anaheim-gazette 1932-06-23

Sales Tax In Mississippi Is Working Well; Advantages of Plan Outlined Politicians Trying to Dodge Fact That Consumer Pays Any Tax Will Be Forced to Accede to Sales Plan In Future for United States, Belief of Those Studying How Plans Work By CALEB JOHNSON I think it is as certain as anything in the future can be that eventually the United States will adopt a general sales tax, as a means of raising national revenue. I am sure that will come about as soon as the majority of people understand exactly what is meant by a sales tax, and when they have had an opportunity to observe the operation of the sales tax in the state of Mississippi. Mississippi has gone boldly ahead and adopted a sales tax, which went into effect on the first day of May this year. After a month's experience everybody in Mississippi—at least everybody who can make his voice heard—seems to like the sales tax. That goes even for those who were most bitterly opposed to it. Mississippi's sale tax is expected to yield about $4,000,000 a year. The state was up against a treasury deficit of $12,000,000, inherited from former administrations which made appropriations in excess of tax revenues. Something had to be done. It was generally agreed that real estate could not stand any higher taxes. I don't know what intelligent member of the Mississippi legislature it was who first brought in the idea of a sales tax, but whoever he was, he ought to have a medal for getting a new idea through the heads of legislators. For, after all the main objection to the sales tax is that it is something new, and being new, members of congress and of legislatures are afraid of it for fear that in some way it might injure them politically to be for it. People, generally, are conservative. They distrust change. But they are not nearly as conservative as a good many politicians think they are. Intelligent Interest The theory of the sales tax is not so much that everybody pays it, as portionately less than those of high incomes. Old Adage Good The principal outcry against the sales tax everywhere has come from retail merchants who, in the absence of any exact knowledge of the subject, assume that they will have to absorb the tax, that it cannot be passed on to the consumer. In Mississippi, retail merchants contended that the measure would drive them into bankruptcy, but when the tax went into effect it turned out that the old adage that "the consumer always pays" still holds good. On the second day of May, the day the tax went into effect, merchants announced new prices with the two percent sales tax added and had no difficulty in passing on the tax burden. Every mercantile establishment in the state from the smallest soft drink stand to the largest department store, reports after a month's trial the republic has taken kindly to the new tax and is paying it gracefully and without serious protest. "This is eminently proper," says Governor Conner. "The measure was intended as a tax on consumers, and I am confident that the merchants, after giving it a fair trial, will have no complaint to offer." In the first place, it is not a tax on earnings but a tax on spending up to the amount thereon. 9—$1,200 each year from total gross proceeds. A feature of it makes practices gaged in business ing for the station, keeping a monthly returns allowed postage or Danger Is. All businesses $10 a month must ports. Smaller oterly. Some classes o cerns are also i establishments be 1 per cent. and ice factories cent. The danger in any other new f course, likelihood age tax spenders If adopted merely upon the tax pay of its purpose as means of red taxes which fall estate, it certainly mended. And as beginning, one o be hoped for from by making every dollar tax consci make everybody w anything realize the state, and th which the law-ming. Craemer Coun Heads Chambre Bureau Governn ting a new idea through the heads of legislators. For, after all the main objection to the sales tax is that it is something new, and being new, members of congress and of legislatures are afraid of it for fear that in some way it might injure them politically to be for it. People, generally, are conservative. They distrust change. But they are not nearly as conservative as a good many politicians think they are. Intelligent Interest The theory of the sales tax is not so much that everybody pays it, as that everybody knows that is paying it. There is no tax, of any kind imaginable, that is not paid, in the long run by the ultimate consumer. That is something politicians, or some of them, understand, but which they think the average man in the street does not understand. It is one of the most prevalent delusions among law-makers that they can make people think they are not paying taxes when they are. And there is no way of concealing from the man who pays a tax of two percent when he buys a radio, or a bicycle, or a Panama hat, the fact that he himself is paying the tax. Every time one buys a pack of cigarettes or playing cards now he is reminded of the tax he pays, when he breaks the revenue stamps. Is long as there is any considerable body of people who think that they do not pay taxes, that the government's revenue is derived only from the rich, there will be large bodies and groups of people