Evening star., 1935-06-15
Temporary" Nuisance Taxes.

mittee presumably intends to conflne
tax legislation at this session to two
year extension of the so-called nuis-
ance taxes of the 1882 revenue act,
together with the three-cent postage
for firSt-class non-local mail. At least
the Joint resolution reported from the
committee yesterday made no mention
of the proposal now under discussion
for a graduated inheritance tax. The
resolution, in fact, partakes Of the
nature of emergency action, for the
nuisance and other taxes would auto
matically expire at the end OF this
fiscal year, and if the resolution is not
enacted before that time there would
be resulting loss of revenue which the
Government can not well afford TO
stand.
AS for the taxes to be extended, the
committee report shows again that
hope springs eternal in the human
breast. 1t advocates removal of the
three-cent postage rate and the tenn
porary' taxes, but explains the time
has not been reached when this is
practical. But there is still hope:
The two-year extension period is
selected merely because it Is not yet
apparent that these additional rev.
enues can be spared before the expira-
ton of such a period. However, If
conditions permit, the Congress can,
of course, remove these taxes in whole
or in part before the expiration of
such period.
The statement is reminiscent of the
Presidents message to Congress on
the N. r. A. legislation, May II, two
years ago. when he suggested the i'm
position Of certain temporary taxes to
raise 1920, 900 900 to service the Gov
ernment's borrowing program, neces-
sary to carry out the public works
program. The President suggested no
specific taxes. But he wrote:
ne taxes 20 D6 lIIlpOSSu are 1OI tllC
purpose of providing Unemployment
for our citizens. Provisions should be
made for their reduction or elimina-
ton:
First-As fast as increasing rev.
enues from improving business become
available to replace them;
Second-Whenever the repeal of the
eighteenth amendment now pending
before the States shall have been rati-
fed and the repeal of the Volstead
act effected. The pre-prohibition rev.
enue laws would then automatically
go into effect and yield enough wholly
TO eliminate these temporary re-em-
ployment taxes.
When Congress enacted the N R. A.
legislation it included under the head
ing Unemployment ard Relief
Taxes number of provisions which
extended until June 80. 1885, nuisance
and other taxes which. under the 1882
revenue act, would automatically have
expired in 1884. But it carefully speci-
fled these taxes, which, in keeping
with the Presidents promises of tax
relief, would be repealed automatically
at the close "of the first fiscal year
ending June 80 of any year after the
year 1888 during which the total re-
ceipts of the United States ex-
ceed its total expenditures" or the
repeal of the eighteenth amendment to
the Constitution, whichever is the
earlier"
The repeal Of the eighteenth amend
ment, of course, was the earlier. And
with that event half a cent was
stricken from the gas tax, together
with taxes on dividends, the capital
stock tax and the excess profits tax.
But other taxes-and there is a long
list of them-which we're extended in
the National industrial recovery act
after their temporary" life was ended
remained and were not affected by
repeal of the eighteenth amendment or
by the increased revenues anticipated
to fiow as the result of recovery legis-
lation. Now they are being extended
for two years more. And to the orig
inal SO 300. .o0o, 900 appropriated for re-
lief activities the Government has
added s4,880. .ooo,O 900 for relief activi-
ties. Next month, Mr.. Harry Hopkins
hopes, a substantial portion of the
$500 900 persons on the relief rolls
will be on the works-relief rolls.