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TAXING A 1iOAP BUBBLE Suggestions for a Return to Sanity And Solvency and Lower Pricem Through A Change in Our Method of Federal Taxation To Our Correspondents. Gentlemen: Some revenue measure, one whic may materially change the present method of federal taxation, will, in al -roobability, be shortly under consid eration, by Congress. Shall this nev legisk tion be sound, simple and equit able, or will it perpetuate the faults complexities and mequalities of th< present law, passed to meet the ener. gency of war? The answer will de. pen(d to a large extent upon public opinion, so we invite you to considei some of the evils of the preseni method and some of the advantages as an illustration of a tax on sales. The excess profits tax may auto matically become a dead letter. I1 wias impose(l as an offset to govern. ment price fixing. The in(ividlual in. come surtaxes, however, as levie( against earned income, are in it dif ferent position and are likely to re main and to bring their unfortunate consequences unless their danger i pointed out and acceptable alterna tives suggester, an(l the taxpayers of all classes made to see that the pre sent tax, to the extent that it bears or earne(l incomes of in(iividuals of part nerships. is really a consumption tay andt a contributing cause of preseni high priceg We may criticize the existing method on the following counts: 1. It bases the bulk of the govern ment revenue on a thing as evanes cent as a soap bubble. In other words upon profits or income which with the first setback in the business affairs of the people will very largely disappeat for the time being. It keeps the com munity all the time from three to fif teen months in debt to the govern ment, with the government constant ly borrowing in anticipation of the collection of that debt. It does vot take the gift of prophecy to foresee a condition, perhaps not very remote, when indivi(lual and cor Pastime JL Reserved S . . .. .. . \ilC ? "1r E Adat c mmmm ~ wdE~t 1L porate profits will for a timo disao. pear, business bankruptices occur, ana the government find that it is impos sible to realize the taxes against which it has borrowed in the preced ing year because of the disappearance of the anticipated profits of each year on which the taxes were predicted. That, is the most serious fundamen tal error of the present system. 2. It- treats all but the most mod erate incomes as something to be heav ily taxed and so prevents the accumu !ation of savings whic hwould be use(d to further expansion of produc tive enterprises which by increased production, would tend to lower costs to consumers. Great Britain has already recogniz ed this peril and cut in half certain classes of income taxation. 3. It is needlessly complicate( and expensive to collect. Expensive alike to the government and to the taxpay er and withdraws from productive employmllent tenls of thor.sands of clerks and accountants at a cost of millions of dollars. 4. It encourages waste and extrav agance in business operation, leads to the paying of large salaries\ employ ment of unnecessary people and waste ful methods, all of which increase costs. The points we have just covered compel the attention of the student of taxation and 'the legislator. There is another consequence of these taxes, however, which interests everyone, whether taxpayer or not, once it is pointed out, and that is the effect.of the present method of taxation-heavy surtaxes upon earned income-on the cost of conunodities and as a main contributing cause to the present so called high cost of living. It has been generally recognized that currency an( credit inflation, les sened production, extravagant buying, etc., have had much to do with the pre sent high prices, and we would not belittle these factors, but an additional and primary cause has been the pre sent method of taxation. The present federal taxes have been levied, apparently, upon the theory that the strongest back should beai- the heaviest burden or, in other words, a progressively increasing in come be subject to a progressively in T heatre--Festi NE 16th and 11 cat Tickets Now on Salc at INI 11 *HU f T Tffr.jTTITITTT~iITTTT'ITT~~~~ IIL'TITT LUiffrTT creasing tax. This thbdrk1is jts apL peal: it seems on the surface to have a sort of elemental fairhes saboitt it, but when we recall the tendency of all. taxes to follow down and lodge finally in the price of articles and services and so be paid by the consumer, the theory referred to lose-: much of its alteuistic appeal. It