Milford chronicle., 1949-10-28
DanqeEous Tax SYstem

0aA9cAouS AoA oyoAem
VHYHEN CON REss Ac-
W QUIESCED in the demand Of
John L. Lewis for a tax Of 20 cents
ton on all coal mined to be used
as a welfare fund for union coal
miners. it permitted the establish
ment Of q new and dangerous tax
system in this country.
That 2O-cens-a-ton on al coal
mined was not tax paid by em-
ployers, the coal mine owners. II
was but another Of the many hid
den taxes the consumers pay. That
20 cents was added to the price of
each ton Of coal sold. II was a part
Of the cost Of coal production.
That tax on coal secured by
Lewis set . pattern for other
labor union leaders in other
industries. Now comes a de-
mand on steel and automobiles.
Should the union leaders sue
eeed in their demands In these
cases every other industry en-
plOying union labor win be met
by similar demands. In every
case Il means q tax passed on
70 the consumer Of commOdi-
ties.
The cost Of such taxes will be.
must be, passed along to the con-
sumer as a part Of the price of the
! produced commodity in exactly the
same way that all other taxes,
local, state, federal Cincluding So
cial security, of every producing
concern is included as a portion
of the price the consumer pays for
what he buys.
In the case Of the tax levied by
the coal miners the cost to the con-
sumers Of coal is around so million
dollars a year. With steel at the
proposed tax of 10 cents an hour
for each man-hour worked, the
cost to the consumers of steel and
steel products would amount to
about 200 million dollars a year.
Such figures are but illustrative Of
what vast sums such taxes can
amount to, all Of which the con-
sumers-you and Twill pay.
Such taxes can multiply In
the course Of production Of raw
materials and the transform
ing Of such materials into con-
sumer-used commodities. When
the producer Of iron ore is
forced to pay such a tax he
includes IL in the price Of ore
to the steel producer. The steel
min adds TO that the tax it
pays. The auto manufacturer
adds his tax 70 the one paid
by the ore producer and the
steel mill. Eventually Il
reaches the consumer as a big
part of the price he must pay
for the commodity he buys. Tt
amounts TO not 10 cents per
man-hOur only, but much near
, er 40 cents, covered by the
several landings Of a basic
. commodity on which congress
NGAMMttCW G0Cu bGA W UG
levied by the union leaders.
? The levying of such taxes by the
t unions should be outlawed by con-
5 gress. 1t is inequitable. II can, and
4 will, wreck our entire economic
system. It means exorbitant prices
for the things we need. It means
s breaking industry, and bankruptcy
I for the nation.
v The reason that Is not done is
2 that congress is afraid Of the labor
Y union leaders who concocted such
= a scheme. In the case Of steel the
e so-called fact-finding board ap-
: pointed by the president did not
e consider the possible, the probable,
{ the certain place in the tax pic
e ture Of the American consumer or
the final result to the American
worker. It means establishing q
principle that viii break American
industry If indusry was to do the
paying, that would close the mines
and plants on which we are de-
pendent for jobs and the commodi-
ties we need.
Because the consumer win do
| the paying Il viii mean higher,
much higher, prices for every
] thing the consumer buys, In
cluding food, clothing, housing
and all essentials as weIl as
luxuries, when the system has
/. spread, as Il will, throughout
n All industry. The inaction Of
y congress will not buy the labor
!. vote when labor looks in vain
v for q Job.
IS It would be better for all Of ut
e that industry close its plants rath
+ er than attempt to meet such ex
tortionate tax demands.
i Justus F. Craemer, president o.
/ the National Association Of Utilit,
l. Commissioners, is authority for the
h statement that each Of our teIe
D phones represent, on an average
= an annual tax Of S23.31. That Il
l. one Of the thousands Of hiddel
ie taxes the consumer pays. In eacl
months bill there is close to 50 tax
Just what will an around-the
world iaunt on the part Of a senatl
IS committee accomplish for tn
T. American people other than 4
IN spend more Of the taxpayer