OCR Text |
Show EXCESS PROFIT TAX PYRAMIDS COST There seems to be an almost unl Iversal demand In tho Interest ot Industry In-dustry that tho so called excess profit pro-fit tax be removed. This tax simply sim-ply pyramids the cost of living, the manufacturer must mako a profit and sufficient in addition to cover the tax; goods are then sold to n wholesaler and ho makes his profit on tho gross price which he pays which Includes the tax; tho retailer buys from tho wholesaler and an-other an-other profit Is made on tho goods, Including a profit on tho tax. And so It goes. Abolition ot excess profit pro-fit tax. would encourage industry and lnceascd production and tend to reduce the cost of living. A purchaso tax Instead ot tho excess ex-cess profit tax would collect only one tax from the ultimate consumer and would not necessitate pyramiding pyramid-ing profits on a tax charge as at present. Industry must make a profit pro-fit to operate and maintain payrolls. Hence a tax which Is the least complicated com-plicated and tho least burdensome to Industry falls the lightest on the ul- j Umato consumer as all taxes charged , against Industry must be passed on to the consumer. Hence the necessity for some form of taxation similar to the tobacco tax which adds nothing to the cost ot manufacture but through the stamp tax on the goods which the consumer buys, the necessary revenue reven-ue is raised. ' . --; , INCREASING VfAGES NO REMEDY" The minimum wage" for women -In California Is $13.50 a week. This. Is about the highest InC tho country while retail costs ot food articles according ac-cording to the U. S. Dpartment ot Labor, are much less In California, Oregon and Wahtngton cities than In middle west and eastern cities where minimum wage scheduls aro not as high as on tho Pacific coast. Increases In minimum wage at this time would not atfoct many employes em-ployes as most ot, thorn arc receiving receiv-ing more than $13.60 a week but Its effect In requiring an Increase for all other workera would materially I raise manufacturing costs In Call-' Call-' fornla. Further boosting of mlnlmhm wago schodules kills Incentive far Individual effort and Increased production pro-duction as th'e Inefficient worker gets just as much as the good one. Increasing wages and decreasing production as the Inefficient worker gets just as much as tho good one. Increasing wages and' decreasing production will eventually bring- a "collapso ot industrial activity, Tho adoption of a Btlirhlghormln Imum wage In California would bo the" signal "for 'a 'crusade for high talnlmums'tlfother'states.. , Increased 'production and not In-, creased cost of production Is need ot the'day to bring 'down living costs |