Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-20
THE POLITICAL
MILL
BY C. Could Lincoln.

calling for increased taxes on corpora
tions, incomes and gifts and an inheri-
tance tax is likely to have considerable
and wide effect. Every one knows that
sooner or later the administration must
start collecting more revenue to meet
the huge expenditures which it has
undertaken In the last two or three
years. Every one knows that taxes are
not popular The President, however,
now comes forward with "share-the-
wealth" program of his own-a program
that caused Senator Huey P. Long to
utter loud amen" in the Senate cham
Der. This program will have a popular
appeal, since it proposes to take money
from the rich to pay the public debt,
and popular appeal means a political
effect. If the President sticks to what
he said and implied in his message,
Senator Long may yet be found in line
with the Democratic national ticket next
year. This seems almost incredible in
view of the torrent of invective that has
been heaped upon Mr.. Roosevelt and
the New Dealers by the Louisiana
Kingfish. Strange things happen, how
ever, in politics.
It was not only the Presidents imme-
date proposals for increased taxes that
stirred Huey Long and other share-the-
wealth enthusiasts. 1t was his proposals
for broad program which would not
only curb further concentration OF
wealth in the hands of individuals, but
also in corporate hands. Ultimately"
the President said, I'VE should seek
through taxation the simplification OF
our corporate structures through the
elimination of unnecessary holding
companies in all lines of business. We
should likewise discourage unwieldy
and unnecessary corporate surpluSes."
k%&
To some the Presidents suggestions
will sound like a demand for a return
to the horse and buggy" days Of
business. That will not, however, dis
please lot of Americans who have been
going out of business because Of the
rise of chain stores and of other great
corporate organizations that once upon
a time were called trusts" In fact,
this horse and buggy" business, with
its promise of greater independence and
greater chances of success for the little
fellow, will undoubtedly be popular,
although it would call for tremendous
readjuStment.
y y
While the President shows himself
willing to return to the horse and buggy"
days of business, he apparently is still
not reconciled to return to the horse
and buggy" days of Government. The
decentralization Of power may be all
right so far as business is concerned.
But the decentralization of govern
mental power is not in line with the
| plans of the New Dealers And yet the
decentralization of governmental power
is not without its strong appeal to
Americans. They do not like to be
"regimented" or told exactly what they
must do in their usual occupations by
a powerful and centralized Government
in Washington. The President had a
glimpse of that fact after the Supreme
| Court declared his N. r. A. unconSti-
| tutional and after he had declared that
the courts decision was taking the
country back to the horse and buggy"
era. Undoubtedly there are a lot of
people who would like to see decen-
| tralization of business and of Govern
ment and breakup Of the concentra-
ton of great wealth in the hands Of a
comparatively few individuals and few
| corporations.
The Presidents "share-the-wealth"
tax plan may serve to take the atten-
ton Of the people away from the rebuff
which the New Deal experienced at the
hands of the Supreme Court. From a
| political point of view the check which
the President met in the courts deci-
sion on the N. R. A. was the first body
blow he has received since he became
hi of Tic irrn Nd f1af
| of the New Deal suffered 1t does not
do to let such an idea simmer long in
the minds of the people. Soon after
the Supreme Court handed down its
| N. R. A. decision, some of the informed
leaders in Congress talked "off the
record" about a probable tax message
which the President would send to Con-
gress. At the White House it was denied
that the President had thought of taxes
| for months. Yet within a comparatively
| few days this elaborate tax program
was put forward to Congress in special
message.
If the Congress undertakes to make
the tax changes recommended by the
| President at the present session of Con-
gress, it may delay by a couple of weeks
| or more adjournment-an adjournment
that even now is not expected before
the middle of July. The suggestion
has been made that the Senate write
the Presidents three-way tax plan into
the joint resolution extending the life
| of certain excise taxes beyond July 1.
That plan may be followed, although
the leaders in the Senate, including
Senator Harrison, seemed at first to be
disinclined toward that procedure. What
is done will depend, it is expected, upon
the demands made by the President.
Whatever the Democratic leaders may
decide, in conjunction with the PreSi-
dent, regarding this matter, the Senate
is going to have an opportunity to ex-
press itself upon increased taxation
when the joint resolution comes up for
consideration. Senator La Toilette of
Wisconsin, Progressive, who for years
| has been demanding that tax levieS on
wealth be increased, is all ready to offer
amendments of his own which he says
will increase the annual Federal revenue
| by q billion dollars. The La Toilette
| plan calls for greater income tax levies,
| for inheritance and gift taxes and for
a much higher tax on corporations. In
fact, it has many of the earmarks of the
| Presidents plan. Unless the administra-
| ton determines to go ahead now with
| its tax program, the La Toilette amend
| ments will have the backing Of many Of
| the Senators-and particularly of the
1 progreSSives on both sides of the cham
| Der. It looks as though the admins
| tration might be forced to go right ahead