Evening star., 1931-11-29
|CAPPER DISCUSSES TAX
PROBLEMS OF CONGRESS
Kansas Senator Asks Cooperation Of
Both Parties in Radio
Forum Address.

Many Senators will not vote to ratify
q debt reduction pact while European
nations continue to spend for armament
many times the amount Of their debt or
reparation payments. Little relic woulS
come from limiting Europe's obligations
If the money merely went into cruisers,
guns and bombing planes. Before Amer
ica can know whether improvement
would result from reduced debts it must
know whether Europe is in mood to
'educe armamentS. We must be reason
ably sure that the effect Of any move
to tighten or adjust intergovernmenta
debt burdens will not be to clutter the
road with bayonets.
Our own pre-war and navy appro-
priationS that amounted to 266 millions
combined in 1918, soon jumped to 618
millions year, and now are $50 mil
lions annually. They are going higher
unless the nations agree on naval
holiday or a radical disarmament.
Therefore, I am heartily with Pres
ident Hoover in his resolve to cut the
naval budget and his purpose to elini-
nate the building program authorized
by Congress for the fiscal year.
Against Naval Program.
This will mean a great saving. 1t
will indicate to the other powers that
the United States is preparing to take
a real naval holiday" If the world
could be reasonably insured against war
by the forthcoming disarmament con-
ference. large part of the Az billions
the great nations now spend annually
for military purposes could at once
be diverted to wiping out their deficits
and to balancing their budgets. And
that would remove a danger to Europe
now more imminent than war.
Our pending naval program, treaty
program, calls for the expenditure of
nearly 1000 million dollars. 1t has
been proposed to have this Congress
appropriate 750 million dollars for naval
purposes. I am opposed to this at
time when women and children may be
starving and freezing in our industrial
cities. Also because the world is unable
to carry the load of armament it now
has. and our own national treasury Is
facing a shortage of more than 1000
million dollars.
The President would trim this huge
appropriation for new warships down TO
500 million dollars, which Is q modest
cut under the circumstances.
Now there is one thing we must bear
In mind always when appropriations Of
money for any purpose by the Govern
mept are suggested.
Any money appropriated by any gov
ernment for any purposes requires the
the government treasury.
Will BE Transfers.
That means the government will have
to raise that much money before it
can be paid out.
Along the same line, and just in pas
sing, our Government of the United
States cancels the debts of foreign gov
ernmentS owing to the United States
Government, those debts are not really
Cancelled.
Those debts will just be transferred
from the taxpayers Of those foreign
governments to the taxpayers of the
United States.
For that reason myself am not in
sympathy with the demands of inter-
national bankers-that the United
States cancel the war debts of European
nations owing to the United States.
I shall work for q reduction in our
own expenditures for the Army and
Navy by the next Congress. President
Hoover I am glad to say already has
returned the budget of the Navy De-
partment, with instructions that its
asking must be reduced by some 66
million dollars. And that reduction Is
being made.
But while it might be possible, on
paper, to reduce Federal expenditures
by 900 million dollars a year to meet
the deficit in operating costs of the
Government, in fact it Is not going to
know it VIII not be done; so does the
average citizen.
to have to meet the situation from the
outside. In spite of the cry for re-
duced taxes, the next Congress Is going
to have to provide more revenue for
the Federal Government. Estimates as
TO the additional amount that will be
raised by taxation next year vary-the
average of fairly well informed esti-
mates that have come to my attention
is about 500 million dollars above the
amount raised during the past fiscal
year.
Against Dole System.
Before getting down to the different
means proposed for raising more Fed
eral Government revenue, we also
should take into account the demand
there will be for increased Federal an.
preparations for public work and for
taking care of the unemployed, either
directly or indirectly. l am opposed to
anything in the nature of a dole, but
We must see that no one goes hungry.
In its consequences the unequal dis
tribution Of wealth Is perhaps the most
far-reaching in its effects. OF As mil
lion Americans gainfully employed only
Tour million make income tax returns.
Fewer than 10 per cent of the people
receive more than IS per cent Of the
national income
Adding to this unhealthy condition.
tax exempt property is increasing ran.
idly. In Massachusetts, alone, an aver
age OF so millions of property is trans
1erred to the non-taxable class every
year. This promotes both unequal dis
trlbution of wealth and of the burdens
OF the Government. The tax-exemp-
ton privilege is enormously abused.
Most tax-eXemption laws should be re-
pealed Much good and relatively little
harm will be done If exemption from
taxation were completely abolished.
Men OF large wealth who have large
incomes are crying for general sales
tax. O'o'
Now I am fundamentally and for
ever opposed to a general sales tax.
II places the tax burden still more
heaVlly on the persons least able to
anord it. The man whose. income is
barely sufficient to meet his living exs
penSeS, the man whose income does no.
meet his living expenses. will have to
pay tax on everything he buys. under
the general sales tax. And he is in nc
position to do it.
On the other hand, the general sales
tax falls hghtest on those with the
larger incomes, on those whose prop
erty the Government protects at the
largest expense, on those who profit
most from Government protection and
are best able to pay for Government
protection.
Tax Higher Incomes.
1t may be that the Federal csovuru-
ment will have to levy some luxSg9S
sales or excise taxes; there is justifca.
ton for such taxes when the necessity
is great.
For myself, am In favor or i1ign-