The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-02-28

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Foreign Representatives
SMALL SPENCER. BREWER
: uncorporated)
CHICAGO NEW YORK BOSTON
Mississippi's Experience
Application Of . general sales tau
70 . state has been made In but one
important instance, that Of the state
Of Mississippi. There it has been II
effect only about ten months. As q
method Of taxation the use Of sales
tax d not, new. For decades there
has been some form Of q sales tax
but this nation has not applied the
principle generally. When used it has
been on . very few items and never
- = replacement or general tax.
TOR this reason then, the sales tax
field Is pretty much an uncharted
go. Mississippi's experiment has at
tracted great interest throughout the
nation and many economists have
been studying its operation very
closely.
TO meet the general demand for In
formation, the School Of Commerce
and Business Administration of the
University Of Mississippi has just Is
sued . bulletin on ''Mississippi's Gen.
eral Sales Tax-How It Works."
It = the purpose OF the survey, as
defined In the foreword, to determine
whether Mississippi made a wise
choice In selling this medium to raise
much needed revenue. That state in
1882 was in dire need and the situa-
ton called for drastic remedies. This
year Of Our Lord 1888 finds many
states In the same category as Mis-
sissippt.
The survey covers eight months Of
the laws operation. There Is q store
Of valuable information upon the OPP
Grafton Of the law contained in the
survey. Ten general conclusions are
given by the university economists:
!. The tax Is exceeding estimates
- . revenue producer.
:. Merchants interviewed state that
there = not an excessive amount OF
evasion Of the tax.
3. The tax Is economically admin
istered. Cost of collection for the
eight month period was 38 per cent,
exactly the cost Of the income tax
which has been in operation for nine
years. Advocates OF the sales tax
point with pride to the low collection
cost established the first year. After
the original set-up, 1t Is believed that
the sales tax will be administered on
lower cost basis than 3.8. The COL
lection cost Of the ad valorem prop
erty tax Is placed at 5 per cent.
I. The Sales Tax has proved itself
possible Of administration.
5. Considering that the Sales Tax
Il new, 1t is not an unpopular tax with
the masses. A substantial majority
Of merchants and manufacturers ap-
prove. Spread Of the tax and small
sire Of payments appeal.
8. In the main merchants shift the
tax.
Z. There Is little loss Of business
II the state due to the tax.
.. The incidence Of the tax Is pri-
marty on the consumer.
.. Failure to shift the tax Is due
Dither to the lack Of cooperation
among merchants or to small sales
u certain types Of merchandise.
10. The Sales Tax. judged by it,
efficiency as . revenue producer, has
justified itself at least Is an emer.
gency measure.
Mississippi has population Of D.
100000 and It = interesting to note
just what sales tax the consumers Of
that state paid during the months Of
Nay, June. July. August. September.
October and November. The esti.
mated returns were $l,l37 500: the &C.
tual returns were more than $4,000.
900. Mississippi. like North Dakota,
= more than % per cent rural. 80
thst the survey Is Of particular In
terest 70 this state which has now UNI
DIR oonsideration sales tax legislation.
Food and general merchandise take
the heunt Of the llissiasipp Gales tar.
Encourages Tax Evasion
North Dakota'S legislature, like