The people's voice., 1943-11-05
FROM EDITORIAL COLUMNS
A Few Thoughts On the Origin Of the
Sales Tax

the national debt increases due to the demands
the Administrators attempts get the to enact
taxing legislation which would make possible at least
SO per cent of the cost of the it fought To date
although taxes have been hked upwardth aim has not
been realized The administration has suggested number
of tax changes which would result in the collection of
1912 billion dollars But the house of representatives
committee and means rejected the reasurys recon-
mendatons and is currently writing a tax bill.
There exist distinct schools of thought about
This ncnes toward the view that taxes should be i'm
posed upon basis of ability to paw although in sane
nomc sysm for having taxes at ALL But
system far from and must deal with facts
they and not would like to have them
Unfortunately those individuals control great piles
private corporate wealth almost invariably aligned
against and all efforts to base the collection of taxes
the ability to pay They would much prefer to e George
do it, and because they most of the newspapers
radio outlets and such other of communication
exist their viewpoint most potent During the past few
in their efforts to protect their swollen wealth. such
parties have practically bought majority of the
bersp of the congresthrough support at the polls via
pagn funds support etcnt they able to almost
dictate the kind of tax bill that the writes And
of good bill having the little fellow carry
the load probably upon the assumption that there are
many of themw
Thus we see representatives Big Business
endeavorng to secure enactment of 10 per cent
They claim it would the necessary
and that is impossible to get by high income
corporation and inheritance taxes They also maintain
that higher corporation taxes would cut into postwar
The "kept press" is full of such arguments.
The profits of big corporations in the u be est
mated by the following quotation from the rather
tive Wall Street Journal The Treasury department has just
compiled estimates indicate that the corporate
will be sufficient offset
in rates but to leave substantial margin of
Aggregate net income of corporations subject to federal in
profits taxes will be $25 600 100000 this
Net income after federal taxes at current rates will
be $9 billion compared with $78 billion last $83 bill
lion 1941, S73 billion in 194O Sc billion in 1882 is
worth noting that is the record for such profit
year Even lush 1929 only resulted in 900 take
and the taxes imposed then nothing compared with those
in effect today.
But the corporations-n addition big profit ndi
catedhave also set aside reserves about 100000
OOO That is good idea and should be encouraged
nOts add
ona taxation What has become of the old American Legion
program to draft wealth as we'll manpoer when another
World War rolled around? That is here folks have
little patience with those folks who wang they cannot
make good profit under existing circumstances. would
they should be content to break particularly
they permitted to pile good reserve with which o
to work after the is 1t seems to that Presi
dent Rooseves effort to fix ceiling of S250OOafter taxes
individual incomes too modest When thousands of
American boys giving their lives whether voluntarily or
through seective rather bad for people
demand that they be permitted make much profit
they of the carnage
The Big Business point view is that of the National
Association of Manufacturers which
1000 members and it's bought and paid for
long ago. sending letters and literature to its
bers insisting the members ito sit down with representa-
tive and and discuss his and problems frankly
The desrabity OF getting ample publicity and resolutions
from organizations having connection with the NAM
also indicated.
AS result there has myriad of inspired resolu-
ton sent to the by all sorts of
ing for sales tax Most of the membership of such organ
idea what they asked vote upon
in enjoying social gatherings they their bless
ngs to sales tax proposition which cuts unfairly at their
economic structure 1t be that enactment of the
legislation would be just in that would such people for
their careessness but would hurt millions of others we'll
1t ought to be plain to that if 10 cent of the
of farmer laborer small businessman taken in
and his income hypothetical So 000 he pay
ing 5000 in such tax-which directly from his
standard of living for in these days $4,000
not going to keep and his family in anything ap
preaching luxury.
On the other hand such tax with income
If $25 900 million dollars not going to take great
lae than does on the little fellow and even if should
will not from his bread and butter. II
There has long been offered for the sales
the claim that it would raise lot of lot of
be raised by any tax but the sales tax perhaps
he most expensive tax to administer and in the long prob
bly would not raise anywhere much of its
rotagonists pretend For example commodities which might
taxable under the sales tax being considered worth
$50 billion at present ceiling prices food exempted
here would remain S35 billion 10 cent levy this
would yield $3@ billion if there exemptionsand
here always flock of exemptions So is doubtful if
than couple billion would be collected and the
hiring thousands of collectors and office workers to handle
job would be tremendous not considering the effect of
ang people the job away essential jobs