tax Of about LIZ
on all commodities sold in
Maryland, with food stuff ex-
empt. Such a tax, based on
the present retail turnover in
this state, would yield nearly
four million dollars annually,
even with foods exempt. This
revenue, divided fifty-fifty be-
tween the counties and Balti-
more City would permit the re-
duction of the county school
rate to approximately 40c and.
at the same time, provide a
portion of the much needed
revenue for Baltimore. There
has also been proposed a grad
uated general sales tax of diff
ferent rates, the highest to be
placed, of course, on the So
called luxuries. The objection
to a general sales tax in Mary
land is that it does not relieve
the farmer who must continue
to buy as much as speciality
tax on those things purchased
by the more wealthy. This is
not theory of soak the rich,"
but rather a reiteration Of the
fact that those who have the
most should contribute the
largest to the support of gov
eminent.
There has been some thought
along the lines of a sales tax
similar to that now in opera
ton in Mississippi. Here the
tax takes the form "of a tax on
certain businesses and profess
sions." While this tax, when
passed on to the consumer, is
in reality a sales tax, it has
some semblance of an income
tax, since it is imposed on law
yers, doctors, real estate oper-
ators as we'll as merchants and
manufacturers.
Such a tax has gained favor
in many states, and in Missis-
sippi it has been stated to be
the most successful tax yet inn
posed, from the standpoint Of
raising revenue. In that state
the tax is an average Of two
per cent and has been general
ly satisfactory to everybody.
No thinking tax student
claims the sales tax in any
form to be the most equitable
method of taxation. 1t does
not distribute the burden as
equitably as an income tax;
but. in an emergency such as
we are facing, it has the ability
to raise revenue and it would
seem that the Maryland situa-
ton does not call for a sales
tax high enough to be oppres-
sive. A very low tax, with
proper exemptions for food and
perhaps other commodities the
farmer buys, will raise suffice
lent revenue to lift big bur-
den from real estate and right
now that is what is wanted.
The big problem, it seems to
me, is, in addition to reducing
governmental expenses to the
bone, to redistribute the tax
burden so as to relieve proper
ty owners. Unfortunately, at
the same time, additional mon
ey for relief purposes in Balti-
more must be raised by the
state. Economizing is there
fore not enough. Money from
some source must be raised.
To reduce the county school
rate to .40c calls for additional
state aid. We cannot get
around that point. What meth
cd is the best?
AS stated above, from the
standpoint of equitable burden.
a state income tax should sup
plement our property tax.
While we are getting an in
come tax, however, it would
seem that some form of sales
tax is necessary and it be-
hooves us to see to it that the
tax finally adopted does rot de-
feat what we have all been
striving for-namely, to re-
linVn tho forr- ~