The midland journal. (Rising Sun, Md.) 1885-1947, 1939-11-17

substance to the complaint that this
tax is tremendous burden on any
one who hires workers. The pay
roll tax, according to the admins
traitors analysis, was the third larg-
est of single items Of taxation-only
the property tax and the income tax
brought in more money for the
spenders of federal, state or local
governments.
Property taxes, levies on every
thing you own, your house or farm
or horses or automobile, paid a to-
tai tribute of 81, 745, 100000 If you
are good at figures you will find that
sum to be 80 per cent-almost one
third-of all of the taxes paid by
the United States last year.
Income taxes ranked second in
the sums produced for government
al use. The income taxes laid by
federal, state and city governments
supplied So, 100000, and that is
% per cent of the revenue.
Another Group Includes
The Concealed LeUies
But there is another group Of
taxes-a long list Of items that in
clude most of the sneak-thief taxes,
unseen and concealed levies-that
really is bearing down. These gen.
eral and special sales taxes, federal
stamp levies, excise and license
taxes were responsible for slightly
more than one-fourth of all money
paid into treasures Of government.
This money came from tobacco,
liquor, gasoline, sales taxes of vari-
GUS kinds which you saw only by
close examination or could not dis
cover at all, licenses, etc. The
gasoline tax was the largest rev.
enue producer. Federal, state and
local governments obtained $751;
600, 900 because most of us burned
up gasoline through use of the motor
cars. Liquor revenue amounted to
$3.50, 100000. It is said by some
authorities that this type of tax has
about reached its peak. To increase
it more will mean that bootleggers
can begin to operate once more, be-
cause added taxes will send the
price of liquor to a point where boot
'1egging becomes profitable. Such is
not the case with the other taxes in
the group; you pay them and like it.
ALI in all, the administrators
analysis shows ten general group
ings of taxes throughout the nation,
and it is interesting to note that
each Of these ten major items is
used by more than one level of gov
eminent. That is to say, the fed
eral and state governments will be
found using income taxes; states
and counties and cities will be found
using some types of sales taxes,
along with similar tax by the
national government, and some of
the other taxes may be found en-
ployed as revenue producers by two
or all three of the levels of govern
ment.
Which brings us to a recent
speech made by John W. Hanes,
under-secretary of the treasury. Mr..
Hanes arrived at a conclusion that
only a general increase in business
would provide enough income for all
of the tax eaters. He suggested that
there were few, if any, untapped
sources of income, insofar as the
federal government is concerned.
And other students have talked
frankly about the similarity of tax
problems among the federal, state
and local governments.
Cut in Personal Exemptions
Would Add Only so Millions
The school of thought that has adj
vocated broadening the base of in
come taxes by the federal govern
ment, by reducing the personal ex-
emptions from $4,000 for married
couples and $1,000 for single per-
sons, was shown by Mr.. Hanes to
be somewhat ignorant of facts. He
pointed out that an exemption of