Evening star., 1932-06-07
The New Tax Law.

duce Sl,l18, 500, 900 additional money
by taxation in order that the Gov
ernment's budget may be balanced. is
law at last. The measure was signed
by the President late yesterday after
the Senate had agreed to the confer
ence report. While the new law levles
a heavy burden upon the American
people, the necessity for its passage
has been apparent for months. With
out a balanced budget the financial
stability of the Government and OF the
country would be seriously challenged
Under the weight of these taxes now
imposed the people undoubtedly will
take greater interest in what the
Congress does with their money. They
should. Too long the demands from
we'll meaning groups for paternalistie
action by the Government, with con-
stantly growing costs, have been needed
by the legislators and new projects have
added many millions of dollars to al
ready huge annual appropriations. The
tax consciousness of the American peo-
pie is likely to be a great factor in
forcing governmental economies.
The new income tax rates, the highest
in the history of the country except
during the World War, will be paid or
incomes derived this calendar year. The
gift tax also becomes Immediately
operative Numerous excise taxes STAMP
taxes and so-called nuisance taxes ge
into effect fifteen days hence. The In
creases in postal rates become effective
at the end of thirty days.
The business OF the country and thu
people know now what to expect In the
way of new taxation. 1t is far better that
they should, and it is regrettable thai
the knowledge has been so ling de-
layed. When Congress assembled last
December it was well understood that
new tax ievies, designed to balance the
Governments budget, would be neces-
sary. Instead of writing bill into law
promptly, the legislators have wrang &c
over the matter for six months. Had II
net been for the prodding given BY
President Hoover, they probably woulo
be wrangling still. The country la.
backed the Chief Executive solidly in
his efforts to obtain speedy action from
Congress on this all-important matter.
Taxes and economies are not pleas
ant. Unfortunately they are necessary
The American people have met other
trials and have overcome them. They
will overcome the present economic
distress. No one doubts that they will
succeed. But the necessity today is for
economy. The Senate is at work on q
measure of economy for the Govern
ment itself 1t must be worked out
successfully if the budget is to be bal
anced And after the economy meas
ure has been drafted and written into
law, the Congress k to turn Its atten-
ton to relief program" that is In
tended to stimulate industry, add Ia
employment and also to make 1t pos
sible for the Federal Government tc
loan to States which are in need Of
funds to help care for the unemployed
The need is not only for unemployment
aid, but careful planning that the re-
lief program shall not become merely
i spending orgy, for which the Ameri-
can people will have to pay in the days
to come Too great spending in the
past has brought the country to a point
where a two-billion dollar Treasury
deficit stares it in the face. Too great
spending in the future will only con-
! tinue the evil.