The Bismarck Tribune Newspaper, February 28, 1933, Page 2

The Bismarck Tribune’ measures now proposed pass, the colony of North Dakotans holding their legal residences elsewhere will grow. Passing a tax will not always bring in revenue. The opposite sometimes| is the case and sources of steady in- come under more lenient tax laws are often dried up by the operation Of confiscatory laws passed to squeese ‘more dollars from the pockets of the tax-payer. Adoption of the three cent postage is a case in point. Postmaster Gen- eral Brown thought by upping the first class postage one.cent, an in- crease of $100,000,000 would roll in. Instead of increasing postal rev- 00} enues the department lost $100,000,- 000. More than five billion letters. it is estimated, were delivered effi- ciently by other means during 1932. There ts always in operation a law of diminishing returns when tax rates soar. People become resourceful in evading excessive taxes. Long suf- fering as they are as regards taxa- tion, the public is now in no mood for excessive tax rates, Tt is easy to estimate tax increases under these laws on paper, but in this | practice the results often are wholly For this reason then, the sales tax Meld is pretty much an uncharted ea, Mississippi’s experiment has at- tracted gfeat interest throughout the nation and many economists have been studying its operation very closely. ‘To meet the general demand for in- formation, the School of Commerce and Business Administration of the University of Mississippi has just is- sued @ bulletin on “Mississippi's Gen- eral Sales Tax—How It Works.” Tt is the purpose of the survey, as defined in the foreword, to determine whether Mississippi made a wise choice in seizing this medium to raise much needed revenue. That state in 1932 was in dire need and the situa- tion called for drastic remedies. This year of Our Lord 1933 finds many states in the same category as Mis- sisalppi. ‘The survey covers eight months of the law's operation. There is a store of valuable information upon the op- eration of the law contained in the gurvey. Ten general conclusions are given by the university economists: 1. The tax is exceeding estimates @6 & revenue producer. 3. Merchants interviewed state that there is not an excessive amount of evasion of the tax. 3. The tax is economically admin- istered. Cost of collection for the eight month period was 3.8 per cent, exactly the cost of the income tax ‘which has been in operation for nine years. Advocates of the sales tax Point with pride to the low collection cost established the first year. After the original set-up, it is believed that the sales tax will be administered on @ lower cost basis than 3.8. The col- Jection cost of the ad valorem prop- erty tax is placed at 5 per cent. 4. The Sales Tax has proved itself possible of administration. 5. Considering that the Sales Tax 4s new, it is not an unpopular tax with the masses. A substantial majority of merchants and manufacturers ap- Prove. Spread of the tax and small size of payments appeal. 6. In the main merchants shift the tax. 7. There is little loss of business in the state due to the tax. 8. The incidence of the tax is pri- marily on the consumer. 9 Pailure to shift the tax is due 10, The Sales Tax, judged by its efficiency as = revenue producer, has justified itself at least as an emer- gency measure. Mississippi has a population of 2,- bes He : pe uel Hal t f | ei different. By soaking the people whom it is believed can pay increased taxes, the legislature will find to its sorrow that these same people have an easy way of avoiding payment of unreas- onable taxes, There is no surer way of wrecking a state than by piling taxes on a few industries which are able to survive under present eco- nomic conditions. They all bear a heavy portion of the tax bill as it is. Await The New Deal Not since the inaugural of Abra- ham Lincoln in 1861, has the country 80 eagerly waited the induction of a new president as is the case with Franklin D. Roosevelt, the thirty- second president. Many depressing foreign and do- mestic problems are impending; mil- Hons of jobless look with hope for relief; a debt and tax-ridden popu- lace wonder what the way out is to be, while @ man ecarcely turned 50 Prepares to take up the reins of na- tional government. It is @ solemn hour for the Re- public. Faith in many of our institu- tions has been shaken. But with all the trouble which seethes and bub- bles, it is characteristic of the Amer- ican people to move cautiously. There has been bitter sacrifice these last two years but it has been borne with great fortitude. ‘There must be more than prom- ises. Substantial steps are demanded to rebuild the foundations of na-|t tional prosperity. There are certain fundamental principles laid down by the fathers which cannot be violated. Fantastic panaceas will not bring or- oy der out of chaos. The government, both state and national, has become too complicated. There has been an excess of govern- checked. Private industry is floun- dering in its struggle against govern- ment competition. Departing from the maxims as laid down by the| {00 founders of the nation, the federal government has entered many busi- nesses a8 @ competitor of its citizens. In many indirect ways, the federal government is a disturbing element in the orderly dispatch of private business. Federal supervision of the railroads has been arbitrary and unreasonable. Administration of the federal in- come tax has been unfair and op- pressive. Hundreds of petty bureaus and commissions have created a bureau- cracy which has a paralyzing influ- ence on business generally, not to mention the terrific expense of such governmental experiments. There have been no well defined Policies at home or abroad. Govern- ment by blocs at Washington has Practically destroyed party rule and ‘Will the Democratic administration which is ushered in next Saturday change all this? It is @ large order for even the most fearless of leaders. Political expediency must be thrown to the winds if progress is to be sure and immediate. Yes, the nation awaits eagerly the dawn of the new deal. Editorial Comment Editorials printed below show the tren@ of thought by other editors. ia Paglia tare se ets with The Tribune's policies, It’s About Time (Dickey County Leader) 24-year-old lil all iH rE i gE “ae if say Hire itl feat ai fe | fis ie uf a : i ty 3 i 5 B£ Ta Boek rth | PERSONAL HEALTH SERVICE By William Brady, M. D. Signed letters pertaining to personal health and hygiene, not to disease diagnosis, or treatment, will be answered by Dr. Brady if a stamped, self-addressed envelope is enclosed. Letters should be brief and written in ink. No reply can be made to queries not conf to instruc- tions. Address Dr. William Brady, in care of this HYPOSULPHITE FOR DEAD spots .. .? (Mrs. R. H.) a FINGERS Answer—I know of no such Two years ago we quoted here the hypothesis advanced by a physician nm an amateur athlete attempts @ severe effort without having first “warmed up” by erate exercise, ther. weather. (Copyright, John F. Dille Co.) ein H EBs ae 15 Where does Adolf Hitler head the governmental cabinet? 16To,make & surgical. incision. 17 Cupidity. 18 Finale. 20 Wigwams. 21 Always. 22 Attempted. 24 Oceans. 25 Very small Japanese 40 Says. weight. 42 Shooting stars. 26 Stirs. 45 Pal. 48 Private carriage road. 49 Mongolian monk, $1 Hauls. 52To hoot. 84 Concord. 53 Type of hemp. 26 The cabinet in 54 Ages. i 65 Pen ‘name of Te it lit 38 Barometer ine. i FLAPPER, FANNY SAYS: Because of & 570!d Irish title. 10To harden. budget item? 58Scattered in 11 Angers. alt | Fal atl if i ‘i gf ¢ s 3 & & i 5 sR iy i! 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