Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-02-01
THE NATIONAL
GOVERNMENT
By CONG. JOHN PAUL KVALE

pOTLdHC Topic IOT ILLS WEEK > lcltCI
is supplied through publication, al
most simultaneously, of the text of
the new tax bill (still open to change,
however, before introduction to the
House) and of the report by the
group which for year and half
has made a most exhaustive study of
our national income. The latter, just
issued by the Department of Com
merce, is a detailed breakdown of
income to show how averages in the
last four years of depression have
affected wages and salaries of labor
as we'll as wages" of property and
money, including rents, royalties,
dividends. interest and similar items.
On it's face, the tax bill seems dis
appointing to those who have in
sisted that our existing tax struc-
ture must be sharply and upwardly
modified in the case of income taxes
levied on the extremely wealthy in
dividuals and corporations and in
the case of gifts and inheritances.
Closer examination. however, almost
entirely dispels that feeling, for it
is quickly revealed that the rich who
have evaded their share of the fed
eral tax burden are to be reached
perhaps even more vigorously through
revision of the administrative sec
lions and through change in policy
of taxation of unearneG income, which
for the past two years has been motor
iously favored.
The bill only attempts to increase
total revenues by two hundred mil
lions, not a great deal when compared
with current OUTLAWS. But it proves
that the budget balancing hysteria
does not sway the administration, and
that it proposes to wait until there
is some appreciate and permanent
revival in business and industry be-
fore it turns to taxing the higher in
come brackets of individuals and in
tion then will be productive of rich
revenue, and will also be a brake
on any wild initiation such as was
experienced in the late twenties.
The wisdom of such a course is
indicated by an analysis of the re-
port referred to above. 1t shows the
startling figure, for instance, of a
wage decline of sixty per cent from
1929 to 1882. This is the deepest for
any form of payments, and is the
more impressive when it is remem-
bered the figures only apply to the
full-time employees. If unemployment
and part time work were figured in,
the result would be admittedly stag
gering. In contrast with that item,
wages of money declined only one
twenty-fifth of the 1929 level; hardly
noticeable interest reduction. Div
idends suffered somewhat more, but
the statistics clearly demonstrate
what an unequal division has been
made in returns in the form of wages
and salaries, as against interest and
dividends.
Consequently, any policy of taxa
ton tending to retard business re-
covery, unemployment and increased
volume of income of all kinds is now
tabooed, and the entire effort of the
administration will be to penalize
the unearned incomes and tax dodg-
ers without disturbing the existing
schedules of tax payments.
Some discussion will center around
the effort to give the President dis
cretionary power to impose retalia-
tory taxes on foreign corporations OPP
Grating in the United States in cases
where nations such as France tax
our corporations heavily. Instead of
trying to write mandatory provisions
into the bill, which would have pro-
voked a bitter and perhaps a losing
fight, the committee proposes to give
this permissive authority and then
bring pressure on the President to
exercise it. But he has given good
ground for the belief that he is OPP
posed to the economic and financial
warfare of retaliations and reprisals
with their attendant dangers. A, lit
tie while ago he made short work
of those who attempted to wreak re-
venge and resentment on France by
placing a virtual embargo on impor-
tation of her wines and liquors that
are so economically important to that
nation. In this case, then, he will be