Milford chronicle., 1949-04-01
Who'd Pay the BiII7

ill?
Here's what would happen: On
Iuly /. of this year. the employer
would take from each employees
oay envelope l1R per cent of his
oay. The employer would add to
hat another IL per cent as his
part.
As an illustration. let US presume
The employee is paid $50 week.
and is employed in a sewing mach
inc plant. Let's say the normal
price of the machine he is produc-
ing is $50 and he is credited with
two machines each week.
When that rs cents is taken from )
his pay envelope he would object
and demand a full $50 as weekly
take home" pay. and. to prevent
a strike. he would get the raise and
the employer would pay both the
and the employees
payroll tax. amounting to $l.5O
a week, on the production Of
two machines. or rs cents per ma
chine.
THAT TAX, being part of the
construction cost of those machines,
would be added to the selling price
to the wholesaler, 1t would mean
IS cents added to the manufacture
er's price of each machine. making
it SCOTS per machine to the whole
saler. That is initiation.
The wholesaler has em-
plOyees, too. He, too, would
take 11s per cent from each
employees pay envelope. That
employee, too, would demand
and get a 75-cent-a-week raise
that his "take hOme'' pay may
remain at $50 per week. The
employer also would add am
other ~ per cent TO that of the
employee as his share Of the
payroll tax. Thus, the whOlesaI-
er would add IS cents to his
cost of operation and add that
IS cents to the price Of a sew
ing machine that now sells at
S31.50. That is more initiation.
The retailer would have the same
experience as the manufacturer
and the wholesaler and would up
his price to the consumer in order
to offset his increased cost created
by that payroll tax. The sewing
machine which normally would be
sold to the consumer for $50 now
would sell for 1925. all of the
increase being taxes. The payroll
tax would be responsible for the
inflated price and the consumer
would be doing all the paying. The
consumer would be paying for
checks those employees would, in
time, receive from social security.
THOSE WHO receive social Sc
curity checks now, or will receive
them sometime in the future, loud
ly acclaim the Presidents proposal
to increase the payroll tax and to
increase the amount of those
monthly payment checks. They do
not think of the inevitable result
of such proposals on the dreaded
national inflation--or who is do
ing and will continue to do the
paying.
Il is a question of how much
of such taxing and paying the
nation can stand. Today, just
about One-third of each income
dollar received by each Of US Is
taken away by taxes. Much Of
1t, like the payroll taxes pro-
posed, is ''hidden'' and we do
not fully realize who pays them.
They constitute a major portion
Of what we call the high cost Of
living. They represent initiation,
those high prices for everything
we buy and about which we
are bitterly complaining.
Enactment of the Presidents pro
posals into law would mean more
and higher prices and more infla
ton.
THE ADDED COST, when ap
piled to but one item OF mer
chandise does not seem much, bu
the total is staggering and we con
sumers will pay all Of that vas
sum. AS an average, taxes--local
state and federal-are taking from
each average family Of five aroun
81, 500 year, or an average OF $50
for each individual. Some porto
of that is included in the price {
every thing we buy.
The proposed additional payro
J. tax would be added to what we ar
e now paying and we will pay it
r the same way. as part Of th
IS price of everything we buy. whetl
s. er it be sewing machine, an aut
III mobile, a refrigerator, suit
sr clothes, shoes, food or any nece
sity or luxury. Do we want to pay
The Los Angeles Times found
Of new way to illustrate what the e
ne pending of billions on the part
s. government means to the Americ;
ne people. Last year the producti'
in of all California mines. includil
On oil, amounted to value of 81 ,O9I
of 7O3, 600. The California budget t
or the next fiscal year totals $l,O6
ne 1877, ,939. California is consider
a one of the larger mineral pl
IT'S ducing states. Minerals constitu
de its natural resources. The cost
at state government, alone. is &C
Stunning those natural resources
Freeman. Joins LII