Montana labor news., 1932-12-01
WASHINGTON SCENE


and the brazen falsehoods of the
outgoing regime. or &
But even before the full returns
were in, and before the defeat of the
Old Guard senators-Watson, Jones,
Moses, Bingham, Smoot, Glenn-had
been celebrated as it deserved, the
Bourbon Democrats had begun to
plot against the income tax. They
were exchanging opinions as to how
to hasten the adoption of a sales
tax at the coming lame-duck session
of Congress, with a view to grad
ually displacing the direct tax upon
incomes and inheritances. This was
the Hoover-Raskob policy, endorsed
as to a sales tax, at least, by Al
Smith. They felt the need of stealth
and haste, in order that a majority
of Democrats in Congress should be
committed to the scheme before pub
lie protest could be aroused.
r n
Adoption of a temporary or emer-
gency sales tax for a two-year period,
as demanded by some of the lawyers
for the huge private fortunes, would
require the setting up of a vast and
expensive machinery of collection
far too expensive for the results
that would be secured. Making the
sales tax permanent, in order to jus
tify the expense of the collection
machinery, would be serving notice
ON the w~age-earners and the entire
low-income majority in this country
that Congress was out to repeal the
income and estate taxes. Repeal of
the income tax would betray the work
of the Bryan Democracy and the
other liberal and radical elements,
over many years, in securing the in
come-tax amendment to the Consti-
tuition. 1t would be a direct betray-
al of the Democratic pledges made
in the 1882 campaign to the pro-
gressives and to the public at large.
But this is what the sales tax
promoters are trying to make the
present Democratic majority in the
House, and the entire Democratic
administration after next March, ac-
cept from Hoover and Mellon and
Mills. It is designed to head off a
restoration of the higher surtax rates
on big incomes, the reduction of ex-
emptions under which well-to-do now
are able to dodge most of their in
come taxes. 1t is a bold maneuver
to reverse the election returns by
throwing the burden of federal gov
ernmental costs upon the poor.
Smoot and Moses, Bingham and
Glenn, Jones and Watson, are for
this class legislation. So are the
Wall Street Democrats who follow
Joe Robinson. But the progressives
in the Senate are still able to block
banditry in a lame-duck session. 1t
is likely that Blaine, Brookhart, La
Toilette, Norris, Cutting, Johnson,
Frazier, Nye and Shipstead will line
up against this sales tax scheme, and
will open such a debate on the issue
of rule by the rich at the expense
of the poor-without touching, of
course, on the social economics which
make this struggle inevitable in a
dying capitalism-that the whole ma
ton will wake up to the danger.
When the new Congress comes in.
the chance of adopting a sales tax
upon the poor will be sharply re-
duced, unless present indications are
false. Such new men in the Senate
as Bone of Washington and Clark Of
Missouri, Russell of Georgia, Thomas
Of Utah, and Overton of Louisiana
are expected to carry on the defense
of the income and estate tax prin.
ciple within the Democratic ranks
Every attempt viii be made to whir
them into line, but it is significant
that among the greatest triumphs
of the senatorial campaign have
been those of Democrats who agreed
with Huey Longs demand that 6
definite limit be placed upon big
incomes and ihheritances. At a time
when the farm debt and other pri-
vate debt in the United States is
crushing out the hope Of economic
recovery, the struggle against the
sales tax becomes a struggle against
suicide.
Organized labor is fighting to pre-
vent this economic crime.