The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1936-10-07
SUBSIDIES AND TAXES


The American Builder, magazine pub
liShcd for the construction business IN THIS
country. directs attention to pressure which
is being brought to bear to have the ted
craI government substitute building con-
Struction. The plan is to have the govern
ment substitute the building of around halt
q million homes year over q period OF
several years. In its discussion OF the pro-
posal The American Builder says:
Another current demand is for subsidies from
government to aid cooperative societies of produc
crs and consumers. Nobody can reasonably object
to the formation and operation of cooperative
provided those who own and run them invest and
use their own money. But why should the govern
mcnt furnish them money? They do or would COM
pete with individuals and companies already en-
Gagged in producing wholcsaling or retailing. These
individuals and companies have invested their own
capital Why should they, well as the rest of
the public, he taxed to subSdizc competition with
them?
There can be no economic or moral iustifCa-
ton for such use Of the publics tax money. If CO.
operatives can conduct their business efficiently
as individuals and companies, they compel"
without government subsidies. II they cannot COM
pete without subsidies, IT is because they cannot
conduct their business as efficiently individuals
and companies. What argument be made for
subsidizing incFiciency to help it drive out eff
cheney?
MANY advocate govcrnmcnt-subSdzcd COMPETE
ton with the power industry, the railroads, the
home building industry and even the retail lumber
dealer upon the assumption that it will reduce rates
or prices.
Perhaps il will. But all government subsidies
do and must come from taxes. And the bigger and
better the subsidies the bigger and better the taxes
Total annual government expenditures are now
about 30 per cent of the total annual national in
come. Everybody is paying, or will pay, these cx-
pcnditurcs in taxes. And in the long run every
body will pay them about in proportion to his in
come. Most taxes are invisible because included in
rentals and prices Of commodities; but they al
ways there; and the greater government expcnd-
lures become the higher the invisible taxes includ
cd in prices paid by everybody.
"If mans income is $4,000 year he can be
reasonably sure that government is now costing
him about $4,000 year. And if his income is only
ST 900 year he can bc reasonably sure that gov
eminent is now costing him at least $500 year.
Government subsidization of competition with
business in which citizens have invested their own
savings, large or small is unfair and un-Amcrican.
And il INJURIES these citizens without bcncfting
those it is supposed To bcncft-bccauSe those sup
posed TO be- benefited finally have to pay their
share of the subsidies in increased invisible taxes
can taxes should be reduced, not increased. But
they will all have to be increased, not reduced I'M
less all government spending, including that for
subsidies is reduced"
The logic Of the foregoing paragraphs
will not fail to reach the understanding oil
honest, fair minded, right thinking Amerl-
cans, There is no place in this country for
fbc isms and radicalism which are shaking
foreign countries to their foundations ana
resulting in such horrible conditions as pre-
vail in Spain. Yet all such stun as Inc
American Builder refers to is chiefly based
-, un-American isms and schemes wmch
ore directly traccable to Socialism, Oom'
munism, or some other form OF ahenism'
As 70 cooperative societies OF produe'
ors and consumers, they are not ooJec'ioh
oble e ORGANIZED in the right way. IL SUD
sidized by the government, through TAX eN
emption, or contributions collected IRON
tho pubIic in the form of taxes, they ar'
bicbl " Objectionable. Co-Operatives go ihI'
business to profit their members. Ihey com
pete with the businesses owned by othe'
citizens. If allowed tax exemptions VI
other forms of government subsidies the'
become groups receiving special 1aVorS
and are placed in exactly the position DC
cupied by monopolies and other groups re
ceiving special government favors at tn
expense of the taxpayers. And what clas