Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-05
DRASTIC TAX RAISE
URGED BY BINGHAM
U. S. Extravaganza" FIayed
in Proposal Aimed to Cut
Federal Spending.
Ccontlnued Prom First Page)

to curb governmental extravaganza is to
increase the number of taxpayers, even
though they pay only small amount
into the Federal Treasury. and to re-
store some of the disagreeable taxes
which tell the voters In unmistakable
terms that the Government Is spending
their money"
After advocating an increase in taxa
ton to meet the increased demands
upon the Government for appropria-
tions. Senator Bingham continues:
Demands Increase.
"If the increased taxation Is levied
only on a relatively small part OF the
population and on the corporations,
the demands for increased expenditures
will continue to grow and the tempta-
ton to grant them viii increase.
ut would seem TO me the part OF
wisdom to increase the taxation all
along the line and to lower the brackets
80 as to increase very greatly the num-
Der Of persons who realize that the Fed
eral Government must raise Its income
from the taxpayers and does not manu-
facture money out Of thin air.
Ever since q large number OF income
taxpayers, who contributed very small
amounts directly TO the Federal Gov
eminent, were by act OF Congress re-
lieved of the necessity of making In
come tax returns or paying any direct
tax, there has been very noticeable IN
crease in demands for appropriations
for all sorts Of purposes.
Economy Followed Taxes.
"As long as q large number OF citi-
2ens paid income taxes. even though
about 1000 900 paid less than $25 per
annun, there was marked tendency
In the Congress to economic.
''It Is very natural that members OF
Congress. representing constituencies
where there are today very few income
taxpayers, should find it increases their
popularity to vote for liberal appropn-
atoms.
at is repeatedly stated that the taxes
should be borne by those best quaineo
to pay, which stated in plain English
means large corpora ions and those m
dividuals who pay large surtaxes. ~
is bad for the country that tne great
mass of our citizens should feel tnat
they pay no taxes at all TO the Federal
Government; and that the money used
for the promotion of agriculture, Tor the
relief of those out Of employment ana
for other purposes, comes out OF the
pockets of Uncle Sam. or the very rlcn,
or Of the big corporations, and there
fore, Is all velvet
People Always Pay.
"Students of public finance have often
told us that all the money spent by the
Federal Government eventually comes
out Of the pockets of all the people,
largely in proportion to the number OF
things they buy and the amount OF
money they spend. The average voter,
however, never thinks of this ana ap-
proves all kinds of public expenditures
SO long as they do not increase the
direct taxes which he has to pay and
which he knows he Is paying.
at have noted, in the debates on the
floor of the Senate during the past year
and in some of the interviews which
have been given to the press by Sem
ators favoring an increase In taxation
at the present time to meet the IN
creasing demands made on the teoersS
increases as being merely more demands
on the corporations and on those who
pay large surtaxes. OF course this mas
a wide popular appeal:
Clearly. however, 1t only leads to
further extravaganza and to more hard
ship bearing indirectly on the shoulders
of the great mass OF citizens VINO pay
no taxes directly to the Federal Gov
eminent, but who actually pay their
share of the taxes every time they pur-
chase anything.
Burden Is Indirect.
Senator Bingham says he realizes
that his proposal will be extremely UNI
popular today. He continues:
ut is always pleasant to receive
money from the Federal Government.
1t is never pleasant TO pay taxes. AS
long as the great majority OF our citi-
zens do not feel any direct burden OF
Federal taxation the great mass OF the
citizens are led to believe when big
Federal appropriations are made that
they are getting something for nothing.
"It would seem to me that the de-
bates. and the authorizations for APP
preparations, during the past Congress
point clearly to the fact that 1t would
be sound public policy to revive some
of the nuisance taxes and to- lower the
brackets for normal income tax pay
ments so as to bring forcibly home to
the minds of several million citizens
the fact that the money which the
Federal Government spends all comes
out Of their pockets.
Suggests Auto Sales Tax.
"The Federal Government Is asked
to spend hundreds of millions of dol
lars on Federal aid for road projects
and yet collects not one cent in taxes
from the sale of automobiles which use
those roads. Why Is 1t not fair and
proper that the money for Federal aid
for roads should come from direct |
tax on the automobiles that. use those
roads?
"A two-cent stamp tax on bank
checks should. not. prove burdensome TO /
poor people oI those who pay theA4