The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-08

A S congressional committees start work on
L new tax bill amid such editorial bywords
as soak the thrifty" let's look at some Fed
eral taxes visible and invisible, in the family
budget Of John and Mary Jones.
The Joneses are much more fortunate than
the average American family. John has
steady white-collar job salary $500 year
The Joneses belong to the upper-crust 100000
who have incomes large enough to be taxable
Their Federal income tax is small, to be sure,
since by deducting the 10 per cent earned in
come credit $3.50, the $500 married-couple
exemption and the s4O0 additional exemption
for their one child-little Oscar-only s34o of
Johns INCOME remains to be taxed, at 4 per
cent. The Joneses pay Federal income tax of
$3.50
It is not much. but that $3.50 paid on
March Is is about the most painful outlay in
the whole year John and Mary see their hard
earned money slip through their fingers into
the yawning Golfers of the Federal govern
ment. They have a personal interest in insist
ing that their government spend that $3.50
prudently.
n
Il
H IN the Jones budget, let us itemize few
hidden Federal taxes, ignoring entirely, for
purposes of simplihcation state and local taxes.
The Jonses have small car. 1t cost about
$780, Every few years, they trade in their old
car and get new one. The cost of deprecia-
ton and replacement runs about s12O year.
The Federal tax on automobiles is per cent
So we'll average out the tax item at per
cent of s12O-s36O.
They drive the car about 10000 miles a year,
get IS miles to the gallon of gas, pay a Fed
eral tax of l cent on each of the 666 gall
lons-S666.
The car uses an average of one quart of
lubricating oil every 100 miles SO they buy
100 quarts, taxed at l cent a quart-S1.
The car wears out three tires year, so they
pay a tax Of 2H cents a pound on three 20
pound tires, and cents pound on three g.
pound inner tubes-S1T.
Mary is old-fashioned. She doesn't smoke.
Oscar is young and hasn't acquired the habit
yet John doesn't smoke pipe or cigars. He
doesn't chew natural leaf, nor dip snuff. Hence
he escapes a lot of Federal taxes. But John is
an average cigaret smoker. using a pack
day, 365 days year, taxed at cents pack
$3.50.
John uses at least 20 matches a day light
ing his cigarets. He should be glad he's
not a pipe smoker But at that John, with
his cigarets, and Mary with her cooking, strike
about 10000 matches a year, taxed at 2 cents
a thousand-24 cents.
The Joneses are temperate folk. Being of
the prohibition generation, they never learned
to drink wine, and therefore escape wine taxes.
On warm days, in spring and summer and fall,
John likes his cool bottle of beer-about 200
bottles year, tax IL cents bottle-s3.
When friends drop i'll for a sociable eve
ming, Mary and John mix up a few highballs.
A quart of whisky a month is enough for their
social needs. Tax so cents a quart-s6.
The Joneses generally patronize the neigh
borhood theater where the admission fee is
less than 90 cents. and therefore not taxable.
But about once a month John and Mary
splurge, go to a 5O-cent flrst-run movie at
downtown cinema house, paying 10 per cent
tax-S12O.
Twice a year, they celebrate by attending
legitimate play 50 a seat plus 10 per cent
tax. totaling for the four admissions-0S cents
TOHN is a sedentary creature. He doesn't
~ fish or hunt or play golf or tennis. Hence,
fortunately for his pocketbook, he doesn't buy
any taxable sporting goods. But he goes to
about five ball games and one prize fight in
a year, 81 each admission, tax 10 per cent-6O
cents.
Mary likes bridge. About packs of play