The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-04-25
(loI!iid@a|lq!f(Sljj 17lc((lkI
National Topics Interpreted "a fTYF1FETI
by William Bruckart SIa<IH
Light ON Nye Inquiry
National Topics Interpreted
by William Bruckart

Light on Nye Inquiry
Waeh:ngson.-The true purpose
of the Investigation by the senate
munitions committee appears to
have come to light. 1t is seeking
the honor of drafting legislation
which will give it a historical stand
ing as the group of men who first
moved to remove the incentive OF
profit as provocative of war. In
presenting its proposal to this end
however, the committee Is regarded
as having started something
which 1t is unlikely can be finished
by the group of individual senators
making up that committee.
When the investigating resolu-
ton was adopted by the senate, its
sponsors made much fuss about
conditions in the munitions indus
try. There were many speeches
made by Senator Nye (Rep., N. d.
concerning the wickedness Of mu-
nitions manufacturers, and in the
course Of those speeches, which
were made in a score of different
communities, Senator Nye announc-
ed conclusions which apparently
have not been supported by evil
dence adduced by the committee in
veestigators. Further, the senator
announced plans to disclose alleged
corruption among the munitions
manufacturers and stated definitely
that the purpose of the inquiry vas
to provide the basis for laws which
would control them.
Now, after seven months, we look
back on the committees record and
find that it has played game of
hop skip-and- Jump from one sub
ject to another and, I believe, the
consensus is that little Of real
value either to the senate or as pub
lie information has been developed.
Since there was the minimum of
publicity resulting from the inquiry
into munitions plants, shipbuilding
yards and the aircraft industry, the
committee has taken another tack.
Selling upon President Roosevelt's
phrase that profits must be taken
out of war, Senator Nye and his
colleagues turned their so-called
experts" loose on the track of
those Elusive profits. The result is
q piece of proposed legislation that
goees beyond anything ever offered
before in the way of tax legislation.
OF course, it Is entirely likely that
nothing at all will come of the Nye
bill insofar as improvement of our
taxation methods is concerned. But
its radical and altogether unwork-
able character is looked upon as
necessitating frank examination
of its provisions
Because the committee started
out ito investigate the munitions in
dustry and Notwithstanding the
fact that since it has wandered all
over the surface of the earth with
its inquiry there is a widespread be-
lief that its tax bill will apply only
too the munitions industry during
war time. Such is not the case. It
goes far beyond the munitions In
dustry and, indeed, it affects every
corporation and every individual
with an income of $1,000 or more.
Flynn-Nye Tax Bill
Probably the Flyn-Nye tax pro-
posal won't get. anywhere at all.
Certainly it will not be enacted in
this session of congress. Neverthe-
less, when senate committee SER
tously introduces a bill that would
limit income of corporation to 8
per cent Of its peace-time capitali-
ration the government would take
the rest by taxation-it is regarded
by many as time to call a halt. It
ought to be added here that obvi-
ously the country is faced with the
highest taxes it has ever known
In consequence of the tremendous
spending that has been going on
during the last two years and which
Is to be continued. These taxes are
due to come along within another
year or two.
I referred above to the percent
limit on incomes of corporations.
This is brought about through tax
OF so per cent on the first 6 per
cent OF earnings Of every corpora
ton. Above the 6 per cent earn
tngs it is proposed in the Flynn
Nye bill to take 100 per cent of the
total.
Tucked away in one section of
the bill is language that is ordi-
narily referred to as a "joker." It.
represents the first attempt by con-
gress, rather by the sponsors of this
legislation, to circumvent exemp-
ton Of government securities from
taxation. The federal, state, munic-
tpal, county and other governmental
jurisdictions have the power to is
sue bonds and other securities free
from taxation. This makes such Sc
curities attractive. For quite a
while there has been agitation to
do away with this tax exemption
privilege. Nobody has found way.
however, to get legislative bodies to
enact the necessary provisions into
law. So, we have something like
fifty billions of dollars in securi-
ties OF this type outstanding. If this
income were taxable, of course, it
would represent a considerable in
crease in revenues to the federal
government through income levies.
Thus 1t is stated the Flynn-Nye pro-