trying to get money from the government on the theory that it comes out of somebody else's pockets. When any sort of a tax is so distributed that everybody pays it and knows that he is paying it, then there is a much better chance that everybody will take an intelligent interest in how the tax money is spent by legislatures and congress. That is one of the soundest arguments in favor of the sales tax. The best argument of all in favor of the sales tax, however, is that it is the one tax which is automatically distributed among the people in precise proportion to their ability to pay it. If there were a sales tax of two percent, let us say, on every article of commerce, then the man who spends $500 a year would pay $10 in taxes, and the man who spends $5,000 would pay $100 in taxes, and so on. The man who spend nothing would pay no sales tax; the multi-millionaire who spent half a million dollars a year would pay $10,000 in sales taxes, if the rate were uniform on all commodities. Every scheme of sales taxes exempts from the tax certain classes of commodities, however, such as necessary food and low-priced clothing, so that people of low incomes pay pro- Every mercantile establishment in the state from the smallest soft drink stand to the largest department store, reports after a month's trial the republic has taken kindly to the new tax and is paying it gracefully and without serious protest. "This is eminently proper," says Governor Conner. "The measure was intended as a tax on consumers, and I am confident that the merchants, after giving it a fair trial, will have no complaint to offer. "In the first place, it is not a tax on earnings, but a tax on spending, and the people, realizing the measure is absolutely essential to balance the State's budget and put us on our financial feet again, will pay it cheerfully." Belleves It Fair "Mississippi is merely leading the way. I believe other states are going to find that the retail sales tax is the only way out and that experience will prove it is in reality the only suitable form of taxation. "Our state was forced to adopt it as an emergency measure. We have but two things to tax in this state, property and business." The property tax system has broken down because of economic conditions among the farmers, and we had to take the sales tax, whether we wanted it or not." The general basis of the sales tax in Mississippi is 2 per cent, varying on only a few classes of business. It includes all business and professions, exempting only insurance companies, building and loan associations, state and national banks, mutual savings banks, religious, charitable, scientific and educational institutions, fraternal societies and hospitals. Business men are required to keep accurate books reflecting their gross income, preserving all records relating thereto, subject to inspection at all times. Here Are Deductions Deductions are allowed from gross sales as follows: 1—Sale price of goods taken in exchange for new goods. 2—Credit sales by retailers and wholesalers may be reported as collected. 3—Taxes collected on gasoline and tobacco. 4—Gross receipts from sale of agricultural products when sold in the original state or condition of preparation of sale. 5—Sale of fertilizers, seeds, boxes and crates used in preparing agricultural products for market. 6—Sales of schoolbooks when sold under state contract. 7—Sale of cotton, seed cotton, lint cotton and baled cotton. 8—Amounts received from life insurance policies and annuity contracts. At the present nouncement, "the commerce is common proposition, that of government. Its final bill or no part except that of seeking economies in public speakers will show government has with population a different charge up the tax rates income and spread Committees have every county and for this purpose says the announcement dated the early comparison ofor the last few time a statewide tative of every g nation of state is studying and changes will be about further economy undoubtedly will changes an din changes which malthe people. At al which has been added in all sections of government taxation will be Mr. Craemer in Southern California. BAYER ASPIRIN is always SAFE BEWARE OF IMITATIONS Demand this package Bayer Tablets of Aspirin Genuine Genuine Bayer Aspirin, the kind doctors prescribe and millions of users have proven safe for more than thirty years, can easily be identified by the name Bayer and the word genuine. Genuine Bayer Aspirin is safe and sure; always the same. It has the unqualified endorsement of physicians and druggists everywhere. It doesn't depress the heart. No harmful after-effects follow its use. Bayer Aspirin is the universal antidote for pains of all kinds. Aspirin is the trade-mark of Bayer manufacture of monoacetic acidester of salicylic acid. up to the amount of premiums paid thereon. 