The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-12
MONDAY. AUG. Z. leas.
THE REALITIES-AT LAST

extremely complicated subject:
That has been one by-product Of that I'M
expected tax message which was dropped from
a clear and blazing sky upon a weary and
eager-to-get-home Congress late in June.
During what in more pleasant times are
called vacation days long classes have been
conducted in this concentrated course of con-
gressionsl and public education. And what
has been learned, TO date?
More than any one thng-that it's awfuly
easy to spend billions and correspondingly hard
to collect millions
The net effect is more and more to center
attention on the outgo. as the difficulties at
tendant upon the intake become more and
more alarmingly apparent.
In that respect, the schooling is all to the
good.
The whole thing wasn't designed that way.
It started out as a fast textbook at Huey
Long. countering a haymaker he had just at
tempted. II was to be all over in a few days
six, TO be exact Those with more than mil
lion a year incomes were to be socked. The
way-up inheritance brackets we're to be tapped
plenty The rich were to be treated rough,
but practically no voters we're to be touched
Then as the buns rush failed, as the per-
Torrance was transferred over into the House.
where tax measures are supposed to originate,
pressure from a confused and worried public
was applied, with the result that there came
forth bill 1t wasn't much of bill. 1t didn't
raise enough revenue to run the government
three weeks But It was bill. And, while
1t had broadened the base down to catch the
$4,000 boys. it still didn't do anything to the
rank and file of those who cast the ballots
in a nation where 4OOOO,O0O voted in the last
presidential election Less than 10000 votes
were involved in all that $4,000 class.
But now-look what the Senate has done!
And right in the teeth of another election year!
What kind of politics is this? And who let
the show get out of hand?
TAKING EN- down to $780, And even at
i that. raising less than half billion dol
lars for country that's spending 10 times
that. Showing up in this crude and vivid way
how we'll still be going hell-bent in the hole
even after this tax is applied Holy cats,
we'll have to be talking about cutting expenses
nextl st....~ --
What has happened is that those lawmakers
who constitute the majority of the Senate
Finance Committee have decided that there
are realities to be faced. They, unlike the
House, have come to the comprehension that
there is a Job of revenue raising to be done.
While the amount involved in what they pro-
pose is still patheticany slight in comparison
taken a step in the right direction.
They have recognized that the large source
OF revenue that lies in the upper middle, mid
die and lower brackets must be included, along
with very stiff taxes in the high brackets, if
We are to move toward a balanced budget.
persons getting less than $4,000 a year re-
port 90 per cent of the total of all incomes)
The proposed broadening of the base is
also sound policy in that it works toward in
creased visibility. and if followed out-as
policy-wiI eventually work toward cutting
dowr- on the invisible sales and nuisance taxes
which now carry two-thirds of the Federal
load and are assessed in hidden way much
more heavily against the people of lower and
middle incomes than are the visible income
taxes now proposed.
TN Z JoneSes, with one child. and $500
Il income. cited in a recent editorial, would
paw under the proposed Senate committees
schedule $3.50 in income tax. But their in
visible bill aggregates s4913.
The nations tax policy, We believe, should
be to lower the latter put the taxes where
they can be seen, make the JoneSeS eventually
pay less as the higher brackets pay more,
according TO the principle of ability pay.
and at the same time make the JoneSeS and
all other payers tax-consciouS and thereby, as
citizens. active "watch-dogs" of the Treasury.
So the good effect Of what the Senate
committee has done contributes greatly to-
ward working out Of a sounder tax policy and
much also to the summer school education.
That the policy enunciated by the Senate
committee will be accepted finally just ahead
Of a presidential election year is a question
that arouseS our skepticism. AS one news
paper rather dehcately put it. Virtual
uraaimity OF opinion exists that the House
more finely attuned TO the immediate reaction
Of the voting taxpayers. will shrink from en-
actment OF bill sure to cost so many people
money"
But, anyway, the Senate committee has
laid out an issue which is the crux of this
whole tax business 1t has drawn into the
light that which those who sought to play
politics have been so desperately trying 10
keep IN the dark.