The Bismarck Tribune

The New Revenue Bill
It is not humanly possible to devise any tax bill which will please everyone, but it must be self-evident to thinking men that at all costs the national budget must be balanced and that the revenue to do this must come from federal taxation.
If this is not done business conditions will become worse rather than better. It is part of the general scheme of economic reconstruction that the federal budget be balanced and that the strictest economy be practiced in appropriations.
The revenue measure now under discussion in congress designs to raise $1,096,000,000 additional during the fiscal year which begins next July. While this falls short of balancing the budget it is hoped that by retrenchments and certain policies of refinancing on the part of the government the budget will, for all practical purposes, be balanced.
Secretary Mills, as did his predecessor, Mellon, referred to the present system, as "the cowardly policy of borrowing." National credit cannot be sustained by that method and it is better to face payday now than postpone the agony. It is unfortunate that such a revenue bill had to be written while the nation confronted by a heated political campaign and all parties are trying to curry favor.
It is true, however, that neither party can claim the revenue measure nearer support. This act is going to be unpopular and citizens generally will cuss and discuss it within the next few weeks.
The basic feature of the bill is the general tax of 2½ per cent on the sales price of all manufactured articles, with but few exemptions. This tax is fashioned somewhat after the Canadian system and has been urged most vigorously by the Hearst papers who are grooming Speaker Garner for the Democratic presidential nomination, although a sentiment in his favor is developing rapidly throughout the country-Congressman Sam Rayburn of Texas.
This sales tax will be administered as in Canada by a licensing system which will apply to all manufacturers doing a business of more than $20,000 annually.
It is not denied anywhere but that this tax affecting most articles of merchandise-will be passed on to the ultimate consumer. That it will increase the cost of living to some extent is not denied. The sad news which is carried to all is that the government must tap the reservoirs which can bring in immediate revenue to pay pressing obligations.
Incomes of the wealthy, too, are to feel the increase in taxes. Within certain limits surtaxes will be doubled.
There will be a restoration of the so-called nuisance taxes, gift and estate taxes, fees for stock transfers, taxes on gasoline and oils, excise taxes on malt and grape concentrates, hitting at the cellar bootleggers and so on ad infinitum.
Probably the measure is as fair a one as can be devised. It comes from a house dominated by the Democratic party and is not exactly what the treasury department wants, but it is the best tax bill that can be written in the present political crisis. This bill is to have the hearty support of the treasury department.