9—$1,200 each year, to be deducted from total gross income and or gross proceeds of sale. A feature of the sales tax is that it makes practically every person engaged in business a tax collector serving for the state without compensation, keeping a record and making monthly returns without being even allowed postage on the remittance. Danger Is Extravagent All businesses collecting more than $10 a month must make monthly reports. Smaller concerns report quarterly. Some classes of manufacturing concerns are also included, soft drink establishments being required to pay 1 per cent, and cotton seed oil mills and ice factories one-quarter of 1 per cent. The danger in the sales tax as in any other new form of taxation is, of course, likelihood that it will encourage tax spenders to new extravagances. If adopted merely as an added burden upon the tax paying public, it will fail of its purpose. If adopted by states as means of reducing the burdensome taxes which fall upon owners of real estate, it certainly is to be highly commended. And, as I pointed out in the beginning, one of the great things to be hoped for from the sales tax is, that, by making everybody who spends a dollar tax conscious, it may in time make everybody who spends money for anything realize that he is a part of the state, and that it is his money which the law-makers are appropriating. Craemer Named County Speaker Heads Chamber of Commerce-Bureau to Reduce Government Costs County Seeking $401 From Ranch Protective Measures Done by County On Bastanchury Ranch, Report Seeking to obtain $491.89 in two suits for two different protective measures Old Laws Punished Incendiaries Too That the forest incendiary is not a new menace to public welfare is provided by a law promulgated 250 years ago in Pennsylvania. In 1676 the Duke of York, brother of King Charles II of England, made the penalty for kinilliam a fire in the woods and permitting him to escape to cultivated land, the payment of all the damages plus one-half more as a fine. If the guilty person Craemer Named County Speaker Heads Chamber of Commerce-Bureau to Reduce Government Costs Justus E. Craemer, Orange newspaper editor and publisher and vice-president of the National Editorial Association, was named chairman of the Orange county speakers bureau in the chamber of commerce campaign throughout Southern California to reduce costs of government. Appointment was made by the Southern California Council of the California state chamber of commerce, whose purpose is to provide speakers to present non-partisan facts before service clubs, trade associations and other groups. "At the present time," says the announcement, "the state chamber of commerce is committed to only one proposition, that of reducing the cost of government. It is favoring no special bill or no particular movement except that of seeking to bring about economies in public expenditure. Our speakers will show how the cost of government has grown in comparison with population and will set forth the different charges which go to make up the tax rate in comparison with income and spread of population." Committees have been organized in every county and locality in the state for this purpose. These committees say the announcement "have stimulated the early filing of budgets and the comparison of costs of government for the last few years. In the meantime a statewide committee, representative of every group and every section of state is busily engaged in studying and determining what changes will be necessary to bring about further economies. These changes undoubtedly will involve legislative changes an din the future no doubt changes which must be voted upon by the people. At a later date a program which has been agreed upon by leaders in all sections of the state for a reduction of governmental expenditure and taxation will be presented." Mr. Craemer is chairman of the Southern California Council. County Seeking $401 From Ranch Protective Measures Done by County On Bastanchury Ranch, Report Seeking to obtain $491.89 in two suits for two different protective measures done, the county of Orange Saturday filed against property owned by the Union Oil company which now is under lease to the Bastanchury Ranch corporation, Ltd. Both liens are for pest control work one seeking $386.51 as the balance due on a bill of $1847.87, and the other for $105.38, the entire amount of the bill for eradication work on other parcels of property involved. The complaint states that Agricultural Commissioner A. A. Brock notified the owners and leaseholders in January that red scale had been found on trees on the property. The law allows 20 days for the work to be done. It wasn't, so the county entered the property in February, the cost being filed as a lien against the property. Water Firm Gives Placentia Property The railroad commission has authorized the American States Water Service company to convey certain operative property to the City of Placentia Orange county, for sidewalk purposes. NOTICE ALL BANK OF NEW TAXES ON BANK SAFE DEPOSIT Effective J Two Cents or The Revenue Act of 1932 imposes following instruments presented for Checks, drafts or orders for the bank, banker, or trust company; Deer Fall Prey To the Cougars Predatory Animals take Heavier Toll Than Hunters In Forests Predatory animals killed more deer in the eleighteen national forests of California than were killed by deer hunters during 1931. Figures furnished by the forest service to the state fish and game commission give the number of deer killed by mountain lions, coyotes and bob cats as 24,420. Those killed by hunters in the national forests of this state were placed at 18,721. Deer legally slain during the 1931 season throughout the state totalled 25,805. Trinity Forest reported the heaviest kill by beasts of prey, the forest supervisor estimating the number at 6,120. Shasta Forest came second with 3,200 deer killed; California Forest, 2,500 and Klamath Forest, 2,465. These forests all in northern California, contain the bulk of the mountain lion population, numbering some 1,656. 