The midland journal. (Rising Sun, Md.) 1885-1947, 1934-01-26

BY Miles H. Fairbank. sec.-Treas.
Md. Farm Bureau Federation
PART TX
Basic Problems-Taxation, Tariffs,
Freight Rates
PART TX

by Jnl4 Llme, IL must De apparent
to everyone that among the big
problems facing the farmer Is the
control (and reduction, if pcssible)
of those fixed charges that contri-
butte SO much to his overhead costs.
| am referring especially to the fixed
charges of taxes, insurance, freight
rates, interest, etc.
Unquestionably, we do not need to
discuss the figures or quote statis-
tics to prove that these costs are
burdensome to farmers. They are
the object of considerable study by
farm organizations and farm leaders
in order to keep such expenses as
low as possible. A real case can be
presented from the facts to show
how necessary it is to attack these
costs if farming is to be made profit
able.
Here however, for the farmer,
are items which he finds it difficult
to control. He can, by efficient
management, keep down his cost of
production. The program of the
Extension Service and of the re-
search agencies is helping him do
that. II he is a good business man
or if he is member of properly
managed marketing association, he
may get more for his produce than
his neighbor, but taxes, freight,
etc., are fixed for him and as an in
dividual he can do little or nothing
about it. He can talk, as he often
does. He can protest, which may
help but-such improvement. in the
lowering of these costs IS are being
accomplished, are in large measure,
the result of organized effort.
If we want to study this agricul-
tural movement intelligent!y, we
should study what is being done to
lower these cost items. Not all of
what is being done is resulting from
direct action by farmers organiza
lions. Some of it, is just trend
upon which farmers may capitalize
| Cor on the other hand pay fcr) de-
pending on the direction in which
| the trend is heading.
Taxes are a nightmare to farmers
as we'll as all property, owners, or
anyone else who pays taxes, for that
| ,,,offar Vot fayno must ha maid
government must be supported and
| in spite of our intelligence, we have
not yet figured out how to expand
our national life without increasing
the cost of government.
Some day we may arrive at So
luton, but until then, better schools,
roads and all the things that go into
higher standard of living, CT st mon
ey that must be paid by taxpayers.
This does not mean that all the
rising cost of government is justifi-
ed. The total tax bill must be kept
in line by eternal vigilance on the
part of organized taxpayers and by
honest public officials. 1t is popu-
lar to say that all taxes must be re-
lduced, but the facts are that taxes
are where they are largely because
we demand certain things and be-
cause from the standpoint of our
political leaders, it is easier to get
votes by spending money than by
saving it..
The farmer really has two objec-
tives as to taxes; one to keep the
total budget as low as possible, the
other to redistribute the burden so
that real property will not carry the
heaviest load, as at present. 1t is
an old story that property carries
the heaviest burden, because in the
early days, when our tax structure
was formed, property was the only
tangible means of wealth. That is
mot true today. Taxes should be
paid in proportion to the service we
receive from society and this is not
always in proportion to the proper
| ty we own. To this end, t., most
significant development is the de-
cided tendency in Maryland towards
a state income tax, which, it is ar
gued, will relieve farmers of con-
siderable tax load by taking large
part of the burden from property
taxes.
From the standpoint of freight
rates, the most important develop
ment is. of course, the struggle be-
tween the railroads and the motor
industry. Trucks have brought to
farmers cheaper freight costs and
better service Farmers aud farms
ers' organizations will undoubtedly
fight to retain that advantage, but,
unless all sings fail, the influence
and the tendency is towards greater
| - hA Oh To-.