The Nome Nugget

CURB THE HIGH COST OF GOVERNMENT
(The Seattle Post-Intelligencer)
A new generation is learning for the first time that
federal taxes can be reduced as well as advanced.
The incentives and inspirations behind the American
system will be heightened by Congressional action in
slashing nearly 6 billion dollars from the peak wartime
tax schedules.
But the action of the legislative body will prove shallow indeed if it does not validate the spirit of the action
by drastic economies in the expenditures of government.
Tax reduction will prove an economic mockery if it is
merely translated into continuing federal deficits.
After the prolonged and hideous era of red ink governmental financing, the objective should be to take advantage of the economies of a peaceful era to bring the
federal budget into balance promptly.
Such a policy will hearten the people as a symbol of
national solvency.
Popular accounts of the current tax reduction program
will create a false popular impression.
For example, it was reported that the conference
committee in Congress relieves corporations of 3 billion,
136 million dollars of taxes and individuals of 2 billion,
644 million dollars.
Such a half truth plays into the hands of the demagogues.
The fundamental reality is that individual citizens
bear 100 per cent of the tax burden.
Some taxes, such as the personal income tax, are paid
directly to the government by individuals.
On the other hand, some taxes, such as the corporate
income tax, are paid indirectly by individuals in the
cost of goods.
The corporations, as sellers of merchandise, collect
from customers in the price of goods all elements of
business cost, including the cost of supporting the government through taxation.
Thus, if the bookkeeping entries are completed, it becomes apparent that the corporations collect tax funds
from their customers, and redistribute them to the agencies of government.
Thus, individuals participate in the benefits of the
entire reduction of the tax load.
The corporations are mere clearing houses or go-betweens.
Unless the mechanics of our economic system are
clearly understood, the people are subject to exploitation by political adventurers with an ax to grind.
For too many years, spendthrift politicians have pulled the wool over the eyes of the people by creating the
illusion that they were soaking only the corporations
and the rich.