Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-12-27
The General
Sales Tax" Is A
Barbarous System
BY JOHN A. SIMPSON,

tax system. l quote from DR.. Buehler,
Professor of Economics in the Univer-
sity of Vermont, in book written by
him and published about a year ago.
Doctor Buehler says on page three
of his book: Ancient Athens laid
various taxes on the sales of COM
modities in the markets, and on sales
of landed property. The taxation OF
specific commodities, like salt, was
common in Egypt, China, India, and
other ancient states. In Egypt, un-
der the Ptolemies, very unpopular
tax at the rate of five per cent was
placed on the sale of all commodities.
When the Romans conquered Egypt,
they established a general sales tax
that apparently amounted to as much
as ten per cent.
perhaps the best known sales tax
of antiquity was that collected by
Rome in the days of Augustus. He
Laid tax of one per cent on all ar
ticles, movable goods, or fixtures, sold
in the markets or by auction, even
at Rome and in the Italian peninsula.
In II A. D Tiberius reduced the tax
levy to one half of one per cent to
allay popular discomfort, but during
the first centuries of the Roman en-
pire a general sales tax of one per
cent was common. The Romans also
carried the general sales tax into
France and Spain, where sales taxa
ton continued after the Romans lost
control of Western Europe.
The general sales tax employed by
Spain after the beginning of the four
teenth century, has received the at
tention of students of taxation for
many years. Starting in the early
middle ages in the communes, it was
introduced as a national tax in 1912.
1t included virtually all articles and
was levied at the rate of one per cent,
then at five per cent, and later at ten
per cent, on all sales. s The general
sales tax led to not a little difficulty,
but it was continued by the absolute
monarchs who were at their wits ends
to find some method of balancing the
budget. The Spanish economists of
the time do not tire of calling atten-
ton to the enormities and the unfor-
tunate economic consequences of the
general sales tax.
Sales Tax Expresses Spaniards.
The masses were oppressed by the
general sales tax for centuries and
commerce and industry were seriously
hindered by its excessive eXactions.
Adam Smith condemned the general
sales tax as an important element In
the economic decay of Spain. The
hateful tax was finally discontinued
in the early nineteenth century.
During the days of the Inquisition
Spain attempted, but without success,
ia carry the general sales tax into the
Netherlands. The Dutch arose in re-
bellion against the undertaking"
On page four we find, France also
ventured early into the field of general
sales taxation. In 1914 Phillip la Bel
initiated tax of six Denier per livre
on the sale of provisions. In 1856,
when the English armies had invaded
France, the rate of the general sales
tax was doubled and the middle class
were Infatuated. In 1465 Louis XI
established a five per cent tax on sales
of articles at wholesale. He was la
ter frustrated in his attempt to col
lect tax upon all sales of commodi-
ties. A general sales tax was also in
trOduced by Sully in 1897, but was re-
voked in 1902 because of popular re-
LSistance.
Various later attempts to again in
troduce the general sales tax in
France failed because of popular re-
fuSal to acquiesce. The French eX-
perience with the general sales tax
therefore warrants us in making the
statement that as an effective method
of raising public revenue it proved to
be a failure. In fact when the French
revolution broke out the first thing
the convention did was to abolish
sales taxes"
Unsuccessful attempts were made
by the ultra-rich during and after the
Civil war to pass a general sales tax
through Congress.
10 Ease wealthy.
Doctor Buehler says on page IA of
his book in discussing recent efforts
to fasten a general sales tax On the
people Of this country: 1T was the
fundamental objective of the move
ment for a general sales tax to tighten
the tax burden of the weather. clas-
SEES of society. Probably those who
would gain the most from the enact
ment of a general sales law were the
sponsors of the idea, the business in
terests of the nation. Instead of the
income tax and the profits taxes,
which were largely paid by a few
wealthy individuals, a general sales
tax would be adopted which would be
passed on largely to the millions of
the nations consumers"
On page 231 of this book, Doctor
Buehler gives a table showing that
seventy-six million people in this
country are on standard of living
below the comfort level, and these adj
vocates of a general sales tax would
tax these seventy-six million unfor-
tunate citizens on the purchases of
their bare necessities in order tina the
rich mans income tax might be less.
They are willing to lower the already
II