Evening star., 1933-05-16
Public Works and Taxes.

President Roosevelt, 1t appears, ha1
decided to leave to the Congress the
actual selection Of the method Of raising
additional revenue to meet the admins
tration's So, 800, 900, 900 public works pro-
gram. He will go no further. 1t Is now
reported, than to suggest to the Con-
gress half a dozen tax plans. OF
course, this is thoroughly in accord with
the provision of the Constitution which
places upon the Congress. and particu-
larly upon the House, the duty OF writ
ing tax legislation. 1t had been ex-
pected that the Presidents bill for .
public works program would carry with
it definite tax levy, and that 1t would
be manufacturers sales tax, perhaps
dubbed a unemployment tax" In
deed, 1t was confidently predicted in
quarters which seemed to be informed
that the administration had come around
to the position Of supporting a manu-
facturerS' sales tax. Immediately there
was a roar from some Of the anti
sales tax members Of Congress. How
ever, the sales tax Is not yet dead. 1t
may be revived when the members of
the House Ways and Means Committee
undertake to draft the law to raise
1920, 100000 additional revenue.
One thing the President insists upon !;
that the public works program, calling
for the expenditure OF vast sums Of
money, shall carry with 1t some definite
provision for raising this money by
taxation. If the President will stick
to that proposal 1t will be Just 50 much
the better for the people in the long
run. Congress has been in the habit
over . period Of many years Of making
huge appropriations for all kinds OF
projects without attempting first to
ascertain just where the money is to be
found to pay the bills. 1t may be very
popular for the Government to spend
money: taxation to pay the bills is by
no means so popular. Those legislators
who now demand that billions of dol
lars be expended for the public works
program and for all kinds Of so-called
relief measures may squirm bit when
they are confronted with the need OF
imposing taxes on the people to pay for
these public works. 1t Is safe to predict
that If the President will insist in the
future upon having Congress at the
same time that it makes big appropri-
ations outside Of the ordinary running
expenses of the Government provide
for the needed revenue through new
taxation there will be fewer OF these
appropriations and less chance Of the
Governments running behind and into
the red.
The President also Is to urge that
the public works program be financed
through the issue of Government bonds
paying three per cent interest. It had
been suggested that he might under
take to finance these big expenditures
for public works through the powers
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law just enacted: that he would have
Treasury notes or "greenbacks" issued
in sufncient quantity to meet these
payments. That, apparently, is a hard
fate which the country Is not to en-
dure.
Some day the wisdom and value OF
a general manufactured sales tag as
revenue-p producing measure, when
compared with other forms of taxation
may be recognized by Congress. Many
Of the State Legislatures already have
seen the wisdom and fairness Of the
tax At present the sales tax is Like
the pea in the old shell game: Nov
you see it. now you don't. Gentlemen
the hand is quicker than the eye"