Montana labor news., 1937-09-02
FACTS ABOUT Money!
HOUSES, FOOD pR|(E5|
AND WAGE INCOMES
Government Can Raise As Much by
Taxing AS By Borrowing

In 1884 Great Britain raised ST.
407, 610,0 900 by the income tax, and
we only 1919, 656,000.
In 1885 the total net income of the
480, 799 persons reporting net incomes
over $4,000 was SIS, 942, OF, 1000. They
paid in Federal income taxes and
surtaxes only $609, 1853, 900, and had
left an average of S11,009. Nearly
two-fifths of their income was from
ownership or control of property.
After the Al persons with net in
ONE over 100000 paid all Fed
eral income taxes, they still had al
average of 1888, 683.
About two-thirds of Federal tax
collections in 1885 were from taxes
on consumption, and only one-third
from personal and corporation in
come taxes, and taxes on xce
profits, estates and gifts. Agricul-
tural adjustment taxes were as much
as personal income taxes.
The Federal income tax paid by a
married American without depend
ents, on a $4,000 income is only 25.6
per cent of what a Britisher paysl
Britain does not have tax-exempt
bonds, and we could get at least
$500, 600, 900 a year by taxing inter
est on such bonds.
Government expenditures for edu-
cation, public works, relief, and pro-
lection, and payments to farmers, in
crease land values.
The Federal Government can re-
owe some of this value it creates,
by an excise tax on land values,
which would yield from $500, 900, 900
to $500, 000, 900. That would prevent
speculation in land and make it
cheaper to people who want to pro-
duce-as well as to government.
One-Third of the American People
Live in Sub-Standard Houses
Most of them can be housed de-
Gently only by government housing.
The American Federation of Labor
after a recent survey of the housing
situation, reported that we need 49,
10000 new homes by 1915.
The largest number of homes built
by private industry was $4,000 in
1928, and the average for 1920 to 1929
was $4,000 yearly. In 1885 only
about 300, 900 new homes were built
and not many more in 1886.
Through its power to condemn
land, and its power to make a lower
real estate tax rate on buildings than
on land values a condition of con-
structing houses, the Federal Gov
eminent can get land for housing at
a lower price, and can thereby lower
rents for all houses.
Seventy prominent economists and
professors of public finance recently
endorsed taxing buildings at a lower
rate than land values.
Taxation of land values is the key
to low rent housing.
Retail Prices of Sixty Foods In
creased Al Per Cent from 1888 to 1886
The Bureau of Agricultural Eco
Monies recently reported that of the
1891 paid by a typical workman's
family for fifty-eight important foods
in 1888, farmers received only $138,
or AZ per cent, while of 1852 paid
for these foods in 1913, farmers re-
ceived $118, or AZ per cent.
Only a government corporation
empowered to buy farm products,
process them, and sell them to ulti-
mate consumers, can reduce the
spread between prices farmers get
and consumers pay, for farm prod
ucts.
For the first nine months of 1886,
the net profits of IA large food prod
uct corporations were SCI, $4,000,
which was a return Of 14.7 per cent,
compared with SAT, 085, O00, a return
of ia per cent for the same period
during 1885. The increase was 30.7
per cent in 1886. During these two
periods the net profits of 5 large
baking corporations were SIG, 082, 900,
or 81 per cent, and $11,479, 900, or
SO per cent, an increase of 40 per
cent in 1886.
From the standpoint of CONNER
cial production nearly half the farm
ers of the nation are not needed" re-
ported the Land Planning Commit
tee of the National Resources Board
in 1885.
1t states that in the prosperous
year 1929, over a fourth of the farms
of the nation produced less than $500
worth of products each, and practi-
cally half of them less than 81, 1000
worth each. The 40 per cent of farms
producing less than $1,000 of farm
produce, contributed only about II
per cent of the nations commercial
production. Within a few years, if
farm prices encourage them, the
Committee states, the half of the
farms with large production could
meet all commercial demands for
farm products.
The Bankhead-Jones Farm Tenant
Corporation bill as introduced ap-
9 NANk|NG :