also has its political appeal. Very few people understand the theories of taxation. The identity of the ulti mate prayer o fthe tax is camouflaged and a politician may go, before his constituents with the statement: "We have taxed the rich man while permit ting the rest of you to escape with lit tle or no tax." Pprhaps that is why we have a system of taxation. which is more socialistic than scientific. Let us connect up directly the pre sent system of taxation with the high cost of living and, in doing so, we will' first give an illustration, Suppose a business man, say, a manufacturer of some necessary article, has been ac customed to make a profit of a hund red thousand dollars a year; he sud denly finds that he is to be taxed thirty-five thousand dollars on that profit; and as he does not want to make any less net income and as he cannot escape paying the tax be strives to -secure a larger profit than before. in other words, to make a pro fit of $1.60 or more where he was mak ing $1.00, so that he may meet the accumulating surtaxes on the larger amount and stil at least secure his former profit. lie does this and passes the article with the price so loaded on to the wholesaler or jobber who, facing the same situation, meets it the same way, and the experience is. repeated whei the nrticle reaches the retailer, so that by the time the article reaches the retail counter it has been loaded three times to meet the taxes of thl' three classes of trad Irs. - This is not. very lovely, but it is hu man nature, an (if such a course has U not been followed by all it has, with out. doubt, been followed by many, [1nd in following that method of pas sing the tax along the loading is al: ways excessive or the tendency always is to add to the tax. Now, it may be argue(I that comn >al Week, 'th Box Ofice -le * - su A th: tit ilt ah ell .rteraei s h U.S c RIC 9icON e Mac herso rf (IRIRi'~mmm1EG IThe Bryan OUR A i"Good Merchandise. I. Really Mea I We have -today received a discou 1are passing it on to you. 20 p~er cent Off On' $50.00 Suits for I $60.00 Suits for I $75.00 Suits for I 1 All suits made of the best materia ship. Of conrse we guarantee a satis i produce. RTrade with us and we will save Agents for the famous F. B. Q. T:, 1 1 The Bryan TEMPORAR'Y LOCATION, SUMI W. ALFR' FOSTER SMITH W. P. TREAKLE ition should correct this, and if a collecting such v nufacturer competing with the one based upon somw our illustration should be accustom- tial than profits, to making but fifty thousand1( dol- shrink with a s a year he would not have to add they cannot shri muhfor. taxes andI could undjersell comparable w first man, but ait present compje- which will takke ion is practically absent and the InI Considering aller manufacturer finding that he however, we nm i obtain the price set by the bigithe pr-esent luxu nI does SO and secures that much01 direct percentagi litionl profit. In this manner, a of certain artic o iouflaged tax probably takes fro f the consner in consumer an amiount much great- tail counter. S than the actual total of the tax re- Iabol ished. The: ved by the grovernment,- and it takes been impnosed. upt si tsy.deof ohe edt m teia e rtvoucepeetmtow ehv ie min rae with upsvn and by wl anacue 'mne Ans for theam ocusto F. B. Qasse th inThne B auatryan thIomrilsrto.I hr re aTa foeMpe RAYo sLOCAION wolIelt h hlslr$0. worh o gods4:s$100Saxth ala on ftebilbig$0. ; hI h lslr w u lflo h mieaa mehod insecngto the retaiflerllcin uc igfhej ca ompting wiotho the obaill;onso tia isiftraon hole acusto, would ta rft tomaing budvance thaoma(0-srikwte sam yea he woxhuld no he tolum ey alo munshforchas rentl or nderseng,~ ra~l firslth m ation whic p iet roep-whcwiltk ione is patell bstt anthce I osdrn neite mnsfacerfaln the atnsuerovvrw u obt ay the tax.c senb the itheprsntn-t aee aoss nlecmeunthuit uch (l16 t)r'Ctg 'I tio a ii se.l in thi ax e, aof th e rti ri 'iulae tax olf aIbi futaesrmi- osueri tha thactuale tetmethodtof taxingablshd Tc es byl ten goeet abnrbd ttaogen mosd Fromtheconume jus assurly s hce pren agitnstatx cidaiec pncn ~O.lb a cons \ovtotkupa tax on sales asawag rsal eraatie o te pesnt eth~l wewehveerchan' ofigrte ta pnsvigadl doingfburies tha repec woleome tht t i Cslected m the 'mnel andeasil and heapl no r csomfi the prese t(~(, an tht itsl~ra~l outwit nerstndir removreeue llte any ohja Letitsexmin hw i woldwor tmercanl my the istane ofthe mnufatur h 'the presenI the frmerillusratin. Ifher ap ntherecinsan ie atax f on pe cel t.on ing a upxon sales eit woul sll o te woleale $1,.thle mrchnt'sa al amunt f th billbein $10.