The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-05-06

packer control legislation urged by
the League more than the princi-
pies of some legislation on this
subject hitherto introduced. Con-
gresham Kitchin was most favor
able to the principles of the entire
program. Senator Lodge stated that
the entire program must early be
considered by Congress, and Sena-
| tor Underwood, while declining to
| commit himself, definitely said he
| thought he would be found favor
able to most of the program though
he is opposed to government owner
ship of the railroads.
Our National Revenue System
VIM. H. Johnston, president of the
international Association of Ma
chinists in his address on "The Pro-
gram of the League" stated that
| one proof of the necessity for the
prompt adoption of the Peoples Re
| construction League program is the
fact that if the federal government
is to meet the obligations which
come due during the next fiscal
year beginning July list next, it
| must raise through taxes or bonds
| nearly one-siXth of the total ma
tional income or about eight billion
| dollars while under the Cummins-
| Esch law about one-seventh of the
| national income must also be paid
into the Golfers of the railroads to
| provide living wage for the en-
ployees of the railways and to yield
| the six per cent return contemplate
| ed by the Cummins- Esch law.
Mr.. Johnston opposed the pro-
| posed sales tax pointing out that
22,696 mlilionaires are the possess
ors of fortunes estimated to be
worth approximately $4,000, OOO,-
600, or over 81 per cent of the ma
richest people own nearly per cent
of the national wealth and he as
| serted: "The concentration of wealth
in this country has reached a stage
| which is a menace to our institu-
TONS" Mr.. Johnston, also charged
that the U. S. Steel Corporation is
making a fight against labor which
| must be met and combatted.
Congressman James A. Frear of
Wisconsin who has been leading the
fight in the House against the sales
| tax, stated that the turnover or
sales tax is unjust in principle
and violates the fundamental law
of taxation that government ex-
penses be paid in proportion to the
| ability of the citizen" He said,
| "Under the turnover sales or con-
sumption tax Mr.. Rockefeller with
his five billion dollar annual income
will pay the same tax for bread
sugar, clothes and everything that
| he eats and wears, as the man on
! the farm or in the mills with this
| difference, that the man with the
| family will have so many more
mouths to feed and so many more
backs to clothe, provided the same
kind of food is eaten. and the same
kind of clothing is worn in each
| case"
Congressman Frear exposed the
strong lobby with extensive propa-
ganda and the tremendous force
well backed by money seeking to
| persuade Congress to repeal the ex-
cess profits tax, and substitute the
sales tax He estimated that a
million dollars for the support of
such lobby and high priced writ
ers in Washington, has been raised
for propaganda on behalf of the
| sales tax.
jackson H. Ralston pointed out
that we have but scratched the sur
face of the great sources of wealth
| to be had in inheritance taxes and
that it might easily be computed
that averaging a period of ten or
more years not less than three bill
lions of dollars pass annually by
millionaire inheritances. A tax
amounting to one-third of this sum
would, therefore, he stated repre-
sent one billion dollars which could
be secured from inheritance tax as
against a comparatively small sum
secured today. He pointed out that
| such tax might be paid either in
cash or government bonds and re-
| lieve the community from the dis
aster and hardship which would en-
sue from the sales tax. He con-
cluded: "If a general property tax
were levied, payable in a similar
manner either in cash or bonds, the
| entire national debt might be wiped
| out in a couple of years, and, while
such a measure might seem drastic
| for the moment all industry would
| thereafter be freed from a very
| large part of the present national
burden"
Western Starr criticised the sales
| tax saying, "The term sales tax
| is misnomer. 1t is a purchase and
not sales tax for it is always paid
by the purchaser. A tax is a COM
pensation paid to the state by the
tax payers for and in consideration
of services rendered by the state
| to the tax payers.
With this just principle applied to
the administration of the public
| utilities, natural resources and credit
| operations of the United States,
we would not need a tariff tax, eX-
| else tax, luxury tax, surtaX, or sales
tax to enable the government to
meet all it's obligations"
The Drive to Reduce Wages and
Increase Profits
James P. Noonan, president of the
International Brotherhood of Elec-
trical Workers, criticised "The drive
to Reduce Wages and Increase Prof
| it's" asserting that the big employ.
ers are engaged in an effort to low
er wages below figures found by
our most eminent statisticians to
be necessary to maintain the Ameri-
can standard of living. The larger
proportion of high prices during
the war were profits not attributable
to real costs of production but SIM
| ply the cashing in on an oppor-
tunity. Millionaires were made big
ger over night and many who We're
already millionaires doubled or treb-
I i 1 Il L 4 L
we are now in the midst of a
| "n,ada to ordar denrassion in husi