245 Bears Killed Forest rangers report 30 antelope killed by carnivorous animals in the Modoc Forest during the year just ending. There were killed in the national forests of the state or adjacent to them, 6,765 coyotes, 2,032 bob cats and 216 mountain lions. The report further indicates there were 245 bears killed in the national forests, as a protective measure for farmers and cattle growers. Trinity leads with 55; Klamath and Shasta forests with 46 each; California, 27; Stanislaus, 21 and Sierra, 20. There are now said to be 8,482 bears roaming the higher ranges, under protection of the California Fish and Game Commission. Bureau Explains New Ticket Tax Levy Placed On Ducats of 41 Cents or More at 1 Cent for Each Dime The tax on admissions under the new revenue act is of such widespread interest that the bureau of internal revenue issued the following statement on the subject: "The law which has been in effect since June 28, 1928, taxes admissions only if the amount paid for admission is in excess of $3, while under the new law all amounts paid for admission are subject to tax at the rate of 1c for each 10c or fraction thereof. If the admission charge is 4c or more. This tax must be collected from the persons who pay the admission charge and is taxing free or reduced rate admissions a tax on admissions not only to theaters, but to any place. Another important charge is taxing free or reduced rate admissions (except bona fide employees, municipal officers on official business and children under 12 years of age) on the basis of the established price of admission paid by other persons. "Newspaper reporters, photographers and radio announcers admitted free are not exempt from the tax imposed on free admissions unless they are also bona fide employees of the management of the place. "Under the new law the tickets of admission must show the established price of admission, the tax thereon, and the name of the theater or place to which they are valid for admission. Tickets of admission sold prior to June 21, 1932, are not taxable under the 1932 act; but the entire amount paid for admission prior to June 21, 1932, the effective date of the controlling section of the new law, would be taxable under the 1928 act if in excess of $3." Bill Schumacher Petition Is Filed Score of Prominent Folk In Third District Support Incumbent Supervisor William Schumacher's petition for re-election to supervisor from the third district was filed with the county clerk Saturday. Circulated by Paul Tedrick of Anaheim, the petition contains the following names: Robert L. Rovalty, insurance, Anaheim; J. E. Fisher, mining, Anaheim; Charles A. Brown, barber, Anaheim; William A. Dolan, banker, Anaheim; Dr H. A. Johnston, surgeon, Anaheim; F. A. Vinnabuth, merchant, Anaheim; Fred Koesel, building and loan, Anaheim; Joe Wagner, rancher, Placentia; Lewis Jacobson rancher, Placentia; M. W. Martenet, Jr., merchant, Anaheim; Donahi C. Jones, real estate, Fullerton; Stephen Lovering, chemist, Fullerton; James R. Walker, Yorba Linda; Erschol Morris, real estate, Anaheim; Lucia I. B. West, accountant, Fullerton; H. E. Becker, rancher, Fullerton; W. A. Culp, Brea, farmer; G. F. Henigan, insurance Brea; Edward M. McDonald, secretary chamber of commerce, Brea; Walker C. Davis, banker, Brea; Lynn A. Hougue, merchant, Brea; Harry Ray, merchant, Brea; John R. Collins, lumber agent, Brea; John B. Souks, rancher, La Habra; N. M. Laurier, rancher, Le Habra; W. G. Merrill, Anaheim; merchant; Alfred Heving, druggist, Anaheim; J. W. Sackett, rancher... Anaheim; Frank Newton, Anaheim; merchant... NOTICE TO BANK CUSTOMERS TAXES ON BANK CHECKS AND DEPOSIT BOX RENTALS Effective June 21, 1932 Two Cents on Bank Checks Act of 1932 imposes a tax of two cents upon each of the instruments presented for payment on or after June 21, 1932: bills or orders for the payment of money, drawn upon any bank or trust company; such tax to be paid by the maker or Two Cents on Bank Checks The Act of 1932 imposes a tax of two cents upon each of the instruments presented for payment on or after June 21, 1932: receipts or orders for the payment of money, drawn upon any bank, or trust company; such tax to be paid by the maker or person paying any of the instruments mentioned, as drawee instrument, must collect the amount of the tax imposed by an amount against any deposits to the credit of the maker such instrument. On and after June 21, 1932, the banks of Anaheim will charge accounts of customers two cents for each check. Over Cent on Safe Deposit Box Rentals The Revenue Act also imposes a tax equivalent to 10% of the amount on or after June 21, 1932, for the use after such date deposit box, such tax to be paid by the person paying for the deposit box. Person making any collections mentioned is required to collect an amount 10% additional to the amount of all deposit box rentals. Clearing House Association BANK OF AMERICA SOUTHERN COUNTIES BANK