Evening star., 1932-03-13
Balancing the Budget.

II there was any doubt in the minds
of Americans that the Government
should have a balanced budget, even If
a tax increase be necessary to effect it
at this time, the greatly increased rate
Of interest which this Government is
compelled to pay for money should dis
pei that doubt. Representative Crisp
Of Georgia, acting chairman of the
House Ways and Means Committee,
pertinently pointed to the changed
rates while supporting the tax bill on
the House floor Friday. He showed that
the Government had recently issued
Bhort-term securities bearing interest
as high as 3% per cent, and that
year ago similar securities issued by
the Government carried interest at the
rate of only III per cent. 1t takes no
mathematician to figure out that with
these greatly increased rates Of inter-
est, If the Government continues to at
tempt to balance its budget by borrow
ing money, the ultimate burden on the
shoulders of the taxpayers will be very
much greater. And at the same time
no real progress will have been made
in wiping out the Treasury deficit. now
approaching the two billion-dollar point.
Since the introduction Of the new tax
bill as drafted by the Ways and Means
Committee, a barrage has been laid
down against it. Interests which feel
the pinch of the tax and members OF
Congress who fear the anger Of the tax
paying voters have taken the lead in
attacking the measure. No tax bill
which increases taxes will be popular in
this or any other country. The people
pay the taxes. Theirs is the burden.
The House ways and Means Commit
tee has been denounced because 1t
placed in the bill the manufacturers
tax of 2K per cent This has been
dubbed sales tax" 1t is no more
sales tax than the proposed excise
taxes on many industries, suggested as
q substitute, for example, by Repre-
sentative La Guardia of New York. 1t
has, indeed, an advantage over taxes
levied on individual industries. 1t is
fairer to the whole group of American
industries and makes them all share the
burden Of taxation If an attempt is
made to single out industries for taxa
tion, other industries will be in a pre-
ferred class
Give dog a bad name and matters
60 III for the dog. "Sales tax" the
name applied to the manufacturers tax,
is bad name. 1t has been unpopular
for years, made so by the hue and cry
raised against proposals in the past to
levy sales tax in this country. Too
many efforts are made to convince the
people that taxes can be devised and
levied which will not fall upon them.
The people in the end pay all the taxes.
The House Ways and Means Com
mittee faces real fight to maintain the
manufacturers tax, estimated to raise
about s6oo,ooo.O00 and the keystone of
the committees bill Too many mem
bers Of the House see the personal po-
ntical side Of the question; too many
fear that support Of the proposed bill
win bring an avalanche Of votes against
them at the polls. Those members who
consider the real need Of the country,
the vital necessity Of balancing the
Government budget for the sake Of the
credit of the Nation and for the in
spiration Of confidence in all the peo-
pie, confidence much needed, will take
a very different view Of the measure.
Mr. Crisp has told the House that II
a better plan than the manufacturers
tax, fairer plan and one calculated
to bring in as much revenue, can be
brought forward he is willing to accept
it. The Ways and Means Committee,
however, canvassed the field thoroughly,
holding extensive hearings When it
began its consideration of the tax bill
probably not three of its members were
favorable TO such tax as the manu-
facturers' tax, now dubbed a sales tax.
In the end, however, the committee was
forced, by a process of elimination, to
the view that the manufacturers tax
was the wisest course to follow If the
House in the end declines to pass bill
really calculated to aid in balancing the
Governments budget, it will be time,
indeed, for the people to think seriously
OF electing new members of that BODY