Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1934-07-12
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National Topics Interpreted "a fTNS5FT6A
by William Bruckart <kkSnETF9T
National Topics Interpreted
by William Bruckart

NAL adjournment a few weeks ago,
but l found in roam
Tax Inquiry ing about the Capt.
S;or:6.o,s toll and senate and
house office build
ings the other day, that there are no
less than eleven Of its committees con-
tinuing In session, and that no less
investigations. 1t is true that only a
few members of each of the commit
tees remain In attendance-the others
are out campaigning for reelection
but, even so, it appears there is going
to be an extraordinary amount of
searching after truth, or mudslinging,
through the heat of the summer and
the cool of the autumn.
While am not infallible in my
judgment and conclusions, must con-
fess that can see valid reason for
only one, just single one, of those
eleven investigations. The ways and
means committee of the house has
started out to do some surveying Of
the federal taxation structure, and ev-
erywhere have asked have found
approval Of the idea. There can be
no doubt Of a need for that survey,
provided the politicians will accept the
results Of those who examined the
facts, because the American taxation
system, both national and state, surely
is of the hit-or-miss type.
R,,h e. 81 -
the tax inquiry. 1 reported to you re-
Gently that it was going to cost tax
payers total of almost 81, 100000
a year in interest on the public debt
of the national government when that
debt reaches the $31,0OOO 100000 which
President Roosevelt has announced it
will reach. Since that information
was given you, further inquiries con-
vince me the debt easily may reach
$35, 100000 by the winter of 1886
SO, and the interest alone will be cor
respondingly more. This is just the
interest, mind you, and makes no pro-
vision for retirement of any of the
debt, which would have to take extra
tax dollars.
Since the national debt is so high,
and going higher and the house ways
and means committee is making such
an intensive study Of the tax system,
one can not fail to link the two to-
gether. The obvious question is: is
the administration becoming concerned
over the sources Of funds to pay the
huge total of debt incurred In spend
ing our way out Of the depression?
Concurrently with the house COM
mittee's study, Secretary Morgenthau
of the treasury. announced the ap-
pointment Of another brain-trust group
to study tax questions for him. Mr..
Morgenthau holds that our tax system
is full Of holes, which undoubtedly it
is, and he feels that the general meth
cd should be revamped so that the
flow Of revenue will not be so depend
ent upon prosperous economic condi-
tons. TO that end, the secretary sent
part of the number of professors and
tax experts selected by him over to
England for a study of British tax
alton methods. British taxes appar-
emily are much higher than ours, and
Mr.. Morgenthau is DESTROYS of finding
out how the British government gets
away with it.
So, one hears around Washington
great deal of discussion of what the
future holds in the way of tax levies
upon the rank and file. Mr.. Roosevelt
cold Tn hic latest rodio cpaaoh 70 Tho
country, it will be remembered, that
relief was his first consideration, that
vast sums had been expended for relief
and that further vast sums will be
expended. All of which leads back to
the observation I made above, namely,
that one cannot help linking these sew
eral studies together with an under
current of fear that, perhaps, we are
spending too much money.
While discussing the tax investiga-
ton, however, it would be unfair to
omit reference to
Double one feature Of the
Taxation Foil house committee in
vestigation that, l
am told by real tax authorities, can
be Of much value. The house committee
was instructed to look into the double
taxation evil that besets the country.
1t is known to everyone, of course,
that there are places and things upon
which the federal government levies
high taxes and that these taxes fall
on top Of similar, and sometimes
greater, levies by the states. Conse-
quently, the committee inquiry may
bring to light how often, and where,
this sort of thing is happening.
For example of double taxation, two
or three common Illustrations will
serve to indicate how severely the
burden obtains. Take the tax on gas
oline as one. The federal government
laid a tax on gasoline two years ago,
and that tax although 1t was small had
to be paid by users of "gas" in addi-
ton to the state levies which run as
high In some states as Z or S cents a
gallon, making the tax borne by that
commodity aggregate as much as 10 or
IL cents a gallon in some places. The
tax on cigarettes is another example,
but this commodity was taxed first
by the federal government and then
the states put their levies on. The re-
! suit is that in MANY states the tax