The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-12-12
Bracket System of Col
lection Makes Sure of
Hitting Consumer
By A. LANDY

afternoon. This will plumber at
least $60,000,000 out of the poorest
section of the population.
To help put across the sales tax,
the House made certain minor con-
cessions to the farmers, planning
in this way to secure rural support
and at the same time prevent the
development of united resistance Of
the city and country masses. With
this in view, the House agreed to
exempt not only sales made by
farmers on their own farms, as
originally provided for in the
Spaght bill, but also sales made by
farmers themselves in the cities. In
addition, the House agreed to an
amendment exempting seed, feed,
lime and fertilizer used in produc-
ton on the farm nor will farmers
pay taxes on food raised on their
own farms. It need hardly be said
that the por farmers in particular
are not exempt from payment of
sales taxes on articles of consump-
p4OAl AAOS bONEllb OlL LAlC ldL ia
Heaviest Burden On Poor
Governor Whites sales tax bill
provides for a bracket system Of tax
collection. The bracket system
means that the law sets the amount
Of tax to be levied on each purchase
within fixed limits. Thus, the bill,
which if passed will go into effect
on Jan. l, provides that the tax be
levied in the following brackets:
One cent-if the price of the article
is 40 cents or less. Two cents-if
the price is more than 40 cents, but
not more than 70 cents. Three
cents-if the price is more than 10
cents and not more than 81. There
is no tax on items less than 9 cents.
Where the amount of the purchase
is more than 81, the tax is cents
on each full dollar, with the one
two-three scale applying on all
additional fractions. Thus an ar
ticle costing $3.50 would have
Z cents tax. The tax is to be col
lected by the vendor as he makes
the sale, cancelling coupon as he
does SO. Vendors purchase pre-
paid stamps from the State gov
eminent.
At the same time, the sales tax
provides for the ruin of the small
merchant. For the small merchant
is least able to prevent loss Of
business by cutting the price by
the amount of the tax. AS the
Columbia University study of sales
taxes has shown, the small mer-
chants inevitably lose trade to the
large ones.
Representative George D. Harter
of Akron said: This bill proposes,
in the bracket plan, to tax at the
rate of 10 per cent those least able
to pay, and at 8 per cent those most
able to pay. 1t would tax the poor
man ten per cent on his sandwich
and the person who banquets on
caviar and other luxuries only 3
per cent. Representative Curtis, q
Democrat, admitted that "the chief
beneficiaries of our economic sys-
tenn are escaping taxes through a
sales tax; pass an income tax if you
want to raise money. Make 1t a
real income tax-not the attenuated
income tax Governor White favors.
Three years ago we passed law
slashing the valuations of manufac-
tured machinery in half and the
ten mill amendment reduced the
tax rate 5 mills. Why don't we tax
them now? Why do we let the big
manufacturers and steel companies
escape?"
Protects Bankers
While the sales tax bill originally
provided S12,200,000 for poor relief
for the first six months of 1885, the
Senate changed this, giving $6,o00,-
coo to old age pensions and S6,000,-
coo to poor relief. AT the same
time Governor White includes in
his tax program S6,O00,000 for in
terest and amortization charges to
be paid to the bankers on bonds he
proposes to float for relief purposes
in anticipation of the sales tax
revenues.
The extent of this robbery of the
relief funds by the bankers can be
seen from the Governors own ad-
mission in his message to the Legis-
lature. In his message he explains
that there is no money in sight
whatsoever for relief in 1885, be-
cause the selective sales taxes and
utility tax levied for poor relief, al
though not due to expire until 1887
and 1888, have already been eaten
up by the issuance of bonds to
finance 1884 requirements. In other
words, the taxes still due from these
levies for the next four years are
to go not to relief for which they
we're levied, but to the bankers in
payment Of interest and principal!
With taxes gobbled up 50 swiftly by
Governor Whites banker friends
not to speak of the miserably small
funds designated for reief-is it
any wonder that the Cuyahoga
County relief commissioners were
compelled to admit that they ex-
pected to get no help from the sales
tax!
Cuts Buying Power
The ridiculous contradiction Of
robbing the miserable consumption
fund of the masses to provide for
government requirements and relief
is indicated in the fact that the
1885 budget is based on the asSump-
ton that the masses will increase
their volume of purchases under
conditions that will make such
! purchases more difficult. The sales
tax itself is bound to reduce the
buying power of the masses, thereby
reducing the tax returns. More
over Governor Whites estimated