-ko oin bmetings< the holealet woual fllow the ictfr m thcets( atemtoli eln otertien 'o the Pubjet line athe tha to e addedo the hly pandetan conu W tae ret.~lr th siring tax wold .Crev a chr eie patti a neach paewoulagethatmyh nr at wes l adacerIa reap ir. Thmatensasfnci pofsialx meon the vol m i thtepsn hs which ctsand be i r ame ad a tax. en .' the inl of acted a tles ior ipo l i -i ether reasons 1CThe deb)ttmf back aaia. a cro inl hva the ta. n e t in - t i- i tia a ieon mightaeasly bean hdisptsud o lehn It iI t toxm'. saablfax n inthe Ither ~~I'5 'on in st id 'e bosnly hle ouitt re-wi I i te':s ta nt sde.is f a ontht an fao~a~a (oau n. that. noonet the wodo ang alv, 1 n~ op hinate r fthn t yo the ol i o o We ta i itol d ith > u pon thevq p ia a's c 1evje a. a iiCii I~t'ena ('01ethod, of fee t' a. wade~al' na reail 'Fintco:leeb l in the fa ,ka''5 11'a ((at 5 (1,1 I)iS inswold (a) A stad igi talte ma taci' las T Li cse4 pear :nt. uapot 'toa' miI ciial' i' ee ii iht $ I.1000. :t, or' $ ta'itadei asIli'.sals. ll mat aiaht. 'e, (or' a'' 's vh ch ii; h' te~d i v d isteal 0)l0.0(0 respctivl 'eth p'iim' p' s c''.'tt((l Sle o' (b)) A sltraig u ift t e saesol o.b pon all sales a '.(c) A liamile< 'Ph s mI hal aso orn enas ise .flic iently emodle Oth'l I'~a5015. 'I'e leh o' hck enter'tpr'ise, upon)l 's hattg.n ovt' th peole aal ot e r'('' a ei'rian an ait 'm igh eailybe dspoed f b!as itint,~ from in I a axpavalIeooathy. t.personaral service I a i vi ', si~:,lonaa' fr en lueto of a buts ~ s'''~ or aetoala and p Th e saiggest iot a aa ii aia t~e sa iesovtin he objction th; lii IIt I I fft'er ayx~ifth fl-tax;ing sales tho 'a" maittI 11 (lal')at' d a c oameas faom in v( ii a. t l ' 1 i le ' apo te ay bet rtha somewi'~ l teii' l viad'al or' the rov'ernment I a 'tion th at p I . tc Clothing Co I0TO : at Reasonable Prices" ns Something nt from our tailoring house and Wd are any Suit in the Line . . . -$40.00 . . . '$48.00 . . . $6000 Is, good patterns, and finest workman factory fit on every garment that we you money on every purchase. uloring. . . Clothing Co. NO. 111 NORTH MAIN STREET 'ER; S. C. ED BRYAN FRANK JOYE DAVE CUTTINO, Jr. tax; and the tax is justice (lemand. The amount tliing more substan- beyond which such surtaxes begin to for while sales will run, however, should be placed much 'hange in conditions higher than at present, eliminating nk to any extent the smaller incomes from investments ith the shrinkage which would be to a great extent those )lace in profits. of Widows, children, etc., and by so a tax upon stiles, (loing reduce the number of reporting t not confuse it with taxpayers and the cos ry tax wherein a ity of collection. is added to the cost s and collected from, that form at the re- of taxation suggested every taxpayer ach taxes should be of whatever class would know just should never have vhat his tax liability is. That it The tax on salesoul stop the tendency to load costs nowv contemplatingofatx on the sales as. re- etiny(oplcti aoks of any concern, Ta twudntrlyrdc h ot and the illustrationoflin nIhltobngcdton sihows this wvould be Ii~ oan~ oml percentage in billing W eiv hti vudmtral s or wholesalers and lse h oto con n olc item of expense intinadsmlfthfomue.A e~s, where already the 'ybrefomsulsuicfrth mbel items of expense txo aegvn h rs ae em by a certa in (Ie- frtemnh(rpro lfme Swhich is added to ls eun n lovne n irticle itself to cover ipefrbeerta th fom n of distribution at re- ]uepirt 9 ,sol n~e o ixury tax is a taxIniida. nes urchaise, wile I ould be a tax against (otne npg ie sales a nd, as shown, - as an item of expense and nceed not be col- Poesoa ad ,onsumer in the man it luxury tax. A pr'o-I g of this point should NO(.DJKN action which a retail ttonva.Lw ive had aga inst a tax from hiis ex perience beyonewhic iuchsurtaes bein t higher than mprss nA'l at peet limnain s nmn eethe smae noe fo netet whichtl wuouldlo beANto a . graC.en hs taxpayersn frm an h otandcmlx We blore t'moundr tethane whatta . gi hiIa iblt s hti 'liIC l)op( t o uld stop ) th tendenytoAd ot in ad ure uo Attoing and heluntolbrn cotionw. loi he pe ent ntecs facon n ole Sttaioowerb adimApliN the fomsued ttnmaltxo a xy nsls iig h rs ae for.0,i he cs th ot o ero eie) ~n 2,t0Oead ss, returns Nan aloas ; and it tax f I pe cent. les f o, t bree ohn the formta in ueiso mtx se ro o11,shudase o altnanh no e ana noetxdcaaino incomeiddrividuals. nes (i th fo~owr~gM ANNING, S. C. zen s mde fat mthat Is enand ig fromgein ryt me t a tigt-..Atrnya part eo pl torIi'(( lok ealn oiaxalt ions herebyG S C