The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-27
NOT ENOUGH TAXES!

THE proposed tax bill is Inadequate The
ways and means committee of the house
has done some useful tinkering with the law.
and in taxing unearned income more than
earned income has revived a just principle. In
ordinary circumstances this might be enough.
But with the government facing a $4,000 .OOO-
600 debt, it is not enough.
To borrow huge sums as the government
IS doing, and must do. without raising taxes
is unwise. It is bad business because it means
that revenues will be eaten I'D by interest
charges on the public debt rather than on
reduction of principal.
And it is bad morals because it seeks to
pass on to the next generation the debts and
burdens Of this generation.
There is an added consideration. 1t is the
danger Of uncontrolled imitation. We must
have refation-no sensible citizen denies that.
But every sensible citizen is anxious that the
administration be able to carry out its pledge
to control imitation. That is not easy. In
deed, it probably will be impossible for any
political administration to control initiation
If it resorts to unlimited borrowing.
During the emergency we can not hold to
a pay-as-you-go policy. But We can afford
to pay much more than is contemplated by
this proposed tax bill.
The new proposal would not materially in
crease income taxes on earned incomes-that
is the majority of incomes-in the lower and
middle brackets. This is wrong. Every citizen
lucky enough in these days to have job and
an income should be willing to help pay our
way out Of the depression.
Compared with citizens in other countries,
we are slackers in income tax payments. Our
system makes a gesture Of putting a heavy
tax on very large incomes, incomes of a half
million and a million dollars yearly. But that
does not mean much in terms of revenue be-
cause the number of such incomes is small.
The real test from the standpoint of revenue
is the amount collected from the middle
bracketS-from incomes of $4,000 to 100000
The reason the government debt is mounting
so rapidly is that We never have had an adj
ministration with sufficient political courage
to tax this great class.
comparison Of the present rate of this
and other countries for earned net income of
a married person with no dependents. for
instance. shows: On $4,000 income in this
per cent; in France 252 per cent; on s25 900.
in this country, 10 per cent; Great Britain.
% per cent; France. 3s per cent; on $4,000,
in this country. II per cent; Great Britain, 80
per cent; France. Al per cent; on 100000 in
this country 80 per cent; Great Britain, 4s
per cent; France 81 per cent.
Thus a substantial and progressive increase
al along the line is possible in this country on
the basis of the experience of other countries.
We do not believe that Americans are any less
patriotic than foreigners. Americans with net
incomes of $4,000 to 100000 should be-and
we believe are-of the opinion that they are
fortunate to have incomes on which to pay
a heavy tax.
The same principle applies to death duties.
President Roosevelt has provided leader
ship in other ways. So far he has not an
nounced tax policy. Here is his opportunity.