The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1940-07-19
Brackarts Warrington Digest
Taxes Raise Needed Revenue,
But Are Not Basically Sound
Only Part of Money Paid by Consumers Reaches Federal
Treasury as Dealers Are Forced to Collect
More Than Taxes Levied.

ment and for building real national
defense.
Let me show how this 10 per cent
added tax works out as q means Of
showing why l object to, and criti-
CHE, it. The 10 per cent was added
to the so-called nuisance taxes-tax
on admissions, cigarettes, gasoline
and thousand other articles. Take
cigarettes as an example. Popular
brands sold in many places at two
for quarter. The new price, gen.
orally. is two for q cents. But tho
actual increase in price caused by
the tax will be about one and
quarter cents. The dealers will get
an increase in the price.
While l say with candor that the
dealers get an increase, I am not
one who is going to criticize them
for 1t. / do not see how any indi-
vidual or firm could absorb that ad-
ditional tax-even though il is Just
one-eighth Of a cent-on every sale
that is made. He would 20 broke
In a few months. So, there is more
than the amount Of the tax collected
as a protection.
Business Not a. Sound
A. 1t Was in I9I7-I8
And that is the damnable feature
OF the excess profits tax. During
Its first application-l9l7, 1918 and
l9l9-every business that had to pay
an excess profits tax had to protect
It's own pocketbook. 1t could not
tell In April what It's business would
be in November, or any other
month. Its prices had to be scaled
upward to bring in enough profit
that 1t would be able to pay the
tax, the amount of which it could
not forecast.
These new taxes come at q time
when few businesses have any real
reserve for q rainy day. Ten years
OF depression has left them with no
tat. Yet, II we do not have the
new taxes, where will our govern
nent find itselff
In respect Of the lack of reserve.
the business Of the country In In
quite a different situation than Il
was in 1918 when the earlier excess
profits tax went on. Then, business
was functioning, making money
hand over fist, reaping war profits
from before the United States Joined
the allies against Germany. Now,
the tax goes on and business In fiat
on its back. There Is no use kid
ding ourselves about the condition.
In my opinion, any real economic
recovery Is now definitely off until
such type Of tax Is altered and
the levy applied SO that taxpayers
will know what tax they must pay
each year.
Tax Structure Of Nation
Needs Reorganization
The laying Of these new taxes
brings the people of the country
face to face with another fact. I
have been preaching against waste
and have been called anti-New Deal
because l have criticized the adj
ministration for piling I'D such q
huge debt--in excess of $40, 900, OO0..
600. But / believe q good many
folks now are going to realize that
Sen. Harry Byrd, the Virginia Dem
ocrat, was exactly right when he
urged that the whole tax structure
be gone over and reorRanized. He
wanted to see q sound tax struc-
ture. He surely was right when he
said there are contradictory and n
diculous tax levies In effect and thew
ought to be corrected.
The condition links directly with
my recollection Of old Noah. Noah
went out and spent his money with
no thought of the future. The pres
ent administration went out and bor-
rowed under one excuse or another
until the national debt Is the great
est in the nations history-witho,It
any thought of the future. They
built privies and ralSed leaves and
constructed unneeded buildings and
spent billions in every direction.
It strikes me that since the adj
ministration has emulated old Noah.
1t ought to wake up and take the
advice Of some sound thinkers such
as Senator Byrd. The taxes must
be paid-yes, in undreamed of
amounts-but the taxpayers in the
country have a right TO demand
some system in that taxation.
Some of these days an understand
ing Of the sour nature of these taxea
will permeate down to the last per
son who eats. The politicians have
been getting away with the grand
est deceit by using hidden taxee-
taxes you have paid as q part Of The
price OF your purchase-for years. I
think the end is not far of. / arnlv
believe that the tremendous taxes
we are going to have to pay because
we played like Noah, the farm hand
will teach q lot of folks n le.so~,