Nogales international., 1933-01-07
Plan To Aid The States
With Federal Sales Tax


With Federal Sales Tax
NoTE-The following
American business, who
resides at Pensacola, Fla, to the solution in
present financial not only
collecting funds out the national
m but states plan with which ad valorem and other
abandoned with
collecting
President Hoover submitting his budget Congress
advocates Ia per manufacturers excise sales
all products excepting food.
federal sales seems to be equitable form of
taxation that spreads the cost of
the entire nation It the best form of painless extraction
relating taxation that devised The great danger
the states place additional sales taxes the
commodities taxed by the federal government that the
damage is done.
Mississippi adopted per cent sales tax and with the
proposed federal tax of IA cent will make total
sales Of A. Ia per cent the products Such
tax beyond all reason Pyranding of where the
troubles lie and it should be avoided state sales tax does
not belong statute books of any state 1t is danger
to the states business particularly when there
uniformity with sales taxes Of other states.
President Hoover states that IA cent sales tax
would yield ESQ he is advised approximately 900
per year In studying government statistics it is believed
that such figure underestmated and that the yield will
be considerably
SHOULD BE NO EXCEPTIONS
According to government statistics the value of man.
ufactured products in 1929 tax at
per cent would have yielded 584 4427 although
admitted that the amount and value of manufactured
articles produced today considerably less than in 1929
These figures include products which Mr. Hoover ad
vocates excepting. There good for
cepting food products which the president classes
necessity, than excepting pair of crutches wooden
leg both of which certainly necessities When excep
tonS are made arguments begin.
There question the government must balance
its budget by cutting expenses and then finding ad
tona to keep its financial house in order In do
ing SO must also consider the situation with regard to
state finances and that will be brought about by
double taxation.
The federal government has the machinery in the In
terna Revenue Department for proper collection Of
ufacurers sales tax per cent sales tax all
featured products valued the source would yield
than the amount Mr. Hoover desires The should be
passed to the states equitable basis in order
to the states their taxation problems President
elect Roosevelt made the statement months ago that
federal taxation should be considered with state and local
taxation in mind In passing the to the states the
distribution could be made in proportion to what each
states total manufactured products bear to the whole
the distributed the basis of population of each
state the whole further it could be distributed
combination basis of both. The example accompanying
map shows the distribution with relation to the states
Of Florida and New York the three bases outlined.
DISTRIBUTION OF THE SALES TAXES
In 1929 the total value manufactured products in
the United States amount to $7O434 443 figured at
per cent would yield S408, 268. If IS per Of
this amount returned to the states would
distribution of O56 states If the federal
government retained 25 per cent it would give it $780,
174317 or about the amount Mr. Hoover desires Admit
ting however that the value of manufactured products
today than in 1929 and that 25 cent of cent
would not yield the 55O00OOO required the surplus
er this should be returned to the states
OF some equitable basis AS business improves the
returned to the states would be considerably increased
thereby eliminating part all of the ad valorum tax
re3l estate and other taxation within the states.
The map illustrates the distribution the basis of