The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-01-27

sales TAX arouScs 50 much opposition
Arguments in its favor have bee
given as follows:
It produces substantial revenue.
The cost OF collection is low.
It Is easy to administer.
It has Z broad base. permitting
all citizens to contribute in some
measure to the support OF the
government. The income tax. on
the other hand. touches only a
very small group of the whole
body Of citizens.
It Is q painless tax, since it Is
not imposed directly upon the
consumer but instead is levied on
manufacturers sales. and If It is
passed on 1t does not appear in
the retail price as a separate
item.
As a tax on buying power,
which is always present to a GER
tain degree, 1t Is good revenue
producer in bad times as, we'll as
good times.
1t is paid when the taxpayer
has money to spend.
As the rich buy more than the
poor, and pay more for what
they buy. they will contribute
more tax.
The rate is low and uniform,
and most necessities are exempt.
Pyramiding is eliminated, SO
that the tax is paid but once on
the sale OF any given article.
The tax will not affect BUSH
ness any more adversely than
some other form of taxation.
Those hostile to the tax declar
that 1t is essentially levy on con
sumption and to large extent it
shifted to the consumer, thus in
creasing the cost OF living. OF cours
this argument applies, to a great ex
tent, to all forms OF taxation. Fe,
persons are exempt from the process
Of shifting taxation. 1t goes on I'm
der any system.
Other arguments urged against tn
sales tax can be summarized as fol
lows.
When borne by the seller the
tax discriminates unfairly in IA
vor of business with small total
sales and high profits and against
those with large sales and small
profits. and is, in effect, tax
on gross income under such cir
cumstances.
When borne by the retailer. 1t
imposes the sole burden on him.
thus discriminating in favor Of
manufacturers and wholesalers.
When shifted to the consumer,
1t is a gross violation OF the prin-
ciple Of ability to pay.
AS between taxpayers with
equal incomes, the sales tax falls
most heavily on those with the
greater number Of dependents.
Although the rich man con-
sunleS more than the poor man,
and buys more expensive goods,
the larger tax that he pays is not
in proportion to his wealth.
The sales tax Is an income tax
IN reverse, since it is levied on
outgo instead Of income.
The tax being an element OF
wholesale cost. the profit OF the
retailer includes a profit on the
tax. Thus the tax takes more
dollars out Of the pockets OF the
consumer than it puts into the
hands OF the government.
Being an easy revenue produe-
er. 1t is likely to be conducive to
governmental extravaganza.
Administration OF the tax is
not as simple as is supposed, es-
pecially where they are many ex-
emptions.
OF course sales taxes are not new
Most states have them. The gaso
line tax is an outstanding example
Practically all forms Of excise take
are sales taxes under another nam,
North Dakota taxes the sale of ciga
rettes and derives considerable reye
hue from that source. Other In
stances could be mentioned. Man
script schemes being advocated ar
nothing more than sales or turn love
taxes. In fact the allotment plan
sales or process tax passed on +
The consumer and related back I
he farmer, theoretically at least, t
raise the price Of his goods to nea
he level OF other products or to pro
luce parity with other forms OF in
iustry. Shorn OF all sham and YER
'iage, the plan is nothing more tina,
| sales tax.