Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-01
Bingham Points Out Need
For Additional Taxation

Continued From Third Page)
! ployer5 may be forced to lay off many
Of their employees and put many others
| on part time or on lower wages. But
the burden of taxes, except in so far
| as they are levied on net earnings, can
not be avoided.
! This Is the time to think carefully
about the constant increase In govern
mental expenditures. These expendi-
lures are influenced to q great degree
| by political and social considerations
And now We have the heavy demand
! for special expenditures in this time
OF unemployment. Since the money
| which Is spent comes in large measure
| from those who are not directing this
| expenditure, since legislative and adj
ministrative of1cials are virtually al
ways spending other peoples money
| 1t is difncult to economic and prac-
tice retrenchment. Popular represent
atives are naturally more interested In
| devising popular ways of spending pub
| lie money than in denying the demand
! OF those who want better schools, bet
| ter roads, better hospitals, more play
| grounds, more parks, more municipal
| entertainments. In the field of private
business retrenchment comes swiftly
and surely. In the field of government
there is not the same measure Of re-.
straint. uns,
Nearly every one likes to see, -daie
/ Government spend money on beaitkifsal
roads, magnificent Federal buildings
post Offices, customs houses, great ships
| to carry our Flag across the ocean,
| helping farmers who have been dis
| tressed by drought or low prices for
their products, giving pensions and
| compensation to the veterans Of our
wars, seeing to it that they are proper
| ly taken care Of in beautiful new hos
pitfalls. and maintaining the dignity and
| representation of our country by
promptly meeting our obligations
whether they consist of salaries to
Government employees or interest on
cost money. They cost a great deal OF
money. Some of them can be pared
down, but no one suggests reducing
the interest on the public debt by offer
ing to pay per cent on q bond call
ing for Az per cent. No one proposes
to reduce pensions paid to the veterans
of the Civil War or the Spanish-Amer-
lean War or, compensation allowances
paid to disabled veterans of the Great
War. Yet those items, the interest on
the public debt and the payments to
the veterans constitute more than 81
200, 100000 or more than half of our
total Federal expenditures.
Tremendous Demands.
On the other hand, q recent caller
at the White House, representing the
Veterans of Foreign Wars, urged upon
the President the immediate payment
to the soldiers of compensation. GER
tif1cates which are not due for a num-
Der of years, and whose payment at this
time would cause an immediate expendi-
ture of about two billion dollars. Not
withstanding the fact that every one
knows we are facing an annual deficit
of about one billion dollars or more,
there are tremendous demands that we
indulge In building program covering
/ not only public buildings and roads, but
other public works to the extent of
five billion dollars; that we buy surplus
grain and give 1t away to the tune of
several hundred million dollars; that
we help the banks to get rid of mort
cages which they are carrying to the
tune Of two billion dallArs. In other
words, there are projects being urged
upon us, through widespread propa-
ganda and considerable public interest.
which would call for the raising within
the next IL months, in addition to
our normal expenditures, of sum not
far from ten thousand million dollars,
or, to put 1t differently, of ten billion
dollars. No one proposes that We raise
this by taxation. The gentlemen who
want us to spend all this money sug-
gest that 1t can all be borrowed, and
therefor win not increase taxes. I wonder
if any one believes that. 1 wonder If
any one thinks the money which the
Government spends does not eventually
come out of the pockets Of the tax
payers? Even supposing that 1t were
possible to float in these days of fear
and depression a loan of ten billion
dollars to cover these worthy projects,
we certainly could not do so without
offering to pay at least per cent In
fact Liberty bonds today cannot be
sold at that rate. 1t is nearer Az per
cent. But even supposing the rate were
per cent, the annual cost to the tax
payer OF interest on this new public
debt would be four hundred million doll
lars, or more than a million dollars a
day. We are already running behind
to the tune of about three million dol
lars day. and the adoption of these
proposals would simply increase our
deficit by another one million dollars
day.
Where is it going to stop? How are
we going to stop It? What are we going
to do about it? Are we going to borrow
billions and push still heavier burden
onto the shoulders of our children and
the next generation? II not, must we
not increase the income tax all I'D and
down the line, lower the brackets and
raise the rates even though everybody's
income has been seriously diminished?
Should we not impose a selective sales
tax on things which we all like to use
and enjoy like automobiles and radios?
Whv not try to find new sources of
taxation and by modifying the volstead
act. so far as it can be modified under
the Constitution, permitting the manu-
facture and sale of good per cent
beer from which statisticians believe we
might easily derive an additional rev.
sn1se of 5000 900 900 to help meet the
deficit? How far are we willing to 90
in cutting down governmental expendi-
t,,rn9 we have been doing q lot of
costly building. magnificent new school
houses in which one every takes pride.
new state, municipal and Federal build
incs we are urged to spend even more
on these projects. Where is the money
to come from?
Have Been on Grand Spree.
Here are some of the problems, my
good friends, who have been patiently
Retaining to a very serious talk this eve
Ming. here are some Of the problems
vhich face all citizens interested in
nronoting the welfare Of their Govern
ment They do not concern Washington
alone They concern every State capital,
every county seat and every city and
town in the United States. The trouble
4 ne have been increasing our public
exnandirltes fEacA 90 fas 90 - haNa