The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-27
SATURDAY. JULY n. 1898.
A FROTHY TAX BILL
"a sCRIPPs-HoWARD NEWsrAPERA

1--WE weeks ago the Democrats of the House
Ways and Means Committee told Presi-
oent Roosevelt that they did not feel like
writing tax bill at the fag end OF the
Congress session The President told them
to go ahead, anyway.
The bill which these committee Democrats
have thrown together is mute testimony that
their hearts have not been in their work Bv
no stretch of the imagination can it be called a
tax bill which meets the nations fiscal re-
alities
At the outside it would produce no more
than S2500O0000 in new revenue-not enough
to pay the governments bills for two weeks,
not enough to take a one-sixteenth slice out
Of the current years deficit, not enough to pay
one-third of the annual interest on the ma
tional debt
The corporation excess profits tax we be-
heve, is more reasonable and seasoned than the
graduated corporation income tax originally
sponsored. 1t is more securely anchored in
the ability-to-pay principle. so far as the
individual stockholders are concerned and
would exact a proportional tribute from
corporations that benefit from recovery. The
size, still advocated, is open to challenge
The schedule of tax increases on personal
incomes, while an improvement over the orig
inal idea to raise rates only on the estimated
IS incomes that exceed million dollars year.
still is little more than punitive expedition
against the filthy rich. 1t would boost the tax
only on incomes in excess of s15000O a year.
thereby touching about $50 persons And they
could escape the sting by converting more of
their investments into tax-exempt securities
ONLY political cowardice explains the fail
~ ure to tap lower incomes to get the rev.
enue the government so soreiy needs. And the
men who drafted the rates, we believe, under
estimated both the patriotism and realism of
the citizens whose incomes they refused to
touch. A majority of the citizens who in
these times have incomes ranging from $780,
900 to $4,000 to S25 900 to $4,000 and much
lower. we believe, would not resent being called
upon to pay more in direct taxes. Most
Americans do not begrudge paying their pro-
portional share of the governments expense.
The average family income is below $4,000 a
year. All whose incomes are above the average,
We believe, would see the fairness of a plan
taxing their incomes proportionately, both
to meet the present emergency and as step
toward readjustment of our whole Federal
tax system which now depends upon invisible
sales and nuisance taxes for 60 per cent of its
revenue. These hidden taxes fall heaviest
on the multitude whose incomes are below
the average, and scarcely touch the very
rich
Compared to what it might have been, the
inheritance tax schedule is utterly empty as
q revenue producer. mere 100000 a
year is all it will yield. That sum is espe-
cislly Insignificant when it is remembered
that the President wants to segregate the re-
ceipts of this tax to apply against the ma
tional debt. Conceivably, all other factors be-
ing favorable and the interest bill being met
otherwise that amount of revenue could re-
tire the public debt in about 1886 years. Here,
too the bill drafters were vote-conscious ex-
empting $4,000 inheritances to blood relatives
and $4,000 inheritances to others. 1t is sad
exhibit in a government which levies inviSi-
bic taxes on the necessities of the poor
As it now stands, this tax bill won't even
shade the color of the red ink used in the
treasury'S daily statement.