Quote – John C. Gall, Associate Counsel National Association of Manufacturers, Testimony, House Committee on Ways and Means.

The proposed pay-roll tax is not only a sales tax, but, in addition, is a production tax, a processing tax, and a distribution tax. It has all the vices and none of the virtues of a sales tax. It is selective as to the classes of business against which it is to be assessed, and hence, is discriminatory. It is cumulative; it applies over and over again on every operation from the production of raw materials to and including the final sale of a product to the ultimate consumer…The pay-roll tax is a hidden tax and each successive purchaser of a commodity pays the tax if it can be passed on under the circumstances of the particular transaction.

John C. Gall, Associate Counsel National Association of Manufacturers, Washington, DC, 313-357, esp. 335, “Unemployment Insurance,” Hearings before the House Committee on Ways and Means, Mar. 21-24, 26-30, 1934.

Wednesday, March 21, 1934