The Waterbury Democrat., 1932-03-05
Digest of
Tax Referendum
Chamber Prepares Article
Dealing With Facts

To acquaint members Of the
| board of directors and representa-
tive business leaders Of the Water
bury Chamber Of Commerce OF the
national referendum on federal
taxes as sponsored by the United
States Chamber of Commerce o d.
gcst of the official pamphlets has
been prepared.
It explains the increasing
amount of taxes and the diminish
| ing amount of revenue, leaving
huge deficits which must be faced.
Every business Is affected by the
result. Members Of the chamber
are asked to consider and vote on
various ways Of increasing revenue
and decreasing expenditures.
Attention Is called to the great
possibilities of the proposed per-
sonal income tax. It Is claimed that
100000 persons were exempted
from this form Of tax in 1925 and
that a return OF the law would
bring that class back.
The digest now under scrutiny Is
as follows:
"Iet's DO Something About Taxes"
vitality important questions OF
national economic policy confront
both business and government.
The sphere of the latter has been
constantly expanding. The costs OF
public administration have risen
to approximately S14.O00,000,ooo.
an increase Of $50 per cent since
1918. The effect Of this has been
evident in your own overhead.
has risen ATS per cent, the cost of
| o7G nor rapt md
the cost Of local government 270
per cent. These costs continue to
rise in the face of declining ma
tional income.
| Upon this premise it bases its
recommendations for a federal tax
program. Its principal proposals
are:
1. A definite government pro-
gram should be worked out and
adopted at once calculated to pro-
duce a balanced budget within a
short period-say. three years.
Large amounts must be borrowed
to meet the deficit for the fiscal
year 1882 and these cannot be bor-
rowed advantageously unless the
government maintains its credit by
adopting a sound fiscal policy.
2. The budget should be bal
anced to the maximum extent pos
sible by a drastic reduction in
government expense, not by in
creased taxation.
8. Existing taxes should be
moderately increased and new
/ taxes imposed depending upon the
extent to which anticipated deficits
are reduced by cutting expendi-
lures. :.
4. No retroactive taxes should
be imposed.
s. Legislation for increased. or
additional taxes should be enacted
mainly on an emergency basis.
9. There should be moderate
increases In existing normal and
surtax rates and reduction OF the
| personal credits 80 that larger
number OF citizens will contribute
moderate amounts to meet the ex-
penses OF government.
7. 1t Is desirable to make no In
/ crease In the corporation income
tax but, II an addition n unayoid-
able, II should be moderate.
8. Moderate excuses on q NUM-
Der of articles of wide use but not
OF frst necessity are 10 be per-
ferred TO q general sales tax or
turnover tau.
D. The tan rate on all capital
gains lexeept those OF q deaier)
should be reduced 10 q low fat rate
with q corresponding reduction Of
the deduction for capital losses.
10. Estate taxes should not be
ii. Immediately after the EN-.
ergeney aituation has been met
preparations should be made fer
developing a long range program
Of federal fnanes which wsii To-