The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-31
DYER REVIEWS
i PENSION PLAN
OF TOWNSEND
Restores Buying, SIaSheS
Tax Burden, Advocate Of
Bill Declares.
BY LAWRENCE b. DYER
Marion County Organizer Of Townsend
Plan

into the warp and wool" in our
social behavior" DR.. Townsend OF
Long Beach, Cal, sensed the force
and at once set about to formulate
ways and means to utilize a con-
viction of his.
DR.. Townsend is asking two dis
tinctive legislative acts.
First, a bill obligating the Gov
eminent to pay every citizen whose
record is free Of habitual criminal
fly, and who has attained the age
Of so years. monthly pension of
5000 a month until the end of his
or her life, upon the sole that he or
she retires from all further bust
ness or profession for gain, and
grees under oath to spend the en-
- amount of pension within the
oldnes of the United States dur
=, the current month in which it is
+etlsived.
eecond, a bill creating a nation
Re Federal transaction sales tax,
carculated at a rate sufficiently high
~ produce the revenue necessary
to meet The requirements of bill
No. l.
Objects ThreefOId
The chief detectives Of the Town
send plan are threefold: First is
the execution of a plan to restore
buying so our citizens will be en-
abled to purchase the things they
need for their comforts and devel-
opment; second, steps must be taken
to relieve society Of the staggering
burden Of taxation now made neceS-
sary because of the cost of charity
and crime, and third, 20 retire all
who have attained the age of go
years, from the productive field for
gain.
The Townsend plan is, however,
primarily, a recovery movement.
There are about 10.35O, 600 people in
the country who have ATTAINED the
age Of so years. From Industrial OBJ
servationS, it Is estimated, that
about eight millions Of this group
would apply for the pension. About
four millions Of this group are work
ing all or part time. Economic ac-
tuarieS tell us, that under our pres
ent industrial system, that each $500
pension check spent in a given
community in which it is received,
will create and maintain a job for one
more worker, at a wage cOmmen-
surate with the pension check, &C
cording to a fundamental law Of
economics.
From this, we may safely con-
clude, that some IA or Is millions of
idle workers will very soon be re-
stored to jobs again, more stable and
secure with an ample wage to live
well.
To Be Fair, Just
What will it cost to finance this
plan? How can it be donef Who is
to pay for it? And is the whole plan
practical? The transaction sales
tax is to be levied low for the neces-
sites Of life and relatively higher,
on the luxuries. This tax is to be
so levied as to apply so as to be fair
and just to all
Government statistics show that
IN 1929, total business transactions
were between 1900 and 1900 billion
dollars worth of business. For the
sake Of illustration, We'll assume
the average amount of IS hundred
billion dollars Of business.
The retiring Of 8 millions Of our
elders would require about $780,
100000. We contend even the larg-
est amount would not exceed 2 bill
lions per month for the tax bud
get, or not to exceed 10 or 20 bill
lions per annum. Assuming the
average volume Of business in Or
der to raise a fund of 10 billions, it
would neceSSitate a tax levy of
about $40 of l per cent. The tax
might drop down as low as 2-3 of
1 per cent, in course of time.
indianapolis is estimated to have
about IS or SO thousands of her
people out Of work. Our city has
about 10000 people go years Of age
or over Therefore, it would draw
a monthly pension check of S6,O00,-
900 to be turned loose" in the bust
ness channels. This money, natur-
ally would change hands many
times during the month in which
received.
Indianapolis has about 243,000
people who worE for a living. If
the monthly pension check were
used 2; a pay check, it would put
the-~ IL back 20 work on weekly
Z Of at least $40.
When this plan starts to operate
the greatest buying stampede will
be enacted that our city has ever
witnessed. Very soon, the whole
industrial Indianapolis will have
taken on a new spirit, beftting the
new era. Transportation systems,
factories, fields, forests, banking
institutions, and all phases Of bust
ness will be busy.
Would End Duplication
Much duplication of tax budgets
will have been removed o. at least
greatly reduced. The taxpayer, in
our own city will have been relieved
from very heavy burden.
It costs society to endure vice,
ignorance, Incidence, discomfort
nent, unhealthfuI conditions. They
are all figured in the tax budget
We must get people back to work SC
as to minimize these unwholesome
conditions in our social life. They
cost too much.
Since the sale of liquor has been
Iegalized the public has spent about
s3120,0O0,OOO for liquor. The ma
tional tax on this traffic was 1863
millions of dollars. The per capita
consumption was about $25 worth.
Indianapolis consumed about
So ,123 900 worth of this liquor, which
is about one and one half times as
large as indianapolis banks debts
as Of Dec. %. Some opponents OF
the Townsend plan contend it Is
an economic impossibility and is
"illlSory." The liquor bill for the
year in question would have paid fol-
one and one-half monthly pension