Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-28
Taxation Puzzle Promises
To Be Outstanding Issue

gram as the administration will offer
will meet with the acceptance Of Con.
greSs. or whether the House of Rep-
reSentatives will offer one Of It's own
in opposition to any plan which may
be proposed by the administration and
thus a campaign issue be joined right
here"
AS to definite proposals for taxation
to meet the need for increased revenue.
the South Bend Tribune comments:
Some legislators favor widely diffused
increases. Indeed, a Federal sales tax
on necessities has been proposed, but
that seems to be out of the question.
Other legislators would make a small
minority among the taxpayers carry all
the load. 1t is a foregone conclusion
that some taxes abandoned In the
period Of national prosperity will be
restored" The Houston Chronicle con-
cludes: Apparently the best program
for Congress is to increase slightly the
income rates in the higher brackets
certainly from a political viewpoint
! this must be done) and to levy sales
tax on articles in the luxury and semi
luxury class. The process will not be
without its painfulness. At that, how
ever, the experience may serve US in
future days by teaching us to keep
Federal expenditures within the bounds
of prospective revenue and to provide
more stable basis for national reve-
nue. than the income tax system per-
mitS"
Endorsement of the sales tax as fair
and impartial is voiced by the Akron
Beacon-Journal, while the Worcester
Evening Gazette declares: ITO under
stand how really light would be the
- H.
only to consider the enormous volume
OF the Nations retail business" The
Philadelphia Inquirer believes that, "if
properly drawn and enacted, sales
tax would burden no one" and that,
what is more, it would be productive,
which cannot be said Of a raid on In
comes"
Among the proponents of the plan
to increase the rate for the higher in
comes is the Wheeling Intelligencer,
which argues that unless the great
bulk of the new revenue comes from
large income and inheritance taxation
and minimum from small incomes
and sales taxes, the burden will not be
distributed fairly The Pasadena
Star-News pleads that the small in
come should not have increased bur-
dens."
On the other hand. the Schenectady
GaAcCCe nOldS LnaL mistake was
made several years ago in eliminating
a great number of income taxpayers by
raising the exemption" The New York
Times states: "It is evident that
higher surtaxes can be made to yield
only limited amount of revenue.
Other possibilities must be explored.
1t will be wise to consider carefully
the arguments for and against Senator
Shoots proposal for O selective sales
tax, as we'll as those bearing on Sena-
tor Binghams plan for 2-cent stamp
tax on bank checks, Senator Reeds
suggestion for an increase in inheritance
taxes and all other proposals that may
be made. To raise at once by taxa
ton the full amount of $4,000, 900 600
required to balance the budget is i'm
possible and probably undesirable. The
important point is for the Government
to reduce the deficit substantially and
70 apportion the burden Of increased
taxation as fairly as possible and with
the least harm to the recovery of bust
ness"
Quoting Senator Joseph T. Robinson
as stating that putting the income
surtaXes too high may discourage the
investment in productive enterprises"
the Pittsburgh Post Gazette advises:
obviously, considerable additional
money. will have to be found to meet
the def1cit and constructive views
should be welcomed from all sides"