Milford chronicle., 1957-07-05
HIDDEN TAXES

HIDDEN TAXES
Everybody talks about taxes. And in do
ing so, practically everybody talks about di-
rect. visible taxes. such as those on income
and property That's natural enough, for we
can actually see and feel the inroads those
taxes make. They come out of pocket, or are
withheld from our pay checks, or are Spe-
Gifted part of mortgage installments
But the tax problem and the tax burden
don't end with these taxes-not by long
shot. Hidden or Indirect taxes which enter
in the cost Of everything, are huge item
Of expense to the American people. As
matter of fact, at many income levels they
are a much larger item than direct taxes.
BEN Price, an Associated Press Newsfea-
ture writer, has come up with an interesting
account of what is involved. AS examples,
he takes cheap commodity and an expensive
one-a loaf of bread and an automobile.
Actually, he says, Nobody has ever man
aged to count the taxes included in the final
price of either" It's an impossible job"
=. for in the case of bread alone you would
have to trace back to the taxes on the ma
chimes that made the machines that made
the machines that planted and harvested the
tax-supported wheat, grown on tax-paid
land by an income tax-paying farmer"
The same problem arises in the case of
the car However, there are certain taxes
that can be accurately totaled up. Mr. Price
takes a car carrying q Michigan price of
$4,000. The fgurable tax is $55983, of which
S488.S1 is hidden so far as the purchaser is
concerned. Included are estimated taxes on
materials and parts, estimated income and
other taxes paid by the manufacturer, SINH
lar taxes paid by the dealer, and so on. If
the car is bought at a distant point instead of
Michigan, the hidden transportation tax adds
further to the cost.
Going back to bread Mr.. Price quotes the
Tax Foundation as counting Isl identifable
oh o1o 4O he
sumer. An authoritative estimate holds that
taxes take about ST for every $5 spent on
food. SearcherS have run down 116 taxes
on a mans suit, 600 on house and $50 on
a woman's hat.
Dickson ]. Preston of the Scripps-How-
ard staff also has produced an interesting
piece on hidden taxes. He says that about
i 20 per cent of all you spend is absorbed by
taxes, and in the case of many items the
proportion is much higher-nearly nine
tenths of the price of bottle of whiskey, for
instance. And he quotes another Tax Foun-
dation report, concerning a man earning
$4,000 year. This man pays total fed
eral, state and local tax bill of 81 1893. The
visible part of that is only 1887. The in
visible part is S1,006.
The moral is found in Bem Prices last
paragraph: "The man who wrote that song
about the best things in life being free had
better have another look. He might change
his tune"
SUPREME COURTS POWERS
The United States Supreme Court recent
ly warned all branches of government that
they must be more faithful to the COnstitu-
tion and indicated that it would defend the
Constitution by limiting the other branches
of Government
This is a significant assertion from the
Court, especially in view of the fact that the
other branches of Government are often
wondering these days how the powers of
the Supreme Court are going to be limited.
The high court has been pretty busy in re-
cent months freeing those convicted OF con-
tempt of Congress, reversing decisions which
weeded Communists out of official jobs, and
seeking to implement forceful civil rights
and integration programs.
These decision have aroused question
in the minds of many prominent citizens con-
cerning the powers of the Supreme Court.
Congress, which could curb those powers, is
considering doing so. Many of the states are
genuinely alarmed at the trend,
On the other hand the Supreme Court
seems to be looking at Congress with view
to curbing the powers of Congress. The Su-
preme Court is critical of Congressional in
vestigating committees, and is limiting that
it will set limit on the powers of the other
branches of Government. The trouble with
this ambitious governmental philosophy is
that Congress is composed of the elected rep
resentatives of the people, whereas the men,
bers of the Supreme Court are merely ap-
pointees and most of them are merely po-
litical appointeeS.
Never in the memory of the writer has
there been a Supreme Court which was COM
posed of men so little qualified for the task
before them, and we suspect that-before too
many. years are over Congress will be limit
incrf ba Of tbo 1Irf bot.