The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-08-03
T1RIFFs AND PROCESSING TAXES

This from the editorial columns OF the
Charlotte Observer:
The farmer mas never been sold on the idea Oh
a protective tariff.
Az a matter of fact, the common attitude he
takes is that the tariff is for the benefit only OF
industrialists and decidedly to the Disadvantage
of agriculture. s.hehl -" r.
The threatened ripping away from agriculture
of the benefits of the processing taxes has moved
the Texas Agricultural Association To go to, the
courts in reprsal in effort to test the eonsti.
nationality of the protective tariff which some
industries are being allowed ,. Sc. ..H.f.
Il will be an interesting question for decision,
The Washington agricultural leaders have re-
peatedly pinned their faith as to the inherent
validity of the AAA upon the theory that us
processing tax, the heart of it, was the equIya-
lent in, agriculture to the protective tarlH tor
industry. IKE .ns s4a.rn.
And it would seem, by such reasoning, there.
fore, that, granted the correctness Of its prem
Use, the court which would hold the AAA to be
invalid would be found, also to rule the same
way the tariff. .--. e.. .,.
The Observers argument in the torego-
ing is certainly strained to the breaking
point in the concluding paragraphs. We
are told that the Washington planners re-
gard processing taxes as tariff levied
for the benefit of farmers and, therefore,
they hold that the processing tax ievles OF
the Agricultural Department will be held
constitutional; or, on the other side Of
controversy, tariff laws will be held to be
unconstitutional. "' -
Perhaps the Washington planners and
The Observer can see some fundamental
similarity between tariffs and processing
taxes, but. we confess that this is not ap-
parent to The Times-News. 49,.
A tariff levy is tax laid on foreign i'm
ports and the money thus collected belongs
to the federal government and is used III
defraying the legitimate expenses of the
government
A processing tax is collected by the gov
eminent, not for government expenses, but
to be turned over by the government to
certain classes of citizens as a bonus for
not producing commodities which they are
supposed to be engaged in producing. The
government does not collect processing
taxes to, be applied in paying the necessary
and legitimate expenses of government
but in collecting such taxes it forcibiy takes
money from one or several classes of eiti
zens to be given to other classes of citizens
Does the federal administration have
any constitutional authority to hold up one
citizen, take his cash, and make a gift Of
it to another citizen? rs go
Thus itdwill be seen there is a vast diff
ference in the fundamental principles ot
tariffs and processing taxes. Tariff is ta'
levied for legitimate government expenses
A processing tax is scheme for takins
money, through government manipuIatiof,
from one citizen and giving it to another
and that not for value received by the frs
citizen or the government.
The tariff system of collecting taxes TO
the federal government has been great.
abused through a long period of this coun
try's history, and tariffs have irnposel
heavy burdens on the tilIers of the son
whether they are cotton, corn or whea
farmers; but these facts do not justify a
attempt to put tariffs and processing take
in the same class. They are fundamental
as unlike as two government policies ca
be- i
Another point which the Charlotte Oh
server might clear up in its discussion .
tariffs and processing taxes is that Of SUI
plying information as to- The tariffs mo-
levied onthe Importation of farm produc