The daily worker., 1933-01-18
DANGER OF SALES
TAX IS GROWING
Masses Must Defeat
Higher Living Cost

WAOftINtION, ~. u, jail. IT.
Under the continual pressure of the
big bankers the question of balanc-
ing the budget now overshadows all
other issues with the exception OF
foreign relations and the wars in the
Far East and South America.
The sales tax as the main means
of raising revenue is brought more
openly before Congress by both DEM
ocrats and Republican Party leaders.
A Two-Party Effort.
The speech of Secretary of the
Treasury Ogden Mills in which he
came out definitely for sales tax
affecting practically all articles Of
mass consumption has the approval
of the incoming Roosevelt admin
istration and such influential lead
ers as william McAdoo, backed by
Hearst, and secretary of the treasury
under the Wilson regime. Governor
Horner of Illinois, Democrat, came
out for the sales tax in his inaugural
address Jan. 9.
1t is estimated that the one cent
per gallon tax ON gasoline and other
proposed sales taxes will bring in
something like s500,000,oo0 This
would mean approximately a levy Of
500 per year on each wage Garner in
the United States.
The Hearst Campaign.
The most active supporters of the
Roosevelt slate like the New York
Times and the Hearst newspaper
chain have all come out for sales
tax. The Herald Tribune, Republi-
can Wall Street organ, stated on Dec
that "a sales tax should be en-
acted"
The mounting treasury deficit
which the sales tax is supposed to
overcome is one of the principal evil
dences of the acute form the crisis
has developed. The deficit for 1881
was, according to treasury figures,
s902 ,700,0 ,000 For 1882 the deficit was
$2,835 100000 For 1888 it is esti-
mated that the excess of expendi-
lures over receipts will be $l,150, ,000,-
900.
Where the Money Goes.
The extent to which federal gov
ernment finances is dominated by
the Wall Street banks is shown by
the treasury reports that out of every
$l00 received in taxes and other
forms of revenue $500 goes to pay
interest; S14.15 additional goes to the
reduction of the government debt.
S43.15 goes for war purposes-pen-
sions and other payments for past
wars, and appropriations for the
army and navy-preparations for fu-
ture wars.
The proposed sales tax, therefore,
is simply method of guaranteeing
the payments Of interest and princi-
pal to Wall Street concerns, and for
war purposes, at the expense of the
masses of the working population.
A Concrete Example.
For example: The price of five
cent cake of soap would be raised at
least one cent by the sales tax. This
is an increase of 20 per cent to the
buyers although the sales tax calls
for a two and quarter per cent
tax to be paid by the manufacturer.
The wholesalers and retailers will all
add certain percentages to prices in
order to avoid expense to themselves.
No Food Exemption.
The supposed exemption of food
stuffs from the sales tax is only bait
to fool the masses. The tax If put
in force will be reflected in a rise in
prices of all commodities as well as
rent, electric light, etc.
The first effort to put over the
sales tax failed because of mass re-
sentiment. The present attempt is
being organized better by the joint
action of Democrat and Republican
leaders. Energetic protest Of work
ers and working class organizations
can defeat the sales tax proposal and
its main purpose of putting still more
of the burden Of the crisis on work.
ers, farmers and the whole toiling
section of the American poulation.
Prompt action is necessary. The
forces behind the sales tax are the
most powerful group of capitalists in